Between 1998 and early 2000, analog dialup started to slowly slip as ADSL and cable services were deployed. There was no doubt that faster, full-time connections were needed for both homes and businesses. After all, these were the heady days of the dotcom bubble. Telecom companies and cable providers were just not deploying services quickly enough. It's no conspiracy theory that telecom companies didn't want to provide the service because it threatened to undermine an existing business, and that cable companies had quite a bit of network upgrading to perform before wide deployment could even occur. Furthermore, both ADSL and cable were -- for the most part -- the purview of the incumbent telecom and cable companies. Internet Service Providers, try as they may [1][2], didn't have a chance in these markets.
The dotcom crash, 9/11/01, and the telecom scandals didn't help things. What did occur following those disruptions was the popularization of Wi-Fi (IEEE 802.11). Also, the value of the Internet barely skipped a beat. E-commerce, digital music, voice-over-IP and video were almost entirely grass-roots movements, driving the necessity for bandwidth ever higher. Podcasting, video blogging, and television distribution through Apple's iTunes are happening today -- not at some distant future time. The ADSL and cable bottlenecks are the dilemma that continue to constrict progress.
Without touching on the distinction between theoretical and real bandwidth, let's continue the relative network speeds graph from Part I of this post.

Although both ADSL and cable services have begun to deliver faster speeds, they're both dwarfed by the network performances most of us experience every day in our home and office environments. Furthermore, they are not technically different from the ADSL and cable services provided in 1998 -- they're just much closer to their maximum potential. To put my point into greater relief, the following graph presents a comparison between the connection speeds of my actual networks as I write the post.

The server where my blog exists is in a data center next to Seattle's Space Needle. It connects to the physical Internet via a full-duplex, 100 megabit per second Ethernet port. My office has both an 802.11g Wi-Fi access point (half-duplex, 54 megabits per second) and a full-duplex, 100 megabit per second Ethernet network. The fastest Internet connection I could have installed at my office -- without paying several thousand dollars per month -- was 7 megabit per second (down) by 1 megabit per second (up) ADSL. Most people don't even have that fast of a connection.
With the growing popularity of gigabit per second Ethernet and the new 802.11n Wi-Fi specification, the disparity will only grow.
In summary, new Internet applications such as podcasting, music and video distribution are continuing to necessitate higher network speeds. Whereas local area networks based on Ethernet, fiber and Wi-Fi regularly operate at speeds between 100 and 1,000 megabits per second, telecom and cable companies have reached the end of their bandwidth potential using the existing copper and coax infrastructure. A move to ADSL2+ or Hybrid-Fiber-Coax will not be enough to address this ever-increasing disparity. Part III of this post will explore possible futures.