It is not news to anyone that Comcast is hardly a friend to consumers. But they have now taken action that is a direct attack on the open Internet and the growing desire on the part of consumers to bypass cable TV by accessing media on the Internet.
A partner of Netflix, a company called Level 3, is one of the companies that Netflix uses to stream their content over the Internet. Level 3 provides the bandwidth. However, Level 3 now claims that Comcast has demanded fees from Level 3 to deliver content to Comcast customers. Here is an excerpt from their full statement:
On November 19, 2010, Comcast informed Level 3 that, for the first time, it will demand a recurring fee from Level 3 to transmit Internet online movies and other content to Comcast’s customers who request such content. By taking this action, Comcast is effectively putting up a toll booth at the borders of its broadband Internet access network, enabling it to unilaterally decide how much to charge for content which competes with its own cable TV and Xfinity delivered content. This action by Comcast threatens the open Internet and is a clear abuse of the dominant control that Comcast exerts in broadband access markets as the nation’s largest cable provider.
On November 22, after being informed by Comcast that its demand for payment was ‘take it or leave it,’ Level 3 agreed to the terms, under protest, in order to ensure customers did not experience any disruptions.
Level 3 operates one of several broadband backbone networks, which are part of the Internet and which independent providers of online content use to transmit movies, sports, games and other entertainment to consumers. When a Comcast customer requests such content, for example an online movie or game, Level 3 transmits the content to Comcast for delivery to consumers.
Level 3 believes Comcast’s current position violates the spirit and letter of the FCC’s proposed Internet Policy principles and other regulations and statutes, as well as Comcast’s previous public statements about favoring an open Internet.
While the network neutrality debate in Washington has focused on what actions a broadband access provider might take to filter, prioritize or manage content requested by its subscribers, Comcast’s decision goes well beyond this. With this action, Comcast is preventing competing content from ever being delivered to Comcast’s subscribers at all, unless Comcast’s unilaterally-determined toll is paid – even though Comcast’s subscribers requested the content. With this action, Comcast demonstrates the risk of a ‘closed’ Internet, where a retail broadband Internet access provider decides whether and how their subscribers interact with content.
Think about that. Comcast customers already pay for Internet access. If Comcast then stands between the customers and the full Internet, then Comcast can decide whether a competitor (in this case Netflix) can offer services to Comcast customers. Netflix is a direct competitor to Comcast and this is an assault on competition for content delivery. This is truly outrageous and should be shut down immediately by the FCC.
In addition, Comcast currently is in the process of acquiring NBC Universal. Allowing a company that threatens to block open Internet information from its customers to acquire a broadcast network is a recipe for disaster. Imagine if the only way you could watch NBC-generated content was via Comcast cable? What if you wanted to cut your cable TV and watch NBC content on Hulu. Do you think Comcast would allow that without a fee?
Update: The Chair of the FCC has now asked for more information regarding this action.
Related articles
- Now Showing: Comcast previews a world without Net Neutrality (tech.fortune.cnn.com)
- Comcast Is Bullying Netflix Partners Into Paying a Toll to Deliver Streaming Video [Bullies] (gizmodo.com)
- Level 3 Says Comcast Wants Fees to Transfer Movies to Users (boingboing.net)
- Comcast accused of internet abuse in latest net neutrality spat (slashgear.com)
- Level 3 vs. Comcast: More Than A Peering Spat? (datacenterknowledge.com)
- Netflix partner Level 3 accuses Comcast of anti-competitive behavior (latimesblogs.latimes.com)














