BBC boss: Internet TV would drive up broadband costs

A British broadcasting executive has dropped the other shoe: "Once we start seeing IPTV take off, we will see the cost of broadband decommoditizing."

BBC Director-General Mark Thompson, in making the comment at the Royal Television Society's international conference in London, was stating aloud what everyone has been whispering. To paraphrase, despite what over-the-top proponents believe, there is no such thing as a free lunch; cut the cable TV cord and you'll just end up paying more for the cable broadband cord.

Thompson suggested that ITV demand might lead some broadband providers to develop service tiers: one level for normal everyday broadband connectivity, another for optimized connectivity to receive enhanced over-the-net TV services.

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