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But the internet traffic jam will also stifle innovation. "The next Amazon, Google or YouTube might not arise, not from a lack of user demand but because of insufficient infrastructure preventing applications and companies emerging," the report warned.
The report was part-funded by the Internet Innovation Alliance (IIA) which campaigns for universal broadband in the US.
"We must take the necessary steps to build out network capacity or potentially face internet gridlock that could wreak havoc on internet services," said Larry Irving, co-chairman of the IIA.
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