[Traditionally, these peering agreements were straightforward deals between bandwidth companies that operated on a principle of symmetry. Telecom companies would agree to exchange delivery services in order to ensure that data like phone calls were routed across the country. These pacts helped ensure that calls from New York to Los Angeles could be completed, even if it took a few networks to actually complete the call. You connect my phone calls, I’ll connect yours.
But with the explosion of high-bandwidth services like Netflix, which accounts for a massive amount of Internet traffic, the traditionally amicable peering relationship between bandwidth providers is starting to break down. Consumer broadband companies like Verizon and Time Warner Cable are increasingly demanding payment from intermediaries like Level 3 and Cogent in order to carry high bandwidth traffic in excess of peering agreements from other service providers. This feud is now harming Netflix service for consumers, according to the Wall Street Journal. (Time Warner Cable was spun off from TIME parent Time Warner in 2009.)
Read more: Netflix Peering Dispute with Verizon is Slowing Service | TIME.com http://business.time.com/2014/02/19/netflix-verizon-peering/#ixzz2toYI8oX1
An escalating battle between Netflix and the largest Internet service providers is degrading service for the streaming video company’s customers, according to multiplereports. The dispute, which involves secret negotiations about how Internet traffic is routed, has spilled into public view as the relationship between giant broadband providers like Verizon and online content companies like Netflix continues to deteriorate.
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