Comcast Demands Recurring Fee From Level 3 Communications, a Netflix Streaming Provider


Level 3, who recently signed a deal to become the primary provider for streaming Netflix content, was pressured by Comcast to pay a “recurring fee” “to transmit Internet online movies and other content to Comcast’s customers who request such content.” After a few days of negotiating, Level 3 paid the fee, ensuring uninterrupted service for Netflix subscribers.

What’s the big deal? Companies like Comcast that own a lot of Internet infrastructure can levy extra fees depending on the type of content that is being sent through their pipes. That’s why net neutrality is important.

There’s another important consideration: didn’t Comcast and other similar companies receive massive amounts of government assistance in the form of tax breaks? In other words, citizens like you funded the connecting pipes that Comcast operates. I am glad I’m not a Comcast customer anymore.