Comcast Starts Web ‘Toll Booth,’ Netflix Supplier Says

http://www.businessweek.com/news/2010-11-30/comcast-starts-web-toll...

Nov. 30 (Bloomberg) -- Comcast Corp. has begun imposing a fee on Internet middleman Level 3 Communications Inc., one of the companies that Netflix Inc. has hired to deliver movies and TV shows to Web customers.

Comcast, the largest U.S. cable TV company, has set up an Internet “toll booth,” charging Level 3 whenever customers request content, the Broomfield, Colorado-based company said in a statement yesterday.

Level 3 plans to complain to U.S. regulators who may enact so-called net-neutrality rules next month. The Federal Communications Commission is seeking to bar phone and cable providers from interfering with legal traffic on their networks. The rules are backed by President Barack Obama and companies led by Google Inc., EBay Inc. and IAC/InterActiveCorp. Phone and cable companies say rules aren’t needed and may hurt investment.

“This action by Comcast threatens the open Internet and is a clear abuse of the dominant control that Comcast exerts in broadband access,” Thomas Stortz, Level 3’s chief legal officer, said in the statement. “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.”

Comcast, which is seeking regulatory approval to acquire majority ownership of NBC Universal, defended the fee in a statement, saying it is based on “long established and mutually acceptable commercial arrangements” with Level 3’s peers.

Traffic Jam?

Level 3 is preparing to more than double the traffic it puts on the cable provider’s network and has tried to pressure the company into accepting it for free, Joe Waz, Comcast’s senior vice president for external affairs, said in an e-mailed statement.

Level 3 announced on Nov. 11 that it will carry films and TV shows for the Web streaming service offered by Netflix.

Netflix accounts for more than a fifth of the traffic downloaded during the peak hours of 8 p.m. and 10 p.m. in the U.S., according to a report from broadband network company Sandvine Inc. Level 3 has said it will add capacity to its network to handle the extra load from Netflix’s movies.

Jen Howard, a spokeswoman at the FCC, and Steve Swasey, a spokesman for Netflix, declined to comment.

Comcast fell 27 cents to $19.94 at 9:38 a.m. New York time in Nasdaq Stock Market trading. Shares of the Philadelphia-based company had gained 20 percent this year before today. Level 3, down 35 percent this year, fell 2 cents to 98 cents. Netflix, based in Los Gatos, California, lost $1.86 to $197.06.

Genachowski

FCC Chairman Julius Genachowski, in proposing net neutrality rules last year, called for a principle of non- discrimination by Internet-service providers. The FCC will meet on Dec. 21.

“This means they cannot block or degrade lawful traffic over their networks,” Genachowski said.

Public Knowledge and the Media Access Project, two Washington-based advocacy groups, backed Level 3 yesterday. The groups said the request for payment to carry Level 3 traffic shows the need for stronger net neutrality legislation and more scrutiny of Comcast’s NBC deal.

Comcast is seeking to buy 51 percent of NBC from General Electric Co. and needs FCC and Justice Department approval to complete the deal, which was announced almost one year ago.

Critics, such as Representative Rick Boucher, a Virginia Democrat and head of a U.S. House panel on communications, are concerned that a merger would restrict customers’ access to content, particularly programs available online.

Zoom’s Complaint

Also yesterday, Boston-based Zoom Telephonics Inc. told the FCC that Comcast requires unreasonable tests of modems used to connect to the Internet. Zoom asked the FCC to set aside Comcast’s testing regime.

Comcast didn’t ask Zoom to submit to testing that is any different than what it asks of other cable modem manufacturers, Sena Fitzmaurice, a Washington-based spokeswoman for Comcast, said in an e-mailed message.

“Comcast wants to make sure devices our customers purchase at retail will work well and are safe,” Fitzmaurice said.

Views: 34

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
"less prone, Thanks for your support Buddy! "
8 hours ago
Doc Vega posted a photo

main-thumb-ti-6724328-100-cnsgqkrgkrhyeyyerazynmuwoplecnbx

When will they put Trump on Mt. Rushmore?
8 hours ago
Doc Vega's 4 blog posts were featured
17 hours ago
Burbia's blog post was featured

Charlie Kirk Assassination

September 10th 2025 in Utah Turning Point USA CEO has been assassinated. Coincidentally,  answering…See More
17 hours ago
Charles Magus's blog post was featured

FURTHER PROOF OF WALK-INS! Prisoners of the Dulce Base by Sherry Shriner

There is a real connection between the Cabal and what is happening at this Undergroung…See More
18 hours ago
Less Prone favorited Doc Vega's blog post Ashrams and Moonies Perfect Case for Mind Control
18 hours ago
Less Prone commented on tjdavis's blog post Sentient World Simulation
"Cannot open the link"
18 hours ago
Tina Sullivan is now a member of 12160 Social Network
23 hours ago
Doc Vega posted blog posts
yesterday
Sandy posted a video

We’re cooked

We’re cooked
yesterday
Sandy posted a photo
yesterday
tjdavis posted a video

Tom Horn discusses Masonic view of 2025

Startling perspective by Tom Horn of the upcoming year: 2025
Wednesday
cheeki kea posted a photo
Tuesday
cheeki kea commented on Doc Vega's blog post Grooming the New Generation of Assassins
"It's a distressing state of affairs when evil leftists hardwire impressionable students and…"
Tuesday
Doc Vega commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
"Burbia Charlie Kirk's wife is a real firebrand! God bless that poor woman! "
Monday
Doc Vega commented on Doc Vega's blog post This Memorable Anthem Given by Nick Freitas Hit the Nail on the Head Please Listen!
"Burbia thanks for the videos! "
Monday
Doc Vega posted blog posts
Monday
Burbia commented on tjdavis's video
Thumbnail

Charlie Kirk: Grief And Outrage From Turning Point USA in Phoenix

"Early reports said a.second shooter was there. Talk of Dischord chats. Peyton Gendron was coerced…"
Monday
tjdavis posted a video

America In Crisis: Illegals and Drug Smugglers Have Us Beat

An inside look at how bad the situation is at the Arizona/Mexico border. This exclusive tour with retired Arizona Sheriff Mark Lamb reveals just how bad thin...
Monday
Burbia posted a video

Sam Hyde Show: This is You

support the show: https://www.mde.tv/▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬🔥 BUY EXTREME PEACE on MDE.TV 🔥https://www.mde.tv/series/extreme-peace▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬...
Monday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted