February 23, 2010

The Immanent Bandwidth Cap Wars

As internet service providers begin to offer their customers faster speeds, a new area of competition is underway. Initially, there was a race to provide the fastest possible internet service. Of late however the speed race has outpaced the abilities of computers. This created a new variable for internet service providers. The bandwidth cap is rapidly becoming the new battlefield over which companies will compete.

There are market price limitations on monthly bandwidth. While customers may feel that there is a big business conspiracy preventing them from getting the bandwidth they want at a reasonable price, in reality there are considerable hardware costs involved in getting data to your computer at any reasonable speed. However, prices are usually determined by the cost a customer is willing to shell out for a product. As it stands, the costs being charged by most internet service providers meet the needs of consumers. However, a change in consumer behavior looms on the horizon that inevitability threatens to annihilate the present comfortable foundation on which service providers build their business plans. The average consumer will inevitably want to watch HD television content on their computers. This will spell the end of television as we know it.

While cable companies might have an interest in forestalling the inevitable by limiting monthly bandwidth, they will be unable to force this price control on the market indefinitely. Wireless internet is being made available nearly everywhere at lightning fast speeds. This will make it nearly impossible for this media transition to be prevented by any company.

This will be great for the consumer. As companies start to advertise that they will give you more bandwidth for your money, these caps will increase very quickly. Companies that provide hardware to internet service providers will be forced to lower their prices in turn. This is how markets function.

With all of the different methods of transferring data, there needs to be a huge focus on value. For the user who plans to view high quality videos, this will represent a dramatic improvement. High quality content inevitably leads to higher bandwidth demands.

Higher bandwidth limits will also affecthave an impact on the quality of content that is created. Most current media files must be compressed to meet bandwidth limits. When it becomes possible to send more data faster, these limitations will melt away. This could lead to new advancements in music storage software. Why not create massive music files if they can be transferred very quickly? The same logic would apply for video files and any other content that people may attempt to share online. If distributers can deliver bigger files, then movie files will be available in better quality. Over time this will allow for serious growth in the quality of audio and video files.

Online games will participate in this boom as well. As data transfer rates explode, you can expect game developers to take advantage of all the newly available bandwidth. Online games may never require the same amount of bandwidth as streaming video or music, but the extra capacity can surely be put to use in some way.

There is an exciting future for online content. While some whine about current bandwidth caps, we are not far away from an all out race between providers to deliver the best value for the money. In the end, this will mean great things for the consumer of high quality online content.

Geek Choice understands that everyone enjoys high quality video and audio. As a nationwide computer repair company, we work very hard to help people enjoy their PCs. If you are having problems with your media center PC, call our office at 1-800-GEEK HELP (433-5435).

Filed under broadband Internet by amauser

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