Here's my take based on what's in use today in the industry.
Sure, infinite number of wavelengths can exist in a single fiber. It's not practically true that the usable spectrum width is infinite; optical fibers carry light towards the infrared part of the spectrum, which in turn is divided into "bands." Each band is subdivided into a "grid" of individual wavelengths according to ITU-T standards. Three major bands are defined (the width and placement of each band is chosen because they deliver optimal attenuation behaviour; in other words the chemical composition of fiber is such that light signals come through stronger only in certain parts of the spectrum). So far three "bands" (S,L,C) are defined, although the most used are the C and L bands. Each band has 80 wavelengths defined, the spacing between wavelengths is 50GHz.
Reason for this standardised partitioning of wavelengths is, a nasty set of optical phenomena known as "non-linearities" creep in once you pack in too many wavelengths such that the spacing between wavelengths becomes too close. A major issue concerns optical cross-talk when wavelengths interfere with each other. The use of multi wavelength optical transmission is known better as WDM (wavelength division multiplexing) in industry circles.
Dispersion has always been a PITA for optical transmission, as it tends to limit the maximum transmission distance. At the same time it gets worse as the bitrate goes up, which is now a major barrier against long haul 40Gbps systems. The traditional way of combating dispersion has always been via dispersion compensation modules. In the past there have been creative efforts to design fibers with certain refractive index profiles such that dispersion is minimised or eliminated at certain wavelengths. But killing dispersion brings the non-linearity back up, which means a workable solution can't have the best of both worlds.
So far the most widely marketed field-ready WDM solutions has been around 160 wavelengths at 10Gbps per wavelength which would deliver 1.6Tbps on a single fiber. Alternatively there are labs which have demo'd 80 wavelenghts @ 40Gbps each. I'd be interested to hear of any "bleeding edge" capacity that exists today which is higher. Some engineering teams are already working towards 25GHz spacing, which would essentially double the capacities mentioned above.
By the way, Cisco is not exactly at the forefront of multi wavelength optical transmission among today's big-boy companies. You'll find better minds at work in companies like Alcatel, Marconi and (perhaps in former times) Lucent. Then again, Cisco has the biggest sounding trumpet out there.