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Leading broadband providers BT, Virgin Media and Orange are working together on a new system designed to improve the delivery of online video services, according to reports.

The Guardian has revealed that BT's Wholesale division is working on a new network called Content Content, which would see popular videos stored on a broadband provider's network as opposed to the internet.

It is hoped the move would cut levels of congestion on the internet and BT is believed to have spoken to Virgin Media, Orange and the likes of the BBC and Five over the plans.

Under the scheme, broadcasters would pay internet service providers (ISPs) to ensure quality video broadcasting at peak times, which may be beneficial to many firms.

Sian Baldwin, Director of Broadband and Content services at BT Wholesale, told the newspaper that without such a move, ISPs may have to spend money on expanding networks despite receiving no return from the web services that benefit.

BT recently confirmed it is providing an advanced communications network to the new MediaCity development on Manchester's Salford Quays.

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