Light Reading
Verizon has sent a cease-and-desist letter to Netflix after the online streaming company laid the blame for service slowdowns directly at the telco's feet.

Verizon Threatens to Sue Netflix

Mari Silbey
6/6/2014
50%
50%

In the latest episode of the Netflix streaming saga, Verizon is now threatening to take legal action in response to a notice that Netflix has started displaying for subscribers.

A Verizon Communications Inc. (NYSE: VZ) customer noted the new alert earlier this week when his Netflix service slipped into buffering mode. On the buffering screen, Netflix Inc. (Nasdaq: NFLX) included a warning that "The Verizon network is crowded right now," laying blame for the service slowdown directly at the operator's feet. The telecom company is having none of it, however. In a counter move, Verizon has now sent a cease-and-desist letter to Netflix, opening the door to a potential lawsuit.

Netflix recently signed paid interconnection agreements with both Verizon and Comcast Corp. (Nasdaq: CMCSA, CMCSK) in an effort to improve service for customers on those broadband networks. However, despite working out those deals, the online video provider is clearly not content with the content delivery situation. Netflix CEO Reed Hastings has continued to push loudly for strong net neutrality rules, which he says should prevent "ISPs from charging a toll for interconnection to services like Netflix, YouTube Inc. , or Skype Ltd. , or intermediaries such as Cogent Communications Group Inc. (Nasdaq: CCOI), Akamai Technologies Inc. (Nasdaq: AKAM), or Level 3 Communications Inc. (Nasdaq: LVLT), to deliver the services and data requested by ISP residential subscribers." (See Netflix CEO Wants 'Strong' Net Neutrality .)

While Netflix continues to fight its battle in the press, Verizon says it's ready to take the latest dispute to court. In addition to demanding that Netflix take down the new buffering alerts, Verizon wants the company to provide documentation proving that the streaming problems are all Verizon's fault, and a list of customers who received the incriminating message.

In the cease-and-desist letter, which DSLReports has posted online, Verizon specifically stated, "Failure to provide this information may lead us to pursue legal remedies, and Verizon reserves all rights in that regard."

— Mari Silbey, special to Light Reading

(34)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 4   >   >>
Duh!
50%
50%
Duh!,
User Rank: Light Sabre
6/10/2014 | 9:33:00 AM
Re: Not ever
Yup. 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
6/9/2014 | 7:25:25 PM
Re: Not ever
Duh!, Don't you mean AT&T and Cogent? seven
Duh!
50%
50%
Duh!,
User Rank: Light Sabre
6/9/2014 | 5:12:04 PM
Re: Not ever
The throughput of any data flow is a fair share of the capacity of the bottleneck link.  Since a fair share the bottleneck link between you and the Speedtest server is >15 Mb/s, and the bottleneck link between you and Amazon Prime is >10 Mb/s, that means that the bottleneck link is not being shared with at least Speedtest and Amazon Prime.  In fact, it is the peeriing link between AT&T and Netflix.  The performance decline is a textbook example of a load-throughput curve:  add more traffic to a link, and it congests.  Amazon, unlike Netflix, has paid peering with AT&T, and orders more peering links whenever they start to congest.

No sympathy for Netflix on this one.
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
6/9/2014 | 2:12:25 PM
Re: Curious...
KBode, I'd like to see if I can confirm with you your understanding of the issue.

Tier 1s don't pay for interconnect, they simply turn up more connections between each other alternating the connection fee at designated interconnect facilities.

Cogent, has gain huge amounts of CDN content, including those that house Netflix, other Tier 1s don't deploy CDN caches like smaller ISPs because CDNs and content providers come to them for direct access.

Cogent decides that since its generating most of the traffic out, it shouldn't have to pay the connection fee anymore and if other carriers want more they can pay for it.  Of course, other Tier 1s refuse.

Thus, congestion starts to build up between the Tier 1s and in particular Netflix suffers.

Comcast and Netflix agree to a fee where Netflix gains direct access to their customers (not sure if by cache clusters or some other direct access).  Cogent is the loser in this arrangement and Netflix may see higher prices in the future.

Everyone expects Netflix and Vz to make a similar agreement.

(Speculating) --> Something goes wrong with the deal, and Netflix is doing Netflix way of doing things.  And Vz is doing Vz ways of doing things.

Close?
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/9/2014 | 2:07:32 PM
Re: Not ever
If you are using Amazon Prime for the same type of content as Netflix, and Amazon Prime download is an order of magnitude higher, the issue could be either (a) Netflix servers and network setup, (b) the ISP capping bandwidth for Netflix, (c) a combination of (a) and (b), or (d) some other reason. And so far, Netflix hasn't posted its "your ISP sucks" message to U-Verse users (at least it hasn't been reported). From your example, I'd say the bigger issue is signing up (and paying for) 25MB service and getting only 15.
desiEngineer
50%
50%
desiEngineer,
User Rank: Light Beer
6/9/2014 | 1:50:56 PM
Re: Not ever
Not sure how nasty this insinuation is.  I have u-verse (25Mbps, measured at about 15Mbps using Speedtest).  Until about 5 months ago, my Netflix service was pretty good, roughly 3Mbps in peak hours.  Nowadays, I get about 0.7 Mbps on Netflix.  I have not seen anything higher than about 1.1 Mbps in a long time.  On the other hand, Amazon Prime is consistently over 10Mbps.  Tell me ATT isn't messing with my Netflix.  I wouldn't put it past Verizon to be doing the same.

Yeah, it could be the Netflix server farm, but I doubt it.  Not for this long, consistently.

-desi
desiEngineer
50%
50%
desiEngineer,
User Rank: Light Beer
6/9/2014 | 1:50:54 PM
Re: Not ever
Not sure how nasty this insinuation is.  I have u-verse (25Mbps, measured at about 15Mbps using Speedtest).  Until about 5 months ago, my Netflix service was pretty good, roughly 3Mbps in peak hours.  Nowadays, I get about 0.7 Mbps on Netflix.  I have not seen anything higher than about 1.1 Mbps in a long time.  On the other hand, Amazon Prime is consistently over 10Mbps.  Tell me ATT isn't messing with my Netflix.  I wouldn't put it past Verizon to be doing the same.

Yeah, it could be the Netflix server farm, but I doubt it.  Not for this long, consistently.

-desi
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
6/9/2014 | 1:31:48 PM
Re: Curious
@Phil_Britt - agreed.  A lot of this appears to be "public" positioning for image, and as a deterrent to further erosion of their interests.

 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
6/9/2014 | 1:25:32 PM
Re: Curious
@KBode, I think you have the right focus on transparency.  That should determine the "reality" of whether there truly is a technical limitation affecting the Netflix delivery or not.  Plus, that would go a long way in settling the battle at large - whether it is truly legal or PR.

 
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
6/9/2014 | 12:40:46 PM
Re: Curious
Though in some legal aspects "corporations are people" (I could go on a rant about that idea, but this isn't the place), I think any attempt by Verizon to sue would stretch this concept a bit far. Also, though I'm no lawyer and the rules may have changed, I believe truth is a defense in this matter.

But it's also important that Verizon defend itself in the court of public opinion, regardless ot the legality (or lack thereof) of the company's response to Netflix.
Page 1 / 4   >   >>
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Huawei Video Resource Center
Innovating Access Technology With G.fast

10|1|14   |   3.42   |   (0) comments


Exploring the potential of G.fast technology from the point of view of the Broadband Forum, Huawei – and an end-user.
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Comcast Turns Off Streampix
Mari Silbey, Independent Technology Editor, 9/26/2014
Like Us on Facebook
Twitter Feed