& cplSiteName &

Netflix Adds AT&T to Pay-to-Peer List

Mari Silbey
7/30/2014
50%
50%

In the latest chapter in the net neutrality saga, Netflix has snared a paid interconnection agreement with AT&T in an attempt to improve video quality for AT&T's Internet subscribers, similar to Netflix's earlier deals with Comcast and Verizon, Mashable reports.

Despite a steady stream of invective between Netflix Inc. (Nasdaq: NFLX) and the service provider community, the online video company continues to add to its list of paid peering deals across the US. These direct connections with last-mile Internet providers ensure that Netflix's video programming has a clearer path to consumers, increasing the quality of service and improving the company's relationship with its customers. (See Blog Wars: Verizon, Level 3 Duke it Out.)

Paid peering agreements are only one way that Netflix optimizes online video delivery. The company also partners with transit providers such as Cogent Communications Holdings Inc. (Nasdaq: CCOI) and Level 3 Communications Inc. (NYSE: LVLT), and it works with some ISPs to install caching appliances in the last-mile network.

However, the paid interconnection agreements with ISPs have sparked controversy because they illustrate the fact that content companies can buy premium access to Internet subscribers. Opponents say these connections create Internet fast lanes, and that they hurt smaller companies that can't afford the cost of high-quality video delivery. (See Comcast's Cohen: Define Internet Fast Lanes.)

Transit providers aren't sitting out the fight either. These middle-mile network companies have repeatedly complained that ISPs aren't giving them a fair deal in peering agreements, and that service providers are even allowing specific peering points to degrade in order to draw the ire of consumers. The Federal Communications Commission (FCC) has agreed to look into the problem even though Chairman Tom Wheeler has made it clear he doesn't believe interconnection deals fall under the umbrella of net neutrality. (See Net Neutrality: Level 3 Sees Peering Progress Soon and Net Neutrality Redux? FCC Probes Peering Problems.)

Further complicating the issue is the fact that even when paid agreements have been struck directly between Netflix and ISPs, the quality of service doesn't necessarily improve right away. While Comcast Corp. (Nasdaq: CMCSA, CMCSK) subscribers have seen quality improvements since Netflix agreed to pay the service provider for a direct connection, Verizon Communications Inc. (NYSE: VZ) subscribers haven't been so lucky. This may be in part because it takes time to upgrade connections, and may also be in part because Netflix is still relying to some extent on transit partners (which are also fighting with ISPs) for delivery to Verizon customers.


For more of Light Reading's coverage of paid peering agreements and the net neutrality battles, check out our OTT video content channel.


According to a statement by AT&T Inc. (NYSE: T), the company reached its agreement with Netflix back in May and has been working to add interconnect capacity since that time. "We’re now beginning to turn up the connections," said a spokesperson, "a process that should be complete in the coming days."

— Mari Silbey, special to Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Michelle
50%
50%
Michelle,
User Rank: Light Sabre
7/31/2014 | 10:30:06 PM
Re: Pay To Play
I'm really not looking forward an outcome that includes consumers paying more...
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
7/31/2014 | 10:53:03 AM
Verizon
I seriously doubt that time to upgrade has anything to do with a delay in Netflix-Verizon direct peering.  I speculate that its deal making gone awry.  The big loser in this is Cogent, more direct peerings means less need for its CDN for Netflix.
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
7/30/2014 | 5:27:48 PM
Pay To Play
This is indeed a complicated issue with good arguments on both sides about the equitable solutions. Somehow though it doesn't just seem that Netflix's actions are going to bode well for the others in the industry. As Netflix goes, so does the rest of the world? Where does the line end as costs rise, and consumers ultimately pay higher amounts to access internet services?
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
Cisco Throws 5,500 Overboard on Cruise to Richer Waters
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/17/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
Slow Roll Builds for DOCSIS 3.1
Mari Silbey, Senior Editor, Cable/Video, 8/17/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.