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Level 3 Shaken Down By Comcast Over Video Streaming

An anonymous reader writes "It looks like the gloves are really coming off; Level 3 Communications had to pony up an undisclosed amount of cash to keep Netflix streaming to Comcast customers. Perhaps now the FCC might actually do something to ensure that the internet remains open. Level 3's Chief Legal Officer, Thomas Stortz, said: '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.'"

5 of 548 comments (clear)

  1. Re:Class action suit? by mwvdlee · · Score: 3, Interesting

    Amazing how people continue to vote for politicians who are so corrupt, but that is what they do.

    Amazing how people continue to think an alternative to corrupt politicians exist. Some democratic systems, the US one in particular, make minority votes practically useless.

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  2. Here's what's going on by geoffrobinson · · Score: 5, Interesting

    Full disclosure: I worked in a Comcast department that helped to determine what future internet bandwidth requirement were going to be. They fired me for reasons I don't feel like getting into, I'll try to give an unbiased account of what I think their thinking is.

    Honestly, Comcast is extremely frugal. This can be both good and bad. In 2008, Wall Street types were encouraging them to take on a lot more debt before the debt bubble popped.

    They do a lot of things in order to free up bandwidth and to satisfy bandwidth demand. It's not like they are sitting on their butts and collecting money. But what they are not going to do is put fiber optics straight to your home, which would be the clearest way to expand the amount of bandwidth. That is extremely expensive and only Verizon is doing that. No other telco is doing that.

    When they are converting analog channels to digital, they are doing that to free up bandwidth. They are trying to roll out Switch Digital Video in order to free up bandwidth (80 or so channels which barely anyone watches in a given service group will be swapped in and out when needed). They split off customers into different service groups to mitigate this as well. They are constantly monitoring this and a lot of hard work goes into this.

    What I think is going on is not that they are worried about cable revenues going down (and I think they know that it is inevitable) but they are freaking out about an increase in web video eating up all their bandwidth. I can't be certain about this. But you have to also understand a corporation has several different parts. One part might not care about something while another part may view Netflix as an existential threat.

    So while I would love to bash Comcast because I feel they screwed me over, I can't sit here and tell you that they aren't doing anything.

    However, Verizon does have a superior product in my opinion which works better for reasons I could get into. But that basically comes down to the fact they don't have much legacy equipment on their system and they went with fiber-to-the-home instead of fiber-to-the-neighborhood.

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    Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
    1. Re:Here's what's going on by geoffrobinson · · Score: 3, Interesting

      Excellent question.

      Switch Digital Video (SDV) is a cable industry standard which you can find documents detailing how it works. Its all on the back end.

      I believe this is how it will work:
      -analysis goes into which channels get swapped in and out
      -for a given service group, if someone wants to go to channel X they just change the channel
      -on the back end some complicated stuff happens where they determine someone wants that channel and they dynamically allocate bandwidth for that channel and swap out some other channel no one is watching

      --
      Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.
  3. Re:I Disagree by chris234 · · Score: 4, Interesting

    Of course, it's perfectly valid to say that Comcast customers are requesting 5 times more content from Level 3 customers than they are sending Level 3 customers. So seems to hardly be a Level 3 issue.

  4. Re:Class action suit? by rjstanford · · Score: 3, Interesting

    It would actually be interesting if you could cast your one vote for (+1) or against (-1) any candidate. That would allow a candidate who a small number of people preferred but nobody really disliked to prevail rather than just the "other" candidate - if you want to "throw the bum out," you vote against them rather than for their opponent. Far simpler a change than many suggestions.

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