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The Looming Problem With Home Videoconferencing

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Could the boom in home video conferencing services slow down the Internet?

A number of companies, including behomeths like Cisco and Google, are trying to sell consumers on the idea of making video calls from their living room TVs. Both companies unveiled  consumer video conferencing systems--called umi and Google TV, respectively--on Oct. 6.

It’s too early to predict whether these products will catch on. Umi, which costs $599 plus $25 per month, has been criticized for being expensive. But if these services do attract significant numbers, they could affect pricing for and usage of the entire Internet, suggests one analyst.

In an Oct. 7 research note, Current Analysis analyst Larry Hettick posits that video calls could push Internet service providers like Comcast and AT&T to limit the amount of data they let subscribers utilize each month. He views video calls as a likely culprit because video, particularly streaming video, takes up far more bandwidth than other Internet applications, such as web searches and email.

Broadband providers already curb the bandwidth used for downloads but haven’t yet set usage caps on uploads because users typically don’t upload heavy files. Hettick predicts that will change if video calls get popular and providers begin seeing a “constant stream [of uploads] at 1.5 to 3.5 [megabytes per second]”. Those are the upload speeds Cisco says are necessary for high-definition (720p and 1080p) video on umi. Video calls on Google TV using a camera from Logitech--which is the only kind currently available--will require a minimum speed of 1 megabyte per second.

“Even if the residential broadband networks survive the strain, usage caps might be imposed on upstream transmission,” writes Hettick. The issue is “[a] concern for all video conferencing models,” he adds.

Widespread adoption of upload usage caps could affect the way many people, not just those with home video conferencing systems, experience the Internet. Heavy users may find their Web connections throttled or be charged for taking up excess bandwidth. Consumers and consumer rights groups have spoken out against both options (in relation to download caps), but broadband providers say they are essential to managing traffic on their networks.

Do you think upload usage caps are likely to take hold? Let me know in the comments below.