BBC, BT Lock Horns Again

10:20 AM -- It seems that ever since the British Broadcasting Corp. (BBC) and BT Group plc (NYSE: BT; London: BTA) became partners in a video-over-broadband project, they can't help having a dig at each other. (See BBC Updates on Canvas and BBC Consults on IPTV.)

First, the BBC criticized BT for its bandwidth management strategy, which, the broadcaster claims, is impacting the quality of its popular over-the-top iPlayer service. (See BBC Hits Out at BT.)

Now BT is saying the BBC, and other Internet video content providers such as Google (Nasdaq: GOOG) need to contribute toward BT's network capacity costs, and that it's not possible for them to have a "free ride" any more. Check out this Financial Times report.

This is a tussle that can only get more interesting, as video traffic continues to grow, both in real terms and as a percentage of overall Internet traffic. (See Cisco Sees Video Gone Wild.)

– Ray Le Maistre, International News Editor, Light Reading

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