Effects of Inflation on the Internet

With so much important stuff dependent on the internet today it is essential for everyone to have a good and stable internet connection. But looking at the situation of the internet market today, it’s quite unfortunate that prices have only increased in the past couple of months.

The internet has become an essential service today, no questions asked. That’s due to various reasons and has mostly happened due to current changes in the socio-economic environment of the world. In all this, the pandemic played a major role, as it was the catalyst that soared, the popularity of existing technology like the internet, to the roof. 

With limitations being placed on physical mobility, it was only thanks to the internet that the world remained functional and some kind of normalcy remained intact. As the internet provided us with virtual means to do things that weren’t possible to carry out physically during the lockdown.

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Some major examples of this are the work-from-home trend and the continuation of the educational infrastructure through online classes. These two factors alone contributed majorly towards the stability of the world as it was only because of practices like these that the corporate educational systems survived in the uncertain time of the pandemic and saved the livelihood and educational careers of many.

These were just two of the many other fields that the internet helped uplift in this time of crisis. This is why the internet was granted the status of an essential service at that time, and governments of the world stepped in to provide financial aid to users so that they can have a stable internet connection along with other essential services like food and water. 

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Providers also chimed in during the pandemic and offered discounts, promotions, and extended bill payment deadlines to assist users to afford their internet connections. This directly resulted in steps taken by providers like Cox as they slashed the prices on the Cox internet plans. But the thing now is that with the situations returning to some form of normalcy the price of the internet has also started increasing again, which can be a reason for concern.

This is because companies think that the peak time of the pandemic is almost over and it’s time to recover from the financial hit that they suffered, but this business mindset is quite wrong. Not only is the pandemic far from over, but the world is still recovering from the economic recession that it went into during the times of the pandemic. 

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Why the Internet Should be an Affordable Service?  

Although the invention of vaccines and strict social distance practices have curbed the intensity of the pandemic, it is still far from over. One more thing is that the practices we picked up during the pandemic have become a norm now.

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An example of this is the hybrid work model in which employees have the option to work from home on certain days of the work week. In some places this is an option, however, most modern corporate offices have made this policy mandatory. 

The same is the case in the education sector where many students who don’t have the access to their educational institutes have adopted remote education as their primary mode to learn stuff and earn certifications.

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With so much important stuff dependent on the internet today it is essential for everyone to have a good and stable internet connection. But looking at the situation of the internet market today, it’s quite unfortunate that prices have only increased in the past couple of months. 

People still aren’t fully recovered from the economic setbacks that they bared during the pandemic and they are in no financial state to afford costly internet. So now the dilemma is that there is no option other than getting a good internet connection and people don’t have the necessary resources to afford one. 

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Increasing Price of the Internet due to Inflation 

However, the increase in the prices of the internet is also due to the recession in the economy from which the whole world is suffering. NASDAQ has dropped and shares of companies like Amazon, Netflix, and Tesla among many others are down, then there is the ongoing Russia-Ukraine conflict which isn’t looking to stop anytime soon, which has created a shortage of oil thus surging its prices.

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In times like these, inflation was quite obvious to rise and this rising inflation has affected the cost of every commodity and service, the internet is no different. But still being an essential service now it’s the job of the governments and relevant stakeholders in the telecom industry to facilitate the users and bring down the price of the internet because it’s no longer a luxury but an integral part of many important and sensitive tasks.

Special Discounts by Service Providers 

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Despite the increase in prices, not all hope is lost because even today there are internet service providers that are offering special low-income packages to different sections of the society to help them to afford good internet.

The most notable ones are Spectrum and Cox. Where Spectrum low-income plans select houses with users that are on a governmental assistance program and helps them with a good internet connection at a very low cost. In this package, not only do users get high speeds but unlimited data and a free modem included as well.
  
Similarly, there is Cox Communications that offers their special Connect2Compete program for families having at least one student studying in grade range K-12 and enrolled in any of the many government assistance programs. In Connect2Compete users get high-speed internet at a very low cost specifically to assist students with their education.

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Conclusion

There are no second thoughts about it that the internet has transformed into a necessary service considering its crucial role in our current environment. But again the rising prices of the internet due to inflation have raised concerns for a majority of people that are already struggling financially. This is why relevant stakeholders and service providers must take necessary steps to ensure affordable internet for everyone  
 

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