This slow down could mean a longer time to download online or even a return to dial up, but the real problem is the detrimental effect it will have on new services.

"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 said that around $137bn would be needed globally to upgrade broadband networks.

According to research by measurement firm comScore, nearly 75% of US Internet users watched an average of 158 minutes of online video and viewed more than 8.3bn video streams during May. These numbers will continue to grow and eventually the network will not be able to hold anymore applications or services.

The report is part-funded by the Internet Innovation Alliance (IIA), who says, "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.

Source: BBC News