Watch out for the next Internet bubble

The UK edition ZDnet is warning that the next internet bubble might just be on the brink of busting as suddenly as the one seven years ago.

The journalist compared the period preceding the bust with what the period we are living in now and concluded that they are similar on more than a few points.

Money is available and so are the enthusiasm and the unstoppable willpower to change things.

More and more companies are diversifying in areas that spread beyond their traditional core expertise areas either through acquisitions or partnerships, with all the dangers that this encompasses. For example, Vodafone is planning to expand into broadband and landlines.

Perhaps more importantly is that business plans are meant to generate money and that, some ventures, like Carphone's Warehouse free broadband offer are unsustainable in the long run as loss leaders.