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Tuesday
Nov302010

Level 3: Comcast Put “Tollbooth” on Streaming Video

Photo Courtesy - Netflix, Inc.(PHILADELPHIA) -- Just as Netflix announced it would make streaming videos cheaper for customers, Internet provider Comcast has announced it will charge more to stream such content to its customers.

After Netflix announced they would use the service of Level 3 to help stream movies, Comcast countered by announcing they would charge Level 3 a fee to send that video to Comcast Internet users.

Level 3 has called the move an Internet “tollbooth” that is counter to the spirit of an open Internet.

“Comcast is putting up a tollbooth at the borders of its broadband Internet-access network, enabling it to unilaterally decide how much to charge for content which competes with its own cable TV and Xfinity-delivered content,” Level 3 chief legal officer Thomas Stortz said. 

Comcast – which has a bid to own NBC – denied the claim, saying the fee followed a move by Level 3 that would nearly double traffic sent through Comcast.

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