Q13 - There's plenty of research to show that demand for online video and TV services (e.g. YouTube, BBC iPlayer, SeeSaw) is growing at an exponential rate each year. Some ISPs, especially the largest providers, are finding it hard to keep up with consumer demand and appear fearful of the threat to their bottom line.
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The situation looks set to get more complicated next year when YouView (Project Canvas), a supposedly open UK broadband TV standard, finally surfaces. BT Wholesale has already announced a new Content Delivery (CDN) platform to help, although that is unlikely to solve all of the problems. What is the best solution to this issue and, crucially, can it be tackled without sacrificing the principal of Net Neutrality, which seeks to treat all internet traffic as equal?
Q14 - Ofcom recently proposed to remove restrictions on your ability to bundle services (e.g. broadband and phone), which was imposed after the regulator found that KC still had Significant Market Power (SMP) in the Hull area. Since then KC has opened up a little, although some of your customers still tell us that they remain disappointed at the lack of non-KC choice in the area and feel that this is a potentially more significant disadvantage than not being able to buy slightly cheaper bundles. They fear that softening regulation could in fact prevent more competition in the area. Rival ISP TalkTalk recently commented, "Allowing KCOM to bundle telephony and broadband will only serve to damage if not completely destroy any prospects of competitive retail market entry into Hull." How does KC respond and address such clearly important concerns?
[ISPreview Editors Note: Since first asking this question Ofcom has officially allowed KC to bundle broadband and phone services in the Hull area (news article). However rivals point out that while KC does offer some degree of wholesale solution, there remains no effective equivalent of BT Openreach's WLR3 services, or even SMPF/MPF wholesale access. This is the primary reason for many operators choosing not to enter the market] End. ISPreview.co.uk would just like to thank Nick Thompson for taking the time to respond, especially considering the occasionally sensitive nature of our questioning.
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