FCC to review Netflix's peering deals


The FCC wants more details about Netflix's (NFLX +0.6%) direct peering deals with the likes of Comcast and Verizon to gauge their impact, chairman Tom Wheeler states before Congress. "We are looking under the hood."

Reed Hastings has made it clear he views the deals, which in some cases have led to much better streaming speeds for customers, as a necessary evil, and has called for tougher neutrality laws that would make them unnecessary.

As recent data shows, Netflix speeds still vary considerably from one ISP to another.

Wheeler's remarks come after a month after he pushed through a neutrality proposal that could open the door to pay-for-priority deals between ISPs and content providers for the last mile, albeit while also seeking comment on whether such deals (fiercely opposed by neutrality advocates) should be banned.

Traditional Netflix peering provider Cogent (CCOI +0.9%) loses out when Netflix strikes direct peering deals.

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Comments (3)
  • Sakelaris
    , contributor
    Comments (2649) | Send Message
     
    A word to all corporations big or small: Never build or buy a connection line through my property that provides a monopolized delivery of a product if you cannot stand the concept of it being regulated for the public good.
    13 Jun 2014, 02:38 PM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
     
    Wheeler has given every indication he won't regulate much of anything in any substantively meaningful way.
    13 Jun 2014, 03:27 PM Reply Like
  • D.B. Kim
    , contributor
    Comments (147) | Send Message
     
    Meanwhile the rest of the world laughs at our broadband speeds and costs....
    14 Jun 2014, 11:53 PM Reply Like
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