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Presumably the BBC iPlayer traffic is kept separate from your broadband traffic allowance.
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Yes, the content comes down through the TV frequencies, outside the IP streams.
Worked fine here, if a bit slow on my non-V+ SA STB. Once you anticipate the lag and work out how to sort the menus it's a bit better, but the viewing experience itself (last week's HIGNFY) was fine. Can see this getting a lot of use, it's a killer app.