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Five Practices that will soon be affected by a form of obsolescence

Four of these will be influenced by the increasing penetration of internet services globally.

1. Digital Video Broadcasting.

  1. The practice. Many television programs and news are beamed to satellites which are then received by satellite dishes and downloaded through decoders for viewing on television sets. While some are “Free to Air” many others are encoded.
    Viewers will have to pay a subscription to enable the decoding.
  2. The change. While video broadcasting may not go out of fashion soon, the means of delivery by satellites, and reception through the use of dishes may change. In an age of podcasts, videos of movies and news items becoming available on the internet, on line events, and increasing internet penetration, the preferred delivery medium may eventually turn out to be the internet.
    Computers and mobile phones may replace the decoders and/or complement the television set.
  3. Implication. It may be too premature to predict the death of domestic satellite dishes as they are also still being used for internet access. However, the increasing sophistication of mobile telephone services, with the fourth generation (4G standard) becoming more widely accepted, the terrestrial may eventually eclipse the celestial alternative, with the probable exception of some remote third world locations.
  4. Action Required. Movie and television companies must immediately explore the prospects of delivering their services through internet websites.

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2. International and Long Distance Telephone Services

  1. The practice. Local telephone companies pay carriers to forward calls to destinations outside their operating bases or influence. These carriers, in turn employ several means, which include trans continental marine cables and satellites through which the calls are forwarded to the distant destination.
  2. The change. With the development of internet networks and services, calls can be passed through the networks to the desired destination through “Voice over Internet Protocols” (VoIP).
    Email messages would then be the preferred method of quick messaging over SMS (Short message systems).
  3. Implication. As the internet networks get bigger bandwidth, voice calls become clearer, and documents are sent as email attachments with resolutions far exceeding what can be currently obtained with faxes, the carriers will have to compete by having to reduce their charges in line with the internet induced change.
  4. Action required. Telephone companies should spin off internet and broadband service providing businesses to compete with them (the telephones companies themselves), even when it appears to constitute a conflict of interest.
    Customers would prefer sending emails which allow more expression than SMS (also known as text messages).
    Who knows! These new spinoffs may be their survivors.

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3. Travel Agents and Booking Offices

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  1. The practice. Intending travelers approach a travel agency who log onto airline networks to book and confirm flights. Tickets are then issued while the agency is paid a commission.
  2. The change. With faster internet access, any one can visit Airline websites, make reservations and pay for tickets online. The printout is fast replacing the traditional ticket. Tour packages, which are increasingly being advertised online, offer better value than what most travel agents provide. In fact, many act as agents for these online offers.
  3. Implication. Travel agencies may eventually only service those without internet access. With increasing penetration especially on phones, their client base can only get thinner.
  4. Action Required All Travel Agencies must establish their presence on the web and offer more innovative products if they are to remain in business.

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4. The Regular Office

  1. The practice. An office usually contains an army of employees including secretarial and professional staff, depending on the operations and size.
  2. The change. An increasing trend, again, with the internet, is that most of these workers do not have to be physically present at these locations. A set of workers may serve several companies with the same registered office, while professional work may be outsourced.
  3. Implication. This will naturally affect the rates at which businesses hire new professionals as many more engagements could be carried out through the internet. Retired professionals may still find themselves active, even from home.
  4. Action required. Business people and Professionals must start structuring their businesses in a way that will make it function in line with the internet revolution.

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5. Energy Production.

  1. The practice. Most of the energy produced in the United States is from fossil fuels. A rise in oil prices puts pressure on energy prices.
  2. The change. Wind energy farms are popping up all over Europe and China and plans are on to start these off the shores of the Americas. Solar energy panels are also becoming more efficient and less expensive.
    The United States Department of Energy is giving tax credits to homes and businesses which make use of renewable energy.
  3. Implication. One must learn from the history of PCs. At a time, they seemed too underpowered to eventually challenge the mainframe computers of those days. If (or rather, when) the wind turbines and solar panels become cheaper (as a result of large scale production) and more efficient designs, many homes and businesses may produce their own electricity. Energy companies will be left to figure out how they can compete, especially when oil prices rise as running costs for solar and wind energy is low, compared to the cost of fossil fuels.
  4. Action required. Energy companies must research into how they can produce affordable clean and renewable energy. The capital costs involved will not remain high for too long, as large scale production increases.
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