● 5G roll-outs provide mobility innovation and new levels of fixed/mobile convergence. By 2022, 22 percent of global Internet traffic will come from mobile (cellular) networks (up from 12 percent in 2017). By 2022, about 3 percent of global mobile devices/connections will be 5G-capable (and nearly 12 percent of global mobile traffic will come from 5G). As expected, mobile carriers from around the world are beginning to introduce trial 5G networks (see 5G Availability Around the World from Lifewire). Many industry experts believe that large-scale 5G deployments will begin to take shape in 2020, when mobile spectrum, standards, profitable business plans and other operational issues are more fully fleshed out.
In the past few years, service providers have observed a pronounced increase in traffic associated with gaming downloads. Newer consoles such as the Xbox One and PlayStation 4 have sufficient onboard storage to enable gamers to download new games rather than buy them on disc. These graphically intense games are large files, and gaming traffic will reach 4 percent of all IP traffic by 2022. Furthermore, these downloads tend to occur during peak usage periods, with gaming downloads reaching up to 8 percent of busy hour traffic. We expect the growth of gaming traffic to continue, and gaming is one of the forms of traffic that will limit the likelihood that video traffic will exceed the projected 82 percent by 2022.
In 2008 the state of New York passed a law asserting sales tax jurisdiction over Amazon.com sales to New York residents. New York was aware of Amazon affiliates operating within the state. In Quill Corp. v. North Dakota, the US Supreme Court ruled that the presence of independent sales representatives may allow a state to require sales tax collections. New York determined that affiliates are such independent sales representatives. The New York law became know as "Amazon's law" and was quickly emulated by other states. While that was the first time states successfully addressed the internet tax gap, since 2018 states have been free to assert sales tax jurisdiction over sales to their residents regardless of the presence of retailer affiliates.
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This article includes a general overview of types of affiliates and agreements. Every business situation is unique, so be sure to get help from an attorney in preparing any affiliate agreement. There may be "gotcha" clauses or language that you may not have seen or included. For example, if you are the affiliate, check to see what percentage of ownership, if any, the other company has in your business.
The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.
The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to the Prodigy Network.
Affiliates can be found all around the business world. In the corporate securities and capital markets, executive officers, directors, large stockholders, subsidiaries, parent entities, and sister companies are affiliates of other companies. Two entities may be affiliates if one owns less than a majority of voting stock in the other. For instance, Bank of America has a number of different affiliates around the world including US Trust and Merrill Lynch.