Comcast Again Involved In Internet Traffic Dispute

WASHINGTON (CBS4) - Comcast is again at the center of a firestorm over the freedom of the internet. Level 3 Communications, which provides the backbone to Netflix's streaming, said Monday that Comcast is charging an unfair fee for the right to send streaming movies to its subscribers.

Level 3 said it agreed to pay the fee under protest and Comcast said the fee was required because of a flood of data. Level 3 said the fee violates the principles of an "open Internet," and goes against the FCC's proposed rules preventing broadband Internet providers from favoring certain types of traffic.

Comcast countered that a previous deal to allow Level 3's traffic had become unbalanced in favor of Level 3. Level 3's traffic has reportedly pushed Comcast's traffic five-fold and Comcast said since Level 3 is now acting like a content delivery network; it should pay ISP's for fast access to their network.

Comcast has to tread lightly on two fronts. First, the company is trying to secure regulatory clearance to buy majority control of NBC Universal from GE for $13.75 billion. The government is looking into concerns the company could wield undue power in the distribution once it takes control.

Second, Comcast has already been slapped down by the government for throttling BitTorrent users a few years ago. Combine that with the FCC's expected adoption of "net neutrality" rules that will prevent phone and cable companies from using their power to become online gatekeepers.

The FCC had no comment on the development between Level 3 and Comcast. Netflix also decline comment, but the problem with Comcast could impact the 17 million users who use Netflix's streaming service.

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