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Net neutrality will shape US internet infrastructure

Wednesday, January 7, 2015

Significance

Live sports is the most profitable part of the television industry. Its place as part of cable TV packages has prevented many US households from switching to lower-cost internet-only subscriptions. In the United States, internet infrastructure -- the physical cables connecting homes and businesses -- is almost all built and maintained by cable companies and telcos that provide internet and TV. Thus, alternate entertainment delivery mechanisms and political debates about cable monopolies determine the technology underpinning the US economy.

Impacts

  • Over the medium term, telecommunications companies will shift resources to mobile products to offset losses in home service.
  • Wireless broadband could drive down costs for US farming and promote 'smart cities'.
  • Mobile internet investment could be boosted by the potential for rapid revenue growth, unlike landline service.
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