News that Comcast had threatened to block internet backbone Level 3, which is one of the companies delivering Watch Instantly streams, sent shockwaves through the industry yesterday. Net neutrality advocates geared up for battle, Comcast insisted it was only enforcing the same arrangements other networks abide by while Roger Ebert and the rest of us fretted over Netflix access. Today, Level 3 issued a response to Comcast, claiming it is “distracting from the fundamental issue” which is free use of all content on the internet for its customers. Meanwhile, Multichannel News points out industry analysts say Level 3’s claims of traffic discrimination “appear unfounded” while VideoNuze editor Will Richmond supposes Level 3 may have “bid too aggressively for the Netflix business and is now trying to recover.” Most damaging to Level 3’s argument are its own words from a dispute where it sought financial compensation from Cogent for using too much of its network’s bandwidth:
“For example, Cogent was sending far more traffic to the Level 3 network than Level 3 was sending to Cogent’s network. It is important to keep in mind that traffic received by Level 3 in a peering relationship must be moved across Level 3’s network at considerable expense. Simply put, this means that, without paying, Cogent was using far more of Level 3’s network, far more of the time, than the reverse. Following our review, we decided that it was unfair for us to be subsidizing Cogent’s business.”
Beyond analyst opinions and posturing the question of whether or not Comcast has the power to set pricing for access to its network, creating the toll road Level 3 is accusing it of being, is still at issue. That will certainly come into play at the FCC, where chairman Julius Genachowski mentioned at today’s meeting that the agency is looking into Level 3’s claims at the same time it continues to review the joining of Comcast and NBC. As far as your Netflix streams? Safe for now, though the company isn’t commenting, Level 3 isn’t the only provider it relies on for access and how any deal it might reach with Comcast could affect the service is still unclear.
Update: Comcast has issued its own salvo of PR, including a video meant to breakdown exactly what internet peering is and what it wants to charge Level 3 for, 10 of its own facts about what it is, and is not doing, and a copy of the letter it’s sent to the FCC about the issue. You can them all out in full after the break.
Continue reading FCC looking into Comcast / Netflix blocking threat, Level 3 responds as analysts chime in
FCC looking into Comcast / Netflix blocking threat, Level 3 responds as analysts chime in originally appeared on Engadget on Tue, 30 Nov 2010 15:56:00 EDT. Please see our terms for use of feeds.
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As you can imagine, the thought of a marriage between a broadband / cable TV service provider and a content provider for television and movies has more than a few folks concerned, which is why it’s taken a while for the FCC and its erstwhile chairman Julius “Caesar” Genachowski to draft the conditions under which it would let Comcast snatch up 51 percent of NBC Universal. According to the Wall Street Journal, the FCC wants to require that Comcast make any content owned by itself and NBCU available to competitors (including streaming video providers) “at reasonable, nondiscriminatory terms.” Additionally, Comcast will be barred from prioritizing its own video streams above others or interfering with rival Internet traffic. Of course, without the actual announcement, it’s hard to know what impact this will have on everyone involved (especially Hulu), although with any luck the actual proposal will see the light of day soon enough. Even then, it will need to be approved, which could happen early next year.
