At the beginning of the month, FCC Commissioner Ajit Pai sent Netflix a curious letter (pdf). In it, Pai politely accused Netflix of being a hypocrite on net neutrality, strongly hinting that because Netflix operates a free CDN (Open Connect, which ISPs can and have refused to use), they're violating net neutrality by advocating for "fast lanes." Both sides of the net neutrality debate have repeatedly used "fast lanes" as a sort of dirty word without functional context, and Pai's letter was no exception.
Pai's letter also accused Netflix of undermining open streaming standards because it refused to participate in the
Streaming Video Alliance.
Founding members of this alliance include Charter, Comcast and Frost and Sullivan analyst Dan Rayburn, all of which have spent the last year or so claiming that it's Netflix that's the villain in the modern net neutrality rules. As such, Netflix's lack of enthusiasm at joining the coalition isn't particularly surprising.
In a letter (pdf) responding to Pai's inquiries, Netflix explains that CDNs are very common, and the use of ISP-end content caching hardware is a normal part of network operations -- and not a neutrality violation:
quote:
"Open Connect is not a fast lane Open Connect does not prioritize Netflix data. Open Connect uses 'best efforts' Internet services into and out of its content caches. When an ISP asks Netflix to localize an Open Connect cache within its network, it does not disadvantage other Internet content. To the contrary, Open Connect helps ISPs reduce costs and better manage congestion, which results in a better Internet experience for all end users. Only ISPs can speed up or slow down data that flow over their last mile. When Netflix directly interconnects with an ISP, Netflix data does not travel faster than other Internet content—unless an ISP is artificially constraining capacity to other data sources."
As for not joining the Streaming Video Alliance, Netflix notes that their Open Connect CDN uses
open source software and readily available hardware components. For months, Netflix,
Level 3, Cogent and consumer advocates have claimed that ISPs are intentionally refusing to upgrade peering hardware to create congestion and force Netflix to pay extra for direct interconnection. The FCC is investigating the charges.
Pai's sudden interest in the fairness of Netflix's CDN is curious coming from a Commissioner that was formerly employed by Verizon, is opposed to net neutrality rules, frequently absent in conversations about the sector's lack of competition, and an avid supporter of industry consolidation. Given Netflix's support of neutrality the company has seen a ramp up in attacks from carriers, loyal politicians and various industry think tanks, who've collectively been trying very hard to argue that ISPs are the good guys in the net neutrality debate.
Netflix Pai