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HDTV Content To Push Up ISP Prices

Posted: 10th Jul, 2006 By: MarkJ
A new report by the IP Development Network has warned that ISP's could be forced to raise their prices as High Definition (HD) TV and video content become more popular (users consume more data):

The IP Development Network claims a two-hour HD movie, of around 9GB in size, could cost an Internet service provider (ISP) as much as £21.13 to transmit via IP streaming. This is more than many broadband users pay each month, and could mean the ISP forces the customer to bear the cost.

Even if the ISP has the money to invest in local loop unbundling — whereby it installs its own equipment in a BT exchange rather than buying its connection through BT Wholesale — that movie could still cost the ISP £2.10, says the report.

The report's author, Jeremy Penston, said that the current evolution of content means "it is out on the Internet and not in the control of the ISP".

While we think that HDTV, due to its infancy, will not be a major problem for a couple of years, the report is broadly correct in terms of predicting growing online content consumption.

Many TV broadcasters have already launched streamed multimedia services, with more video on demand style products to follow. It is only logical that users will consume more data and many, especially those on cheaper broadband options, may suddenly find themselves in conflict with the ISP's imposed restrictions. More @ ZDNet.
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