Broadband: BBC license fee killer?
Aug 18, 2010 Digital Divide, Government, iPlayer
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Earlier this month a discussion broke out in the industry in response to the publication of a report by David Graham from the Adam Smith Institute. Mr Graham’s report suggests universal broadband will lead to the abolishment of the BBC’s license fee and he argues that this will be a positive move as it will force the BBC to become more competitive.
- adamsmith.org: Global Player or Subsidy Junkie? Decision time for the BBC
Elsa Chen, General Manager
Whilst I agree in theory that abolishing the license fee would force the BBC into providing a more competitive and therefore hopefully higher quality service, I struggle to believe that broadband will be the catalyst for this.
Firstly despite the promised, yet now delayed, 2Mbps USC the UK is still a long way off enjoying truly ‘universal’ broadband, especially at the speeds required to easily support IPTV services. Besides which even if UK residents had universal access to high speed broadband they would still (currently) be legally required to purchase a license if they intend to watch programmes as they are broadcast (e.g. streaming). Although, a license is not required for ‘on demand’ services (e.g. BBC iPlayer).
Tags: Digital Divide, Government, iPlayer
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Loading ...ISPs vs BBC iPlayer – Missing the point?
Jun 25, 2009 Featured, Net Neutrality, Wholesale, iPlayer
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The last month has seen substantial media coverage of the latest row that has erupted between BT Retail and a number of content providers including the BBC. However, we think a fundamental issue is being missed. Instead of BT Retail focusing attention on the BBC et al to contribute to its increasing costs, it should instead be tackling its wholesale provider to reduce the price of bandwidth. Here I explain why this has a wider significance to ISPs and the industry as a whole.
June 2009 proved to be a turbulent month for two of the UK’s industry giants, BT and the BBC. The month began with reports that BT was throttling its option 1 customers’ connections to the BBC’s iPlayer service (and other bandwidth hungry services including YouTube) during peak times, reducing speeds to less than 1Mbps on the advertised up to 8Mbps service. This, according to the BBC, notably affected the iPlayer’s service quality.
Neil Watson, Technical Support Manager
- BBC: BT accused of iPlayer throttling
- BBC: iPlayer: BBC v BT
- ISPreview.co.uk: UK ISP BT Broadband Restricts iPlayer and YouTube Speeds
The argument escalated when the BBC claimed that BT’s advertising of its option 1 package shied away from detailing this level of throttling. Instead it states that the package is capable of 25 hours of iPlayer streaming and only refers to the throttling in its FUP.
By mid June the plot thickened with a request from BT for content providers to pay towards the cost of delivering customers to their sites, claiming that the “free ride for content providers was over”.
“We can’t give the content providers a completely free ride and continue to give customers the [service] they want at the price they expect,” said John Petter, managing director of BT Retail’s consumer business.
(9 votes, average: 3.67 out of 5) Loading ...USC: Solving the digital divide?
Jun 17, 2009 Copyright, Digital Divide, Featured, iPlayer
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Updated 26th August 2009:
It seems the government has proposed a controversial amendment to the Digital Britain report. The disconnection of illegal file sharers was originally ruled out in favour of warnings and technical measures but it now appears to be back on the agenda. You can read more about this here:
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The Digital Britain final report has now been released by Lord Carter and outlines Government’s plans to introduce a new Universal Services Commitment (USC) ensuring 100% UK broadband coverage with speeds of at least 2Mbps by 2012. The existing USC which applies only to BT and Kcom will be replaced and the burden will be shared by the industry as a whole.
Darren Farnden, Marketing Manager
- Digital Britain: Final Report June 2009 (PDF)
- Digital Britain: Impact Assessment June 2009 (PDF)
The long awaited report confirms the ongoing speculation of the 2Mbps USC and confirms that this will be achieved by a number of technologies including home wiring improvements, Fibre to the Cabinet (FTTC) and mobile and satellite solutions to reach the most remote areas. Over recent months there has been mounting speculation as to how this expected USC would be achieved and funded. Possibly the most shocking outcome of the report is the news that public funding will be used to find the most cost effective technology to bring 2Mbps broadband to the UK’s ‘not-spots’.
- The Register: UK to rely on mobile operators for universal broadband
- Thinkbroadband.com: Budget announces 2Mbps USO but who pays?
- The Register: Darling supports broadband by raiding Granny’s digital fund
- Thinkbroadband.com: Lord Carter backs mobile and satellite for rural areas
We’re pleased to see that Government recognises the importance of improving customer experience to all areas of the UK. However, if customers in more rural areas are to actually enjoy the same level of service as those in urban areas then achieving 2Mbps really must be viewed as the first stepping stone. Lord Carter clearly concurs with this view, stating his reasoning for the 2Mbps limit is based on “current consumer expectations, the growing importance of video and increasing multiple use in the home.” He continues “At 2Mbps, all homes should be able to fully benefit from the most basic range of applications, services and opportunities offered by broadband.”
Tags: Digital Britain, Digital Divide, Ofcom, USC
(2 votes, average: 5.00 out of 5) Loading ...ISPs vs iPlayer: Round 2
Oct 14, 2008 File Sharing, iPlayer
2 Comments
As the popularity of bandwidth intensive applications such as iPlayer, YouTube and podcasts increase, have the ISPs that previously benefited so well from their dirt cheap broadband, unlimited broadband and even free laptop offerings punched too much above their weight?
Steve Lalonde, Chief Technical Officer
In the red corner…The ISPs!
For a long time now large, end user focused ISPs have invaded the market with extremely price-competitive offers that have undoubtedly brought down the average cost of broadband. A significant benefit to the end user you may argue and we agree. No-one denies this was a successful customer growth strategy but is it a sustainable business model?
Apparently not! As the likes of PlusNet complain that their average cost per user has tripled since the launch of the iPlayer and other leading ISPs approach the BBC for funding to off-set their increase in costs, Entanet asks what’s all the fuss about?
Tags: Bandwidth, iPlayer, Unlimited
(20 votes, average: 3.25 out of 5) Loading ...
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