Netflix, Comcast deal speeding up service, analyst says

February 24, 2014

Legal Affairs, Technology

Jeff Kagan, a veteran telecom industry analyst based in Atlanta, likes the arrangement Netflix and Comcast have reached.

searchHere is what he has to say:

searchComcast and Netflix seem to have finally struck a deal that will benefit them both, and their customers. This is just one of many such deals that will have to be reached between a variety of companies representing both the providers of high speed Internet and those who want to use that bandwidth to reach customers and build their businesses.

Net Neutrality is often a confusing topic. I see the point both sides are making and they both make sense. Yet we have to make a decision that is fair to all, heading in one direction or the other and stick to it.

This problem is one of many that is challenging the online world. Companies like Netflix need fast download speeds for their customers to download movies and television shows. Yet companies like Netflix or Google don’t provide bandwidth. They require customers to get Internet connectivity from other companies like cable television or telephone companies

Netflix alone uses roughly one third of all download capacity of the Internet each night. However, they have not paid for that usage. Companies like Netflix and Google have been on the side of using bandwidth provided by companies such as Comcast, Time Warner, AT&T and Verizon, and paying nothing for it.

That means these providers must continue to invest billions of dollars every year to keep up with the rising demand.

Most companies are not a problem. However a few are and they should bear some of the financial weight. Customers have taken the side of Netflix and Google so they don’t have to pay more if they use these services. The problem is the entire system was not set up correctly from the beginning. Now we have to try and retrace our steps and set up the system to be fair to all competitors and players.

Will this be the final solution? Probably not, but it is a good start and may set the industry on a healthy course, finally. We’ll see what happens.

 

 

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