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Netflix Strikes Interconnection Deal With AT&T

AT&T is the latest ISP to strike a direct interconnection deal with Netflix that should improve buffering for Netflix users on AT&T's network. While no official announcement has been made by either company, anonymous insiders tell Mashable that the deal took effect today. Netflix struck a direct interconnection deal with Comcast back in February, and Verizon Verizon back in April.


A report by Netflix released earlier this month showed that while streaming performance on Comcast's network has improved since the deal, Verizon Netflix streaming performance is actually getting worse. AT&T U-Verse and DSL streaming performance has been as bad or worse than Verizon's.

Both Netflix and Level3 have accused AT&T, Verizon and Comcast of intentionally leaving peering points un-upgraded to force content companies like Netflix to pay them for direct interconnection to bypass these intentionally congested links.

Despite the noise made by Netflix about how ISPs are using their massive size to extract an additional toll, the company seems content to pay companies for direct interconnection. Despite the noise made by both sides about these deals, the insiders speaking to Mashable note that "an announcement isn't planned" and that details of the agreement will remain confidential.

The FCC claims to be conducting an ongoing investigation into allegations that last mile ISPs are engaged in anti-competitive behavior.

Most recommended from 115 comments


DigitalManny
join:2014-01-08
Glendale, CA

4 recommendations

DigitalManny

Member

Netflix should stop worrying about this crap

And start adding more movies or TV Shows soon no one is getting fooled about the movies they constantly recycle that was expired last month and will be added back in August.
AVonGauss
Premium Member
join:2007-11-01
Boynton Beach, FL

4 recommendations

AVonGauss

Premium Member

Interconnect Deals

Despite the noise made by Netflix about how ISPs are using their massive size to extract an additional toll, the company seems content to pay companies for direct interconnection. Despite the noise made by both sides about these deals, the insiders speaking to Mashable note that "an announcement isn't planned" and that details of the agreement will remain confidential.

NetFlix knew the very day several years ago when they decided to develop their own content delivery network that they would need and want either direct placement or direct connections to major ISPs. To make the counter argument to NetFlix / Level3's assertion; NetFlix seems to have thought they could leverage their sizable customer base and popularity to "convince" ISPs to either provide a free or extremely low cost interconnection.

With all of the public stunts and stupidity, I think it's unlikely the agreements will remain "confidential" indefinitely. Though, how many will still be paying attention when the details are released is debatable.