The fibre optic boom and bust (1999–2002)
Telecom carriers laid hundreds of thousands of miles of fibre optic cable on borrowed money, expecting internet demand to fill it within a few years. By early 2002, Global Crossing had filed for bankruptcy and WorldCom followed in July, crushed under the debt.
Billions in debt went unpaid and thousands of jobs were lost as the carriers collapsed.
The overbuild left unused 'dark fibre' that took a decade to fill. It remains the cautionary tale for debt-funded infrastructure built ahead of measured demand.
AI demand is the current 'cannot lose' thesis, but the structure echoes the fibre boom: massive borrowing, construction racing ahead of verified demand, and sharp sensitivity to interest rates.
