BT, TalkTalk, Sky and other internet providers will be allowed to create a "two-speed" internet – favouring broadcasters and other media companies who pay them extra for a faster service – under proposals put forward by communications minister Ed Vaizey today.

The move prompted immediate concern from the BBC, which fears that its popular but traffic-hungry iPlayer service could be relegated to an "internet slow lane", while rivals spend large sums with the likes of BT to ensure faster online transmission to the nation's homes.

Vaizey, speaking at a conference in London, said it was a "crucial stage in the history of the internet". He added it was necessary to allow broadband providers "to shape" how services such as the BBC iPlayer are delivered as demand for watching online video takes off and consumes more internet capacity.

However, Erik Huggers, the BBC's director of future media and technology, said afterwards that he was concerned by the plans. It was "critical" that access to all internet services was equal. BBC insiders fear that the internet providers will try to charge the corporation considerable sums to ensure EastEnders and other popular programmes are delivered smoothly.

Ministers, though, want regulations to ensure that consumers are informed as to what their internet provider is doing. Vaizey said that the new rules would require providers to "present information about their service, including the nature and extent of their traffic management policies and their impact on service quality in a clear, visible and easy to understand form".

In the past, internet providers have treated all data equally – a concept known as net neutrality – which means that all content, whether video from the BBC or a pirated song, will travel across the network under the same rules. But BT and Talk Talk, in particular, want to charge heavy users extra to ensure their content is delivered more quickly and reliably. Ofcom and the European commission are holding a joint consultation on the subject, which is due to report early next year.

The debate has already proved controversial. While BT and Talk Talk claim that the BBC's iPlayer and Google's YouTube account for a high proportion of their traffic, companies such as Google have warned that if internet providers are allowed to discriminate it would stifle online innovation and freedom of expression.

"Maintaining an open and neutral internet is critical," Huggers said in a keynote speech. "I am concerned by recent developments whereby ISPs discriminate in favour of certain traffic based on who provides it. An open and neutral internet is crucial to the growth of our digital economy."

BT welcomed the announcement, saying broadband providers "should be free to strike commercial deals" with content providers who want "a higher quality of service delivery". A BT spokesman said ISPs were "unlikely to discriminate against particular traffic" since customers could "easily switch" to a rival provider.

But consumer rights groups argue that such a move would still restrict the choice of most internet users. Jim Killock, executive director of the campaigning organisation Open Rights Group, warned: "Removing net neutrality is likely to reduce innovation and reduce people's ability to exercise their freedom of speech.

"What I fear about what Ed Vaizey and the government are saying is that they're expecting the ISPs to start providing more and more content directly to their customers and that gives them lots of incentive to not provide the same level of access to internet services, create market abuse and distort competition."