"We can't give the content providers a completely free ride and continue to give customers the [service] they want at the price they expect," Petter said. He did note however that it wasn't only the BBC to blame, but all streaming video services.
A BT spokesperson said costs incurred by ISPs by streaming video services was very high. "Obviously we're a big business," said the spokesperson. "We're raising this issue publicly, so you can take it as read we're not talking small amounts of money."
The same spokesperson noted that the BBC and BT were currently partners in "Project Canvas", an IPTV deal. "It's a good example of how ISPs and content owners can sit down and agree on a cost," he noted.
The BBC however, does not agree that content holders should have to pay even another cent extra, as streaming video only takes up small portions of online traffic at any given time.
Says BBC technology editor Rory Cellan Jones: "I can not remember BT ever making such an forthright call for cash. So far the whole issue of net neutrality - the idea that the internet should not discriminate between different types of traffic - has not made much of an impact in Britain."
"Now Britain's biggest internet service provider is making it clear that, in a cut-throat broadband market, something is going to have to give - and net neutrality may have to be chucked overboard."