SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Verizon and Netflix Throw Down Over ISP Speeds

TMCnet Feature

June 06, 2014

Verizon and Netflix Throw Down Over ISP Speeds

Share
Tweet
By Tara Seals
TMCnet Contributor

Using its statistics on Internet speeds has become a weapon for Netflix, which uses the information to essentially publically shame ISPs that aren’t up to snuff. Most notably it publishes a monthly speed index showing which ISPs provide the best quality of experience for Netflix streaming video (and which ones are the worst). Starting in May though, Netflix ramped up its rhetoric: If video takes too long to buffer when streaming, customers also get an on-screen message blaming the relevant ISP for network congestion.


Verizon (News - Alert) Communications doesn’t like that—it doesn’t like that at all. It has sent the over-the-top (OTT) giant a cease-and-desist letter demanding that Netflix stop sending such messages to its customers, and requested a list of Verizon ISP customers that Netflix has contacted so far.

"Failure to provide this information may lead us to pursue legal remedies,'' Verizon general counsel Randal Milch said in a letter to Netflix general counsel David Hyman.

Verizon is of course in a high-stakes competitive situation when it comes to broadband, and customer satisfaction is not a strong suit for any provider in that market, so naturally this kind of “bad press” from an app provider doesn’t bode well for churn metrics. For its part, Netflix defended its actions as being pro-consumer and good for its own customers.

"This is about consumers not getting what they paid for from their broadband provider,'' Netflix spokesman Jonathan Friedland said.  "We are trying to provide more transparency, just like we do with the ISP Speed Index, and Verizon is trying to shut down that discussion."

Verizon, though, says that Netflix has the wrong bad guy. "Netflix has been aware for some time that a few Internet middlemen have congestion issues with some IP Networks and nonetheless, Netflix has chosen to continue sending its traffic over those congested routes," Milch said.

Ironically, Netflix recently inked a deal with Verizon to have its traffic delivered to Verizon subscribers via a direct interconnection between the two—boosting quality of service.

Speaking on CNBC at the time, Verizon CEO Lowell McAdam (News - Alert) said that the two companies were in talks to ink a paid direct peering agreement as well.  "It shows you don't necessarily need a lot of regulation in a dynamic market here,” he said. “Doing these commercial deals will get good investment and good returns for both parties.”

Deal or no deal, Netflix sees its arrangement with Verizon as being borne out of a disappointing lack of regulation. Verizon of course prevailed in the lawsuit to block the Federal Communications Commission's ability to enforce Net neutrality (News - Alert) rules. Since then, consumers have anecdotally reported slower video streaming experiences across a variety of Internet providers, who of course also happen to be pay-TV providers.

Netflix CEO Reed Hastings blasted the situation in a blog, saying that “some big ISPs are extracting a toll because they can -- they effectively control access to millions of consumers and are willing to sacrifice the interests of their own customers to press Netflix and others to pay. Though they have the scale and power to do this, they should realize it is in their long term interest to back strong Net neutrality. While in the short term Netflix will in cases reluctantly pay large ISPs to ensure a high quality member experience, we will continue to fight for the Internet the world needs and deserves.”




Edited by Alisen Downey


View all articles


Comments powered by Disqus








Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy