James Murdoch attacks incumbent telecoms operators
A general rule no matter which country you live in is that pricing from the incumbent telecoms operator will almost always cost more than competitors and new entrants to the market place. With this in mind it is perhaps no surprise to see Mr Murdoch have a go at the UK incumbents over price and speed of broadband services.
"Our focus is on delivering good things for customers, and ultimately we think that really matters - from a regulatory perspective as well,
When we say we're going to go and challenge some of these big incumbent telecoms operators who've been charging too much for too little, for way too long, we think that's good for customers."James Murdoch (Chief Executive), BSkyB
Barry Collins over at PC Pro spotted the original article in the Financial Times. One thing that many people in the industry and consumers in the know are likely to agree on is Mr Murdoch's argument that a HD (high-definition) sports broadcast is going to be far more efficient to distribute via satellite than it is through existing broadband networks.
Delivering HD content is a challenge both for broadcast solutions and even more so if using a broadband connection. It is like the days before broadband when online radio was available, but while the bit rate fitted onto a dial-up connection, the slightest bit of congestion would cause the audio to stutter. This is similarly the case with video content over broadband and worse if this is a high resolution or high bit rate feed. If a provider truly wants to embrace video over broadband, large investment in network capacity is required.