[governance] FW: [IP] Level 3 Communications Issues Statement Concerning Comcast

[Lee W McKnight]

FYI,

All you fans of net neutrality can say 'I told you so'...except sounds easily dealt with as matter of abuse of a dominant position. 

Meaning no new laws or regs required to deal with this...my instant interpretation of the Level 3 v Comcast case, coming to a congressional hearing or regulatory body soon.

Lee
________________________________________
From: Dave Farber [dave at farber.net]
Sent: Monday, November 29, 2010 5:24 PM
To: ip
Subject: [IP] Level 3 Communications Issues Statement Concerning Comcast

Begin forwarded message:

<http://www.marketwatch.com/story/level-3-communications-issues-statement-concerning-comcasts-actions-2010-11-29?reflink=MW_news_stmp>http://www.marketwatch.com/story/level-3-communications-issues-statement-concerning-comcasts-actions-2010-11-29?reflink=MW_news_stmp

Level 3 Communications Issues Statement Concerning Comcast’s

2010-11-29 21:38:00.326 GMT

  Level 3 Communications Issues Statement Concerning Comcast’s Actions

Business Wire

BROOMFIELD, Colo. -- November 29, 2010

Level 3 Communications, Inc. (NASDAQ: LVLT) today issued the following

statement, which can be attributed to Thomas Stortz, Chief Legal Officer of

Level 3:

“On November 19, 2010, Comcast informed Level 3 that, for the first time, it

will demand a recurring fee from Level 3 to transmit Internet online movies

and other content to Comcast’s customers who request such content. By taking

this action, Comcast is effectively putting up a toll booth 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. This action by Comcast threatens the open Internet and is a

clear abuse of the dominant control that Comcast exerts in broadband access

markets as the nation’s largest cable provider.

“On November 22, after being informed by Comcast that its demand for payment

was ‘take it or leave it,’ Level 3 agreed to the terms, under protest, in

order to ensure customers did not experience any disruptions.

“Level 3 operates one of several broadband backbone networks, which are part

of the Internet and which independent providers of online content use to

transmit movies, sports, games and other entertainment to consumers. When a

Comcast customer requests such content, for example an online movie or game,

Level 3 transmits the content to Comcast for delivery to consumers.

“Level 3 believes Comcast’s current position violates the spirit and letter of

the FCC’s proposed Internet Policy principles and other regulations and

statutes, as well as Comcast’s previous public statements about favoring an

open Internet.

“While the network neutrality debate in Washington has focused on what actions

a broadband access provider might take to filter, prioritize or manage content

requested by its subscribers, Comcast’s decision goes well beyond this. With

this action, Comcast is preventing competing content from ever being delivered

to Comcast’s subscribers at all, unless Comcast’s unilaterally-determined toll

is paid – even though Comcast’s subscribers requested the content. With this

action, Comcast demonstrates the risk of a ‘closed’ Internet, where a retail

broadband Internet access provider decides whether and how their subscribers

interact with content.

“It is our hope that Comcast’s senior management, for whom we have great

respect, will closely consider their position on this issue and adopt an

approach that will better serve Comcast and Comcast’s customers.

“While Comcast’s position is regrettable, Level 3 remains open and willing to

work through these issues with Comcast. However, Level 3 does not seek any

‘special deals’ or arrangements not generally available to other Internet

backbone companies.

“Given Comcast’s currently stated position, we are approaching regulators and

policy makers and asking them to take quick action to ensure that a fair, open

and innovative Internet does not become a closed network controlled by a few

institutions with dominant market power that have the means, motive and

opportunity to economically discriminate between favored and disfavored

content.“

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