Netflix is urging the FCC to reclassify the Internet as a telecommunications service, a move that they say would give the commission the solid authority it needs to establish robust net neutrality rules.
The streaming service’s position, outlined in a filing with the FCC on Wednesday, recommends that the commission take a bold regulatory move that is fiercely opposed by broadband providers like Comcast, AT&T and Verizon as unnecessary and burdensome. The Internet Assn., the trade association which represents major Internet companies like Netflix, Google, Facebook and eBay, stopped short of recommending such an approach.
The FCC currently classifies the Internet as an information service, or ‘Title I’ in regulatory jargon. Many public interest groups are recommending that the commission reclassify broadband as a “Title II” telecommunications service, giving the FCC the same kind of authority it has over the phone company.
But Netflix, in its filing, argues that “Title II provides [the FCC with] a solid basis to adopt prohibitions on blocking and unreasonable discrimination by ISPs. Opposition to Title II is largely political, not legal.”
It also said that the FCC could adopt such authority but stop short of using “overreaching regulation.” Rather, Netflix contends, it could reclassify broadband as a telecommunications service to reestablish the net neutrality rules that have been struck down in court “and could go further only in the face of truly troubling actions on the part of Internet access.”
Netflix’s position is not a surprise, given that its CEO, Reed Hastings, has pushed for strong net neutrality rules in blog posts. He also has urged the FCC to cover another issue of the Internet ecosystem, that of interconnection. Those are the agreements between networks to connect content for delivery to the consumer. Netflix reached such an agreement with Comcast earlier this year, but Hastings complained that Comcast and other ISPs were poised to exploit a potential new revenue stream. Comcast has objected to Netflix’s arguments, characterizing it as an effort by the streaming service to pass off costs to all Internet customers, even those who don’t subscribe to Netflix.
In their filing with the FCC, Netflix said that it is not a “free rider.”
“Netflix does not pay Comcast for transit. Nor does Netflix pay Comcast for priority treatment of its traffic. In effect, Netflix pays access fees — without which Comcast has refused to provide sufficient capacity for Netflix. movies and TV shows to enter its network and reach our mutual customers directly and without degradation.”
Isn’t it strange how something that seems so logical and a no-brainer, needs to be stated, petitioned and argued for?
How can you be opposed to net neutrality?
That being said, I will give Comcast a grudging note of agreement.
Say you have 10 users with a 20/2 connection. They all surf the net and watch cute cats on Youtube. They spend maybe 3 og 4 of their 20. That is fine.
But when the 10 users all watch HD movies on Netflix at the same time, they all use maybe 10-15 of their 20. And yes, that is what they pay for(!) – but I could easily imagine that Comcasts connections aren’t built for a situation where all their users are using all the internet all the time at the same time. Therefore they have expenses redesigning and updating their infrastructure.
Granted, that is their own problem, they sold the users the connections in the first place, but a small part of me actually sees where they’re comming from in wanting Netflix to chip in.
And I love my Netflix!
I’ve admired Netflix’s business model from the beginning, even as it negotiated the pitfalls of a then-untested market. One can tell in its battle with the broadbands that cool head and intelligence prevails at the streamer. Glad it’s on our side.