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Netflix Partner Says Comcast Wants New ‘Toll’ on Web Video

Broomfield, Colo. – level three (NASD: LVLT), a composed content delivery local community that recently signed a important offer to provide streaming film for Netflix (NASD: NFLX), has accused Comcast (NASD: CMCSA) of imposing a toll on delivering internet film to consumers. “By getting this action, Comcast is properly placing up a toll booth in the borders of its broadband internet entry network, enabling it to unilaterally decide how an amazing offer to demand for composed content which competes with its individual cable tv set television and Xfinity shipped content,” level three chief legitimate officer Thomas C. Stortz stated in the statement.

“This activity by Comcast threatens the available internet and could possibly be considered a obvious abuse for the dominant control that Comcast exerts in broadband entry market segments since the nation’s most significant cable tv set provider.”

Level three says that earlier this month, Comcast requested for just about any new recurring cost to “transmit internet on the net films with one another with other composed content to Comcast’s purchasers who ask for this sort of content.”

The celebration “agreed in the direction of the terms, below protest, so that you just could make sure purchasers do not knowledge any disruptions,” Stortz added.

Comcast responded by calling the issue a celebration dispute, as opposed to some face-off greater than Net Neutrality.

“Level three is wanting to obtain an unfair celebration advantage greater than its CDN competition by claiming it’s entitled getting treated in a different way and wanting to force Comcast to provide level three limitless and extremely imbalanced specific site visitors and shift every one of the price tag onto Comcast and its customers,” Comcast authored in the weblog post.

“In other words, level three desires to compete with other CDNs, but pass every one of the costs of that celebration onto Comcast and Comcast’s customers, as opposed to level three and its customers.”

Level three in turn responded to Comcast’s statement, saying it is “regrettable that Comcast has sought to portray this merely like a commercial disagreement or perhaps a peering dispute,” and calling on Comcast “to reconsider its untenable position.”

The Wall street diary reviews how the Federal Communications Commission (FCC) is now looking for information inside the firms concerning the dispute.