Consumer demand for bandwidth could see the internet running out of capacity as early as 2010, according to US analyst firm Nemertes Research.

The company predicts there will be a drastic slowdown as the network struggles to cope with the amount of data being carried on it.

The report said £66bn needed to be spent upgrading broadband networks globally.

It says: “It may take more than one attempt to confirm an online purchase or it may take longer to download the latest video from YouTube.

“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.