Comcast has begun imposing a fee on Internet middleman Level 3 Communications, one of the companies that Netflix 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, EBay 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…
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.
If you don’t pay the toll, your traffic doesn’t go through – or Comcast will slow it down enough to make it unwatchable.
Oh, now I get the “Fat Cat” picture/joke. Anyway.
What the Internet sorely needs is a Bill of Rights, like in the US Constitution. Limiting just what any commercial entity or service provider, can do with it. Spelling out specifically how providers are allowed to profit from the Internet, and no other way. This adding of their own content offerings, obviously was bound to put them in conflict with all other similar content providers. Connectivity providers ought NOT be in the content or product selling business. Suppose Comcast decided to sell books and DVDs next. Would it also be fair of them to toll charge Amazon.com for selling via their servers? What if a viewing region’s Tv station got bought up by Toyota. Would it be fair of them to charge Ford, GM, Nissan, and Chrysler more to advertise their cars on these stations? What if a certain US State charge a toll for certain makes of cars to travel on their roads, but gave a “free ride” to one made in that State? What if your cell phone carrier charged you more to talk to your friends, who’s phones were on a competing carrier? Would that be fair too? Obviously, none of these hypothetical abuses have been allowed to happen. Yet. It’s only been allowed to happen on the internet, because the US Congress just doesn’t “GET IT”. But they do “GET” lobbying and bribery. So they’ve failed to do what’s right in the general public’s interest. And looked out mainly for special interests.
Last time I checked, the air waves and internet systems, weren’t owned by any one commercial entity. They only have a license to operate as if they do. And extorting fees and surcharges, for use by potential competing businesses, should never be a part of what the carriers are licensed to do. And the FCC has gotten extremely weak and fuzzy on policing and preventing ecommerce monopolization.
If Leo Laporte is the President of the Internet, like a kind of John Hancock of Philadelphia’s early US Congress. Then he ought to recruit some of his colleges in various vanes of eCommerce and eMedia, to come up with a Internet Bill of Rights (“I-BoR”). I should a small group of internet founding eFathers, he knows and trusts, could come up with something inspiring enough for even the jaded US Congress to seriously consider, as a model for their muddled version, yet to come.
If Jimmy Kimmel can come up with National Unfriend Day. Certainly some basic Internet Usage Rights and Rules, can be made of some greater benefit, to the whole world.
I have read than netflix streaming is now 1/2 of all bandwidth use in places. You think they should get that for free while others have spent BILLIONS to build and maintain the network?
How much more investment do you think Comcast needs to make to improve Netflix service?