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Will Telecoms Get Left Behind with New FCC Standards?

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Will Telecoms Get Left Behind with New FCC Standards?

January 28, 2015

  By Susan J. Campbell, TMCnet Contributing Editor

In a society of free enterprise, there are a number of different opportunities for the entrepreneur. If you have an idea that you believe will turn into a product or service for which people will pay, you can open your doors and start marketing that product or service. Yes, there are a few details skipped here, but the point is you have the opportunity. The only time that opportunity tends to get blurry is when the government gets involved.

Government involvement is not always geared toward limiting corporate power. At times, the intent is to protect the consumer. When lobbyists, money and special interests are involved, however, it becomes more difficult for the public at large to see the government working in their favor (i.e. – the Affordable Care Act). If the Internet is involved, it’s bound to draw the attention of many, including the leading players in the master agent space.

A recent FCC (News - Alert) decision has telecoms scrambling to figure out their next move and digital content publishers, such as Netflix, celebrating that which is to come.

According to a recent post in The Motley Fool, the FCC wants faster broadband, to the tune on 25 megabits download and upload speeds of 3 megabits or more. The current standard: download speeds of 4 megabits per second and upload speeds of 1 megabit. The standards for “acceptable quality of service” are supposed to be updated every four years, with the last update in 2010. It’s more than time to revisit.

Plus, redefining these standards also impacts federal funds for rural broadband installations. This is enough to make Internet service providers throughout the nation sit up and take note. For cable providers, their systems are already designed to handle these kinds of speeds. For telecoms relying on DSL technology, the design was never means to support ultra-fast connections. There are modifications that can be made, but they only place a Band-Aid on a gaping wound that could jeopardize the future of that telecom.

The answer for many is in fiber. There are modifications available here as well, but it will really only give the telecom time until the next four years roll around and new standards are put in place. The ideal scenario is one where the telecom updates their system to reflect new standards and meets with consumer demand.

The master agent can play a significant part in the process, providing guidance where needed, and access to the technologies and partners that can drive innovation. The first hurdle to overcome, of course is absorbing the cost with hope for increased business in the future. It is a risk, but one with the potential for much better opportunities down the road. Change is certainly coming. Whether it will be as drastic as the FCC wants or a simple bump, the reality is telecoms will have to adapt or get left behind. 

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