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Get people to pay for content
Ads won't go away because people will not pay for something they can get free (I have an office full of people that will not pay $0.99 for a game). You can upgrade network equipment all you want, but bandwidth takes up frequency spectrum and that is limited (which is why the FCC can auction off blocks of spectrum for BILLIONS of dollars). Investing heavily in equipment drives up the cost of the service and most people are unwilling to pay more than they already are.