Internet service providers (ISPs) have argued recently that
companies producing content that makes heavy use of networks, such
as video, should help to pay to build the 'next generation' high
capacity networks that will be needed if the content becomes very
popular.
But Ofcom chief executive Ed Richards told a meeting of two
Parliamentary committees that producers of content should not be
forced to pay.
"I am not convinced myself that the right answer to that is to
get the BBC to pay for the iPlayer," said Richards, according to
press reports.
ISP Tiscali has said that the BBC in particular should help to
pay for upgrades because its iPlayer software, which allows users
to watch material after it has been on television, has proved
extremely popular.
The iPlayer has been used to watch over 40 million programmes
since December, and 12 million in March alone. ISPs argue that such
popularity is putting a strain on networks.
Earlier this month, Tiscali's Simon Gunter spoke of his concerns
on BBC Radio 4's Today programme. "The BBC would like us to pass
all those costs on to the end user, i.e. our customers, the
consumers of that product," he said. "And our view is that 'should
we pass all those costs on to the end user or should we seek to
somehow share those costs with the content originators?'"
Ofcom's Richards seemed to back the content producers in
addressing the House of Commons Culture, Media and Sport Committee
and its Business and Enterprise Committee. He said that a levy on
content producers is "not necessarily the way we would anticipate"
that investment would be raised for improved networks.
ISPs, who already operate in an extremely price competitive
market, are reluctant to increase prices, but Richards told the
Committees that price rises for fast connections were likely.
Though Tiscali had singled out the BBC, ISPs are facing a fast
growing use of video content as network speeds make the watching of
online video practical for the first time.
Sites based on short, low-quality clips such as YouTube have
been popular for some time, but growing usage of services such as
the iPlayer and Channel 4's 4oD on-demand viewing service are
growing as network capacity grows.
Some experts have warned that increasing use of the internet for
video content worldwide could make networks grind to a halt, though
others argue that the internet's main constituent parts have
sufficient capacity for some time in the future. Most experts agree
that any deficiency will be in connections between homes and the
nearest point of access to more major network points.
