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Comcast allegedly demanded more money from a high internet video provider, or threatened to disconnect its customers. The move marks a bold assault on net neutrality.  (Source: CFC Oklahoma)
Legislation may stop the "toll booth" practice, though

Comcast is no stranger to controversy, with a penchant for aggressive cost saving measures.  It ran afoul of the U.S. Federal Communications Commission when it began throttling users' traffic, such as torrents or peer-to-peer connections (with regard for their legality).

Now Comcast appears to have landed itself in another mess with Level 3 Communications' Chief Legal Officer, Thomas Stortz, accusing it of demanding money in order to continue to allow Comcast customers to access Level 3's high speed video.  In essence, if true, that would represent Comcast spitting in the face of the net neutrality movement, and making a bold move towards a "toll booth" web as Level 3 puts it.

Mr. Stortz writes:

On November 19, 2010, Comcast informed Level 3 that, for the first time, it will demand a recurring fee from Level 3 to transmit Internet online movies and other content to Comcast’s customers who request such content. By taking this action, Comcast is effectively putting up a toll booth at the borders of its broadband Internet access network, enabling it to unilaterally decide how much to charge for content which competes with its own cable TV and Xfinity delivered content. This action by Comcast threatens the open Internet and is a clear abuse of the dominant control that Comcast exerts in broadband access markets as the nation’s largest cable provider.
On November 22, after being informed by Comcast that its demand for payment was ‘take it or leave it,’ Level 3 agreed to the terms, under protest, in order to ensure customers did not experience any disruptions.
Level 3 operates one of several broadband backbone networks, which are part of the Internet and which independent providers of online content use to transmit movies, sports, games and other entertainment to consumers. When a Comcast customer requests such content, for example an online movie or game, Level 3 transmits the content to Comcast for delivery to consumers.
Level 3 believes Comcast’s current position violates the spirit and letter of the FCC’s proposed Internet Policy principles and other regulations and statutes, as well as Comcast’s previous public statements about favoring an open Internet.
While the network neutrality debate in Washington has focused on what actions a broadband access provider might take to filter, prioritize or manage content requested by its subscribers, Comcast’s decision goes well beyond this. 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 – even though Comcast’s subscribers requested the content. With this action, Comcast demonstrates the risk of a ‘closed’ Internet, where a retail broadband Internet access provider decides whether and how their subscribers interact with content.
It is our hope that Comcast’s senior management, for whom we have great respect, will closely consider their position on this issue and adopt an approach that will better serve Comcast and Comcast’s customers.
While Comcast’s position is regrettable, Level 3 remains open and willing to work through these issues with Comcast. However, Level 3 does not seek any ‘special deals’ or arrangements not generally available to other Internet backbone companies.
Given Comcast’s currently stated position, we are approaching regulators and policy makers and asking them to take quick action to ensure that a fair, open and innovative Internet does not become a closed network controlled by a few institutions with dominant market power that have the means, motive and opportunity to economically discriminate between favored and disfavored content.

Comcast is America's largest cable internet provider, so if Level 3's claims are indeed legitimate, net neutrality advocates -- including corporations like Google -- should be very concerned.  After all, other cable providers will likely follow in Comcast's lead.

If Comcast indeed succeeds in this bid, it would likely mean that the cost of internet services for users would greatly increase.  Advertising would no longer be enough to sustain sites like YouTube or Facebook, and they would have to switch to subscription fees.

The U.S. Congress and the FCC are working on legislation to prevent this kind of "pay to play" practice.  The pending legislation has generally enjoyed bipartisan support, though it has a few vocal critics, including Senator John McCain (R-Ariz.).



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RE: Barriers to Entry and Competition
By Klinky1984 on 11/30/2010 2:05:12 PM , Rating: 3
Mmm, well I love smug people who think that the Internet comes from magic pixie dust and don't believe that some people don't have any other option than Comcast as their ISP.


RE: Barriers to Entry and Competition
By Reclaimer77 on 11/30/10, Rating: 0
RE: Barriers to Entry and Competition
By cmdrdredd on 11/30/2010 10:28:43 PM , Rating: 2
quote:
If the Internet is a life and death issue for you, and Comcast really is destroying life as you know it, then move or something. Don't drag me down with you.


This is the worst argument someone can use. "just move"

We've owned our home for 29 years. 2 Kids grew up here and have been employed with the same company for near 30 years. How can someone just get up and move? They can't. To use this as your argument is extremely narrow minded.


RE: Barriers to Entry and Competition
By Kurz on 12/1/10, Rating: -1
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














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