This could potentially complicate Comcast's attempt to obtain FCC regulatory approval before the end of the 2010.�Level 3 Communications, which delivers Netflix online movies among other products and services, issued this statement today from chief legal officer Thomas Storz:
BROOMFIELD, Colo., November 29, 2010 -- "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.
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