Comcast's Level 3 Fee Might Fix the Net Video Fight

[Moritz Dispatch]

Scott Moritz
11/30/10 - 01:41 PM EST

Comcast's so-called video tax on Level 3 might be a sign that the
streaming media industry has found a workable fee agreement.

Ten days ago, Level 3 acquiesced to Comcast's request for a recurring
fee to deliver Internet video. Then Monday, Level 3 protested the
deal.

Commerce comes first, it seems. Complaints about open Internet policy
(read: Net neutrality) apparently come second.

Level 3, mindful that Comcast is under review for its merger with NBC
Universal(NBCU), said in a statement that it wants regulators to "take
quick action to ensure that a fair, open and innovative Internet does
not become a closed network controlled by a few institutions with
dominant market power."

But regulators might just applaud the fact that two industry giants
have actually come to terms on a key competitive point without any
federal intervention.

"Clearly Comcast felt it was in the right, knowing they had the NBC
Universal review pending," said Bay Bridge Capital's Blake Bath.




Just when the Internet toll debate was about to heat up, Level 3 paid
it, with regrets: http://goo.gl/ZVVmp