BBC: YouView likely to drive broadband prices up

The BBC’s director-general Mark Thompson has admitted that widespread uptake of internet TV will probably result in a hike in broadband prices in the UK.

He told the RTS that when services such as YouView and Apple TV arrive on the scene, it won’t be long before there is considerable consumer demand for Internet TV. Thompson suggests that while it might give ISPs ‘the excuse they’ve been looking for’ to shift broadband prices away from the ‘all you can eat’ model, it will potentially also necessitate the investment in next-generation broadband services which the country needs.

While Thompson clearly thinks ISPs will use the massive expansion of internet TV to unjustifiably raise prices, strangely he then suggests there is a silver lining in that their increased profit means they will invest in more broadband infrastructure.