Submission + - Comcast VS Level 3 (zdnet.com)
shoehornjob writes: Comcast and Level 3 are disputing the practice of peering between networks. For those who don't know, peering is an agreement made between two (backbone) networks to allow an equal exchange of traffic. If one network passes traffic over the agreed amont to the other it will likely be charged an excess fee. According to the Comcast blog http://blog.comcast.com/ dated Nov 29 and 30 Level 3 is attempting to pass traffic at a 5:1 ratio without incurring a charge for the excess. Comcast has already stated it will accept traffic levels no more than 2:1 without any additional fee. Level 3 is doing it's best to spread FUD by claiming that"big bad Comcast is attempting to shake down the content delivery system" and they are blocking Netflix. Both companies are waging a public realtions campaign to spin things their way. ZDNET has some interesting insight from an unnamed Barclays Capital analyst "The awkward timing makes us wonder why, assuming (Comcast) is contractually due the payments, it would choose to pursue them now, given the FCC’s sensitivity around online video, rather than just letting the issue sit until after the NBCU deal is approved. As such, we believe that Level 3 may be the one pushing the peering payment issue now, given that its leverage would be much lower once the NBCU deal is approved". I did a quick Google search for Level3 blog and couldn't find any official response from Level 3 so for now it seems they are content to spread FUD in the court of public opinion.
Disclosure: I am an employee of Comcast. I have tried to present balanced information based on multiple sources and my opinions expressed on this or any website are my own and do not in any way represent my employer.
