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View Full Version : Why Have Broadband Packages Become Increasingly Complex?



Neo
29th January 2011, 10:28 PM
With the internet becoming all-pervasive in our lives, we are witnessing a growing dependence on the information and services delivered to us via this medium. In short, the internet is changing the way in which we live. This is partly driven by corporate forces. Commercial entities have increasingly embraced the provision of internet services as this permits them to reduce operational costs. Large organisations, such as insurance companies, offer inducements to those of us who are willing to sign up to our policies on-line. The cost savings to the customer are possible because information presented via electronic media does not need to be uploaded manually by data-entry personnel. Essentially, customers are alleviating the administrative burden previously placed on the vendor thereby significantly reducing the amount of money they have to pay out in order to win our business. Salaries are usually the largest cost borne by an organisation, and so this development is profoundly important in terms of increasing cost efficiency.

Some would argue that the savings achieved by the vendor are due to increased costs attributed to the buyer. Buyers are required to pay for internet provision in order to benefit from the discounts awarded by the vendor, thereby removing some of the cost of technology formerly borne by the vendor. But, as we are liable to be paying for internet services regardless, it remains an invisible cost to the user.

Interestingly, it is these kinds of development that are bringing about a convergence of technology. Systems that used to run independently of each other are now growing increasingly interrelated. This has never been more true than of media services and the communications industry. Technologies that formerly only permitted output, such as TV media companies and newspapers, are now increasingly providing services that permit consumer input. For example, consumer feedback has been taken to new heights by printed media formats, with newspapers increasingly offering the reader their say via myriad internet based forums. Information gathering in this way permits news agencies with invaluable information. Not only does it promote greater levels of brand loyalty and permit vendors to constantly assess the preferences of the readership, it also provides them a free means of news gathering, (although volumes of reader feedback are consistently increasing, placing a greater demand on information filtration, which is a cost increasing exercise). And, as internet based information is open to all, it means that users feedback can be accessed by the competition also.

TV media networks have always been tightly interwoven with news media. It is therefore no surprise that this is where the greatest level of technological convergence occurs. Being a technological industry itself, it stands to reason that it would ultimately extend its remit to incorporate the provision of internet services to the user. Using existing physical networks, companies such as Sky can deliver internet services without incurring too much extra cost. This development means that broadband packages can include evermore options, combining internet access with telephone calls and the provision of TV channels, making them more complex to navigate and compare.