December 30, 2007

High-bandwidth content providers asked to share broadband costs

As cheap broadband is a reality only when you go for entry level packages, high level packages that come with better speeds and download limits always sound expensive for many users. Unlimited broadband packages allow the users to download as much as they want during off-peak hours, but the speed gets reduced to half when compared to usual hours. Naturally, lots of broadband customers grumble when the ISPs put some cap on their usage or when they reduce the speed at specific times.

The issue of pricing has become so much complex for the broadband providers on the arrival of high bandwidth services like IPTV and online gaming websites. These applications demand high bandwidth and can cause congestions at times so this leaves the ISPs to prioritize the traffics with their tailored packages as done by PlusNet which launched its Pro package exclusively for gamers.

Many feel that ISPs can either make these packages a bit cheaper by passing a part of the cost to the content providers themselves. Tiscali was one of ISPs who raised concerns over bandwidth when BBC iPlayer was launched this year pointing out that it may lead to bandwidth crisis on the line.

BBC online news reports Simon Gunter of Tiscali as saying, “We have to handle much more video and the question is - how do we square the costs of distributing lots of content? We could look to minimise the costs of distribution and in that the content originators may need to contribute."  He further says that ‘demand for bandwidth driven by innovative applications will always outstrip the physical and economic supply of network.’

Prioritizing certain traffics such as VoIP or online gaming can relieve customers of some costs, however, how these tailored packages will be received by the customers in long run is going to be a question, according to Ian Fogg of Jupiter Research firm. He feels the concept of packaging is what internet is all about – access to all websites with equal service quality.

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