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Is The Internet A Commodity Or A Differentiated Product?


Is the internet a commodity? Well, anything that is produced to be sold or exchanged in the market is a commodity. Right? It’s either you or your business or company that is paying the internet provider for that internet for you to use. When you are using the internet, in some way, you’re using and paying for the installation, maintenance of the internet equipment, and configuration. 

For some individuals or businesses, the internet is as essential as electricity or a machine. Nowadays, you can’t run a business, no matter how small or big, without the internet. The internet is what connects you with others. It is crucial for your business for promotions, connecting with other businesses and customers, and much more. 

According to the market exchange, access and distribution of the internet and the worldwide demand highly suggests that it might fall under the commodity head. But there is still doubt if it is a commodity or just a differentiated product. It is a great leveler that gives your business a chance to be in front of a worldwide audience. 

However, if this simple question is answered, then there will be many changes in the internet commodity market. New rules will be implemented and businesses will make changes to their business models. It might not be as easy as it sounds. It is a bit complex. The Telecom industry, media, and technology will be changed after the debate ends on the internet commodity.

Suppose the internet commodity is a thing like electricity. You would not be able to select the kind of package you need. In other words, you can’t pay for better service since all the services will be the same, just like how everyone pays the same for the same electricity. The data you are using and the data your friend or rival is using are the same. The only difference now will be how much data you are consuming. 

Everyone has a different internet demand. An individual may be satisfied with a normal speed internet service, while on the other hand, businesses or organizations need faster and better secure internet service. The change in demand switches here, which reflects in the change in the price of the internet services. It varies in terms of customer service, data service, and speed. Every business model is different from one another, so the demand also varies accordingly. 

So, unlike electricity, which is a commodity that helps us use the internet. The internet cannot be a commodity since the infrastructure it needs isn’t as globally wide to satisfy our internet connectivity needs.

Internet changes from provider to provider

Business Internet. 

Business internet is different from your normal home internet. This comes with faster speed, security, and better customer service. Poor internet service can be very bad for your business. Imagine it’s the peak time of the business day, and the internet speed dips. It can be very frustrating and catastrophic for the business.

Business internet provides data service from 10 Mbps to 600 Mbps, but sometimes there can be issues and you only get half of the service offered. If you are using the home internet for your business, it won’t do you any good. The speed and data security will only harm the business.

Business Fiber UPN. 

UPN (User Principal Name) users experience the same speed regardless of the time of the day and internet traffic. The SLA-based services (Service Level Agreement) provide the same level of download, upload, and deliver the latest best business performance. 

With a UPN-based network service, the infrastructure allows the enterprise and the clients to connect anywhere and anytime. 



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