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 posted a blog post

One Step Too Far Weighs in on Current Events

We now bring you this weeks program on One Step Too Far. Bear with us as more BS floats to the…See More
4 hours ago
Burbia's blog post was featured

A Masterclass Is Being Played Out For Those Who Have The Eyes To See

A question can be asked, why do Jews want a multicultural community in a host society? It is to…See More
9 hours ago
Doc Vega's 4 blog posts were featured
9 hours ago
tjdavis's blog post was featured
9 hours ago
cheeki kea commented on Burbia's video
Thumbnail

the WITCH language of MYSTERY BABYLON (DOCUMENTARY)

"Great video to watch, and it turns out english is a bizarre and formidable language in its…"
22 hours ago
cheeki kea favorited Burbia's video
22 hours ago
Less Prone left a comment for Roberto Castorena
"Welcome to a revolutionary concept in public communication, the truth."
Thursday
Less Prone posted a blog post

Reiner Füllmich imprisoned for investigating the Covid scandal

Rainer Füllmich, a lawyer investigating the Covid scandal was illegally captured in Mexico in…See More
Thursday
Burbia posted a video
Thursday
Doc Vega posted blog posts
Wednesday
Less Prone favorited Doc Vega's photo
Tuesday
tjdavis posted a video

They Destroyed Our Country and Nobody Stopped Them | No Commentary

Music Used in this Video:Song/Music - TimeArtist - Hans ZimmerLicense Type: Creative CommonSong/Music - Evidently ChickentownArtist - John Cooper ClarkeLicen...
Tuesday
Doc Vega posted blog posts
Jan 12
Doc Vega posted photos
Jan 12
Sandy posted a photo
Jan 11
james will's blog post was featured

What Is Tubidy? A Complete Beginner’s Guide

IntroductionTubidy is a free online platform that allows users to search, stream, and download…See More
Jan 10
Less Prone favorited james will's blog post What Is Tubidy? A Complete Beginner’s Guide
Jan 10
Roberto Castorena is now a member of 12160 Social Network
Jan 9
Less Prone favorited tjdavis's photo
Jan 9
Doc Vega posted a blog post

What They Told Us About Health and Now it’s Completely Reversed?

 Remember growing up that they told us all of these rules of thumb when it came to your…See More
Jan 8

© 2026   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