Should Aussies Pay Extra for Video Streaming?

Video Streaming

Australia’s National Broadband Network’s (NBN Co) recent proposal has not been received well by experts and the people of the country. There is a possibility that Australians will soon be paying over and above their broadband service payment plan for video streaming. To the chagrin of many, this news did not go down well.

NBN Co, the wholesale broadband provider of the country, has suggested it will consider video streaming separately from other types of traffic on the network. A Netflix type tax will be applicable on this use and similar streaming services. NBN Co’s top 50 Retail Service Providers (RSPs), were roped in to discuss the proposal. An addition of this kind was sure to introduce debate and fuel further confusion even among the service providers. An extra charge for streaming videos seemed unfair on viewers and would lead to discouraging them from opting for the plans, with subsequent viewership. RSPs are not so welcoming of this news.

Australians have been paying for plans and packages and streaming videos have been part of those plans, charging them extra, will break the organic structure they have been following. A recent study undertaken showed that more than 37% of Australians already think that their broadband services are not good value for their money. This extra charge will add nothing to the deteriorating appeal.

Also, another issue of contention would arise. The decision to charge for services rests in the hands of the service providers, not the NBN Co, this way they would be taking away the authority to decide from them. Internet Australia chair Paul Brooks told iTnews there was “absolutely no justification” for NBN Co to be “artificially throttling traffic” to extract more money for video traffic.