Technological advancements are being introduced at increasingly fast rates around the world. Several companies, especially those operating in the Information Technology industry, have had to make adjustments to their strategies because being there first can identify you as a revolutionary organization that is known for innovation. Whereas getting there a bit late can label you a follower, which is a label that is extremely hard to shrug off.
As technology advances, examples being cloud technology, an increase in viewers of online television and online gaming follows, and an apparent need was identified by the FCC for significant enhancements in the infrastructure of internet providers to support such advancements.
How Does the Initiative Affect You
Although the advantages are easy to identify, the cons of the operation are minimal but they do affect most consumers. Internet providers are now going to have to make further enhancements that may not have been deemed necessary to sustain, or promote, their business for at least a few more years to come. However, this initiative launched by the FCC requires them to fast track these enhancements, which are unplanned, and rather significant investments for a majority of the internet service providers.
The bottom line is that this investment, although it is one that would very probably be lucrative and beneficial for these organizations in the long run, would most probably have to be incurred by you, the consumer. Most organizations would incur a massive cut on their short term profits. This hit couldn’t have come at a worse time, especially because some of these organizations, who didn’t have much to show their shareholders during the recession, were finally looking to show profits and make up for lost revenue.
But now, with the FCC initiative in effect, these organizations are anticipating at least a couple more quarters, if not more, of slim profits. To increase their margin of profits, these organizations are most likely going to revise their pricing strategy, even if it means the loss of a few customers here and there.