Net video to fuel broadband prices

The BBC's iPlayer service offers high quality video-on-demand

Demand for online video could lead to a huge rise in broadband costs by pushing up network congestion and forcing major infrastructure investment by providers.

High-quality video services like the BBC's iPlayer and Channel 4's 4oD require far greater bandwidth than lower resolution sites like YouTube and Google Video. Internet service provider Tiscali says that the iPlayer uses 30 times more bandwidth than the average YouTube clip.

The BBC said that the company was in regular contact with ISPs and would continue to monitor the costs of video services.

But the UK broadband market is already structured around package deals which limit consumer bandwidth, so the protests may be motivated by a desire to profit from technically-demanding third-party services, said Ovum analyst Jonathan Coham.

'ISPs are certainly concerned about bandwidth usage, but they are already covered by their pricing packages,' said Coham

'Rather than kicking up a fuss, the ISPs should be looking to launch their own video-on-demand services,' he said.