Netflix recently agreed to pay Comcast an interconnection fee, which allows the video rental company to connect directly to Comcast's servers.
That deal allows Netflix's movies to be
delivered significantly faster than in the past to Comcast's subscribers. But Netflix's CEO Reed Hastings has made it clear that he's not happy with the deal. He recently complained to the Federal
Communications Commission that “strong” net neutrality rules would prohibit Internet service providers from charging separate interconnection fees to companies such as Netflix or
intermediaries, like Cogent, Akamai or Level 3. “The essence of net neutrality is that ISPs such as AT&T and Comcast don't restrict, influence or otherwise meddle with the choices consumers
make,” he wrote.
Now, Sen. Al Franken (D-Minn.) -- among the most visible opponents of Comcast's proposed acquisition of Time Warner -- is asking Hastings to express his concerns to the
Senate. “As a popular provider of Internet content that competes directly with Comcast, Netflix is uniquely positioned to gauge the risks posed by the deal,” Franken writes.
He
goes on to ask Hastings whether he believes that a merger between the two cable companies will increase Comcast's ability to “extract payments from non-affiliated entities as a condition of
access to Comcast's broadband Internet consumers.”
Franken also takes the opportunity to criticize interconnection agreements, arguing that they can harm both consumers and content
producers. “My understanding is that Comcast's consumers and the press documented problems streaming Netflix videos over Comcast's broadband networks and that Netflix ultimately had to pay
Comcast an undisclosed sum to resolve the issue,” he writes. “If incidents like this become the norm -- as I fear is more likely if Comcast is allowed to acquire Time Warner Cable -- it
would have serious implications for consumers.”
Franken goes on to predict that the increased costs will make it harder for new content producers to reach consumers. What's more, he
says, those costs will probably be passed on to consumers. He adds that if Comcast can throttle traffic, it will be able “to undermine consumers' viewing options, steering them from competitors'
offerings to its own.”