Originally Posted by OwenSmith:
“It would also have to go hand in hand with ISPs upgrading their backbones massively and not doing traffic shaping during busy periods. Until recently many of them said they didn't support the use of iPlayer and traffic shaped it.”
A lot of big ISPs including BT, TalkTalk, O2 and Sky (the notable exception being Virgin Media) have signed The Open Internet Code of Practice, which prevents certain types of data being restricted. Overall traffic management can still take place at busy times but you can imagine the outcry if one particular ISP started managing traffic so heavily that IPTV stopped working. Bandwidth caps can easily exclude IPTV if the ISP wants to do this.
Originally Posted by OwenSmith:
“I can imagine their response to video streamed at tens of megabits. Not going to happen, it costs too much money. Most people expect to pay almost nothing for their broadband.”
Not going to happen? Want to bet?
I think what you fail to realise is that technology moves forward very quickly in this area. BT have already said they're upgrading their network for multi-casting, which dramatically reduces the bandwidth needed for IPTV. Virgin Media doesn't have to do anything since their cable infrastructure can easily handle HDTV as we already know.
FTTC (which can easily handle this kind of traffic) is available to more homes than ever before and this will continue to increase. Yes it costs more but like anything, this will reduce in time.
Also, broadband is a utility - do people expect to pay almost nothing for their electricity, gas, water or phone lines? I can't see DVB-T(2) being turned off any time soon but it's already at full capacity and IPTV can introduce more channels, higher quality transmission and better interactive and on-demand content. It's also perfect for pay content. We are already seeing this with some Freeview HD boxes, plus Virgin Media, Sky and BT Vision.
It won't happen now but it will happen.