FCC to review Netflix's peering deals

|By:, SA News Editor

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.