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(28-06-07) - We could be heading for a two-tier broadband market where broadband providers increase profits by charging both customers and individual websites according to research published this week.
The report by Jupiter Research suggested that because of the tight profit margins many ISPs face, they could soon be tempted to streamline those websites that are willing to pay extra for faster access to end users.
This means that providers would be charging at both ends of the spectrum - one fee for consumers and another for websites, internet telephony (VoIP) providers or online gaming servers.
Providers already have the technology to do this as many already restrict the bandwidth to peer-to-peer network and other guzzlers as part of their fair usage policies.
However, researchers advised that this could alienate some users - especially early adopters of new technologies who tend to need more bandwidth than the average broadband user.
Analyst Ian Fogg warned that consumers are already concerned about the lack of transparency regarding providers and their actual broadband speeds. He said: “Whether they are doing deals with websites or hindering potentially competitive services, they have to be absolutely clear. Consumers need to know that they have access to everything or not so they can make a fair decision about which service to use.”
Chris Eagle, commercial manager at BroadbandChoices.co.uk added: “While this might have an eventual knock-on effect for consumer prices, broadband speeds are increasing all the time so it is unlikely that many websites or VoIP providers will be willing to pay up.
“However, the report makes valid points about transparency in the broadband market. Increasing numbers of consumers are getting riled up after enjoying distinctly lower connection speeds than they’re paying for.”