Last week Netflix acknowledged that it has quietly been throttling the Netflix streams of companies like AT&T and Verizon for five years. Why? Netflix claimed it was to help these companies' customers better deal with usage caps, adding that it doesn't throttle streams to Sprint and T-Mobile because "historically those two companies have had more consumer-friendly policies." That Netflix was doing this covertly quickly raised the hackles of companies like AT&T, which claimed it was "outraged" by the revelations.
The American Cable Association went a step further, issuing a
statement calling for an FCC investigation, despite the fact only wireless streams were throttled (to 600 kbps).
AT&T said it was "disappointed, but not surprised, that Netflix used its immunity from the FCC's Net Neutrality rules to engage in this practice." The organization, which mostly represents smaller cable operators (but has NBC Universal as a member), also took aim at the FCC's net neutrality rules, calling them "horribly one-sided and unfair because it leaves consumers unprotected from the actions of edge providers that block and throttle lawful traffic."
The problem with that logic? Net neutrality rules were created specifically for broadband precisely because of limited competition in the sector. While a customer can stop using an "edge provider" like Netflix whose policies they don't agree with, that's often not an option when it comes to broadband providers. Were there more broadband competition, we wouldn't technically need net neutrality rules.
Still, the ACA was undaunted in its demand for an investigation.
"ACA calls on the FCC to initiate a Notice of Inquiry into the practices of edge providers and how these companies can threaten the openness of the Internet," the group said. "Under Section 706, the FCC has the authority to conduct such an inquiry and issue regulations, should it be deemed necessary."
A Netflix blog post states the company was only looking out for the nation's capped wireless users.
"We believe restrictive data caps are bad for consumers and the Internet in general, creating a dilemma for those who increasingly rely on their mobile devices for entertainment, work and more," Netflix said. The company added that it was interested in "striking a balance that ensures a good streaming experience while avoiding unplanned fines from mobile providers."
If there's one thing Netflix can be dinged for, it's for failing to be transparent when it has spent the last few years lecturing ISPs on transparency. The company says it's revealing a "data saver" control scheme in a few months that will give mobile users more control over their stream quality and Netflix data consumption.