Vaizey backs "two-sided" broadband market

Broadband providers should be allowed to offer packages that charge content providers, households and companies extra for receiving faster internet speeds, culture and communications minister Ed Vaizey has said.

In a speech at the FT World Telecoms Conference in London, the Conservative MP for Wantage & Didcot argued that it is essential to encourage innovation and "different business models" to ensure consumers get what they want.

However, such an approach would violate the long-held principle of net neutrality, which dictates that all internet traffic is treated in the same way.

Mr Vaizey told the event that in reality, "virtually all" internet service providers (ISPs) already engage in traffic management to ensure the smooth running of their networks.

As long as customers are aware of what they are buying and have the option to switch to another ISP if their broadband package changes, he added that users should be allowed to pay for "differing levels of quality of service".

A spokesman for the Internet Service Providers Association told the BBC that the minister's comments will "reassure" companies that are investing in their networks and developing new online business models.