http://www.local10.com/news/money/Netflix-speeds-lag-for-Verizon-users-amid-dispute/24597560

Having trouble streaming "House of Cards?" A stand-off involving Verizon and 
Netflix may be to blame.

Streaming speeds for Verizon FiOS customers dropped by 14 percent between 
December and January, according to Netflix. Meanwhile, Netflix speeds on most 
other Internet service providers held steady during that time period.

The slowdown comes amid a stand-off reported this week by The Wall Street 
Journal over whether broadband providers like Verizon and AT&T will charge 
Netflix to carry its videos.

Netflix relies heavily on third parties -- primarily Cogent Communications -- 
to deliver content from its servers to Internet service providers. 
Traditionally, broadband companies and bandwidth providers like Cogent haven't 
charged one another, on the assumption that traffic that flows back and forth 
over their networks will even out over time.

But recently, broadband companies have begun demanding payment when they feel 
they're being overburdened in the exchange.

Verizon wants Netflix to pay for the enormous amounts of traffic that get sent 
over its FiOS network, the Journal reported. Netflix is a data hog, its 
streaming content sometimes making up around a third of traffic on U.S. 
broadband networks during peak hours.

Cogent CEO Dave Schaeffer said Verizon was "using their monopoly power to put a 
toll road in place."

"They're refusing to improve the connections between our network and their 
network," he told CNNMoney.

A Netflix spokesman declined to comment, but the company in the past has 
characterized the slowdown in Verizon's streaming speeds as a consequence of 
network congestion.

Verizon spokeswoman Linda Laughlin denied that there was any conflict with 
Netflix.

"Verizon continues to be open to ideas about the best ways to alleviate 
congestion so all customers benefit from the best quality of service possible," 
she said. "Verizon treats all traffic equally."

The broadband industry has been in the spotlight in recent weeks over concerns 
about consolidation and net neutrality, the principle that Internet service 
providers should avoid discriminating among various kinds of online traffic.

A federal appeals court stuck down the Federal Communication Commission's net 
neutrality rules last month, though the ruling did affirm the FCC's authority 
in principle to regulate broadband Internet service.

The FCC said Wednesday that it planned to issue new rules "to preserve Internet 
freedom and openness" under a legal framework that will better stand up to 
scrutiny in the courts. Net neutrality advocates are hopeful that the new rules 
will prevent broadband providers from restricting access to certain sites or 
imposing fees for certain Web content.

Concerns about potential abuses in the industry gained additional urgency last 
week following news that Comcast intends to buy Time Warner Cable, a deal that 
would combine the two biggest cable companies in the United States.

The deal would give Comcast even more leverage over the country's marketplace 
for television, broadband Internet and phone services. It's likely to face 
significant scrutiny from federal regulators.

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