So before comcast and level3 had settlement free peering, everyone was happy.
Cue netflix comming to level 3, »
Netflix's Streaming Business Returns To Level 3 [45] commentsHuge increase in traffic will result, and the terms wont really be equal anymore.
Comcasts post clears this up. This is basically a peering dispute that level 3 tried to muddy up with talks of net neutrality. Stuff like this doesnt help the cause.
Anyone confused on this look up peering, paid peering, and settlement free peering.
If level 3 didnt like the terms they could have stopped peering, then they would have to reach comcast via some other paid transit provider, and comcast would have to reach level 3 via some other paid transit provider. Since level 3 has much more traffic to send, they would pay much more than comcast would, so thats why they went ahead with the deal.