A document maintained by the Federal Networking Council notes that "Internet2 would solve
the current "chicken-and-egg" problem, where the telecommunications
companies are reluctant to invest in the next generation of network
technology until there is a critical mass of potential users." In late
February, the University
Corporation for Advanced Internet Development reported that over 120
universities had signed onto the project. With the assurances that the
Net could support more sophisticated means of information production and
distribution, it is likely that those universities, and others that will
follow, could increase the profitability of those new applications.