Tuesday, November 30, 2010

Comcast erects 'toll booth' for Netflix delivery service; FCC to seek more information about the claims

This is precisely what advocates for net-neutrality have been warning about, a cable company using its leverage as an Internet delivery system to stifle the efforts of a competitor. In this case, Bloomberg reported yesterday evening about the actions of Comcast which is supposedly imposing a fee on Level 3 Communications Inc., one of the companies Netflix uses to deliver movies and TV shows to its customers who want to stream content over the Internet.

“By taking this action, Comcast is effectively putting up a toll booth at the borders of its network,” Thomas Stortz, Level 3’s chief legal officer, said in a statement. Comcast's position is that by streaming Netflix content Level 3 is essentially using up too much bandwidth.

According to the WSJ, the FCC is investigating Level 3's claims and is seeking more information.