This is a link to a great article on the exponential growth of Internet bandwidth and how the last mile networks are limiting this growth. While it is very centric to the United States of America, the same principals still apply here in Australia.

He dispells the "exaflood" as a just fear mongering. Instead he claims "the Internet backbone has plenty of capacity. If the tubes are going to get clogged, then it's the last mile that will need a good plumber". Rather relevant considering Australia's current National Broadband Network request for proposals.

Torrents of traffic and Internet backbone