Perhaps one of the most revolutionary inventions in the human history, Internet has changed the way in which we interact with each other. From being used as a medium of communication, the Internet today is an integral part of businesses, the entertainment industry, education system, and governance policies. Increased adoption of Internet services has, in fact, turned it into an industry of its own, that too at a global level. According to procurement analysts at Technavio, the Internet services market will grow at a CAGR of 7% by the year 2021.
What is driving the Internet services market?
Though traditionally Internet services were developed over fixed line networks, expanding mobile network coverage has led to an exponential increase in the number of mobile Internet users. Governments around the globe too, are investing hugely in Internet infrastructure so that high-speed Internet can be accessed by all. Internet access not only enables efficient flow of information but has also made it easier to bring the masses into banking network and other government programs and policies. India, China, Brazil, and Vietnam are major users of the Internet services.
The emerging ecosystem of IoT, along with new Internet applications like wired (FTTH/FTTO) and wireless (4G, LTE, WiMax) networks are the other major drivers of the global Internet services market.
Major technological innovations in the Internet services market
Major buyers of the Internet services are looking for high speed and reliable services, that too at a low cost. Suppliers, on their part, are resorting to technological innovations to meet the growing demand of Internet. Some of the important technological innovations are:
Fiber optic network
Made of thin strands of glass or plastics, the fiber optic cables provide greater bandwidth when compared to metal cables. On an average, the fiber optic cables can allow data transmissions (up to 1 Gbps) with less attenuation, no interference, and high bandwidths. Also as these cables offer low power loss, they can easily carry information over very long distances; and thus are preferred by buyers. At present Google Inc. and Verizon Communications are two major suppliers of the fiber optic network.
IDSL technology
IDSL is an integrated service digital network-based technology, which provides always-on connectivity. Through this technology, information is transmitted through data network rather than carrier’s voice network. Being an always-on connection, IDSL technology eliminates call setup delays, provides flat rate billing, and delivers an Internet speed of up to 144 Kbps.
Cellular network
The cellular network provides wireless Internet access through mobiles. Smartphones, handheld PCs, tablets, and other mobile devices have resulted in innovations in this technology. Usually, the speed of the Internet in a cellular network varies depending on whether it is a 4G or a 3G network, as well as based on the service providers bandwidth. For instance, 3G network provides Internet speeds around 2Mbps and 4G network provides Internet speed around 25 Mbps. Vodafone Group and China Telecom Group are the major suppliers of the cellular network.
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