BBC should not fund ISP network upgrades

Ofcom chief Ed Richards has told politicians that he does not believe the BBC should foot the bill for upgrading the UK's broadband infrastructure.

ISPs have seen dramatic increases in traffic since the launch of the BBC iPlayer causing capacity problems for service providers.

This has led to calls for so-called traffic shaping where control is exerted over the number of users visiting a network at any one time.

Service providers have also suggested that the BBC should pay a "congestion charge", citing Ofcom estimates that the cost of upgrading infrastructure to cope with increased traffic levels could amount to £830m by 2011.

However, in evidence presented to a joint session of the Commons Culture, Media & Sport and Business & Enterprise committees, Richards said that forcing the BBC to fund necessary network upgrades is not the best solution.

"It is not necessarily the only way it can happen, and it is not necessarily the way we anticipate it will happen," he said. "I am not convinced that the right answer is to get the BBC to pay for the iPlayer."

Richards maintained that a more sensible approach would involve a joint sharing of the investment by network operators and consumers.

He also believes that Ofcom lacks the power to force the BBC to fund next-generation networks.

"I am very sure that we do not have that power, and I am pretty disinclined to go down that route," said Richards.

See also:

US surfers watch 10 billion videos a month

Volume up 66 per cent year on year  16 Apr 2008

Highfield quits BBC to launch Kangaroo

ISPs rejoice, for the moment  14 Apr 2008

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