Comcast Target of Net Neutrality Accusation

If Internet content provider Level 3 is to be believed, Comcast, the largest Internet/Cable provider in the US, might be in the midst of a real net neutrality test. According to Level 3, which delivers a lot of the Internet’s content to Comcast subscribers, Comcast has demanded a deal be settled where it would have to pay additional fees for delivering streaming video content, such as Netflix.

This story is hot on the heels of Netflix’s announcement of a cheaper streaming-only option in the US, and reminds me of a similar scheme produced by Rogers Communications when Netflix first came to Canada. There, Rogers conveniently lowered the already low monthly bandwidth limits for new subscribers… not a subtle move. If Level 3 is spot on with its accusations, however, the actions are not too different from what Comcast is allegedly trying to pull off.

The story is extremely murky at this point, and unless you are very familiar with law and net neutrality, you might find it hard to draw up a conclusion. As the story goes, Level 3 has been asked by Comcast to pay additional fees for streaming video content, and that’s exactly the kind of thing that net neutrality goes against. Comcast, on the other hand, states that Level 3 is doing little more than turning a regular deal into a media-fest in order to get lower rates. Which company is right? Given this is in the public eye now, it shouldn’t take too long before we find out.

Comcast, being a major provider of content in the US, isn’t the most liked company around, and has been found to shape traffic in the past, namely that with BitTorrent. With this accusation on the table, it raises important issues, and issues that need to be dealt with. As it is, Comcast is innocent in this matter, but the entire situation is a bit scary to think about. Whatever the ruling, hopefully it’s one that will benefit consumers most.

The news comes on the heels of Netflix turning to Level 3 to handle its streaming video. Earlier this month, Netflix announced the deal that would send the bulk of its content-distribution business to Level 3 and Limelight and less to rival Akamai. This was a huge win for Level 3 in terms of its content delivery network (CDN) business, but it also means that the company will now be carrying a much higher traffic load on its network. Subsequently, it means that it will also ask its peering partners to accept much higher traffic loads than previously.