Internet service providers (ISPs) have argued recently that companies producing content that makes heavy use of networks, such as video, should help to pay to build the 'next generation' high capacity networks that will be needed if the content becomes very popular.
But Ofcom chief executive Ed Richards told a meeting of two Parliamentary committees that producers of content should not be forced to pay.
"I am not convinced myself that the right answer to that is to get the BBC to pay for the iPlayer," said Richards, according to press reports.
ISP Tiscali has said that the BBC in particular should help to pay for upgrades because its iPlayer software, which allows users to watch material after it has been on television, has proved extremely popular.
The iPlayer has been used to watch over 40 million programmes since December, and 12 million in March alone. ISPs argue that such popularity is putting a strain on networks.
Earlier this month, Tiscali's Simon Gunter spoke of his concerns on BBC Radio 4's Today programme. "The BBC would like us to pass all those costs on to the end user, i.e. our customers, the consumers of that product," he said. "And our view is that 'should we pass all those costs on to the end user or should we seek to somehow share those costs with the content originators?'"
Ofcom's Richards seemed to back the content producers in addressing the House of Commons Culture, Media and Sport Committee and its Business and Enterprise Committee. He said that a levy on content producers is "not necessarily the way we would anticipate" that investment would be raised for improved networks.
ISPs, who already operate in an extremely price competitive market, are reluctant to increase prices, but Richards told the Committees that price rises for fast connections were likely.
Though Tiscali had singled out the BBC, ISPs are facing a fast growing use of video content as network speeds make the watching of online video practical for the first time.
Sites based on short, low-quality clips such as YouTube have been popular for some time, but growing usage of services such as the iPlayer and Channel 4's 4oD on-demand viewing service are growing as network capacity grows.
Some experts have warned that increasing use of the internet for video content worldwide could make networks grind to a halt, though others argue that the internet's main constituent parts have sufficient capacity for some time in the future. Most experts agree that any deficiency will be in connections between homes and the nearest point of access to more major network points.