Compression algorithms must not lose too much detail in compressing the data. Also, they must be fast enough to support live video, real time sound, and interactive transmissions. Since packets are sent over the Internet with no guarantee of arrival, the contents of latter packets cannot depend on the contents of earlier packets. This eliminates many efficient compression algorithms. Compression algorithms need to be customized to best support a specific multimedia application.
Cost is the main hindrance to increasing bandwidth for many organizations.
Each device and medium transmitting data over the Web has an intrinsic amount of latency associated with its operation. A typical Ethernet connection has a latency of about 0.3 msec, a typical modem link's latency is around 100 msec, and ISDN has a latency of about 10 msec. The total latency is dominated by this number, and the 100 msec latency due to the modem has a small effect on the total. The latency of network devices affects the transmission times of small amounts of data much more significantly than the transmission times for large amounts of data. Improvements in design and technology will reduce latency.