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April 24, 2008

VOD could mean higher broadband prices


by David Allen

As Video on Demand increases, the internet could soon become a primary source for many users’ entertainment needs. This sort of traffic could not have been predicted several years ago and so the way that the whole network has been set up will probably need to change.

The main concern coming from the internet service providers is increased traffic. There have been many calls for the likes of the BBC whose iPlayer has proved to be such a success, to contribute to the costs that the extra traffic has created.

But it is not likely that a content provider is going to pay to place their content onto the internet, so this is going to leave the ISPs’ only one option left, the customers are going to have to make up the difference.

However this could cause so many problems for the regulator, the ISPs and the consumers too. How a re-pricing of broadband services would happen and what the pricing would be is anyone’s guess.

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1 Comment »
  1. Content providers already pay (quite a lot of money in the case of video) to put their content online.

    This is just a case of ISPs wanting to be paid for bandwidth being consumed by customers of other ISPs.

    Comment by Stephan Sokolow — April 25, 2008 @ 9:18 am

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