Netflix Denies Usage of Internet ‘Fast Lanes’

LOS GATOS: Despite being accused by the FCC and other organizations of trying to secure Internet "fast lanes," Netflix has issued an open letter, written by VP of content delivery Ken Florance, to clear up misconceptions about its payments to several ISPs.

In a blog entry posted this morning, Florance asserts that, "while some media reports have suggested otherwise, Netflix and other Internet content providers are not using fast lanes to deliver their content to consumers."

A so-called fast lane on the Internet is where one person's data traveling on an Internet Service Providers' (ISPs) last-mile network gets priority delivery over another's. Florance says that this creates two fundamental problems: one is that it gives ISPs a "perverse incentive" to boost revenues by allowing their networks to congest; secondly, it gives them "outsize power to pick winners and losers on the Internet." In short, those who can't pay for fast lanes will suffer, which he argues undermines the innovative power of the Internet.

Florance acknowledges that Netflix and others have been forced to pay providers such as Comcast, Verizon, AT&T and Time Warner access fees, but these were to "reach our mutual customers." He added, "Without those payments, ISPs allowed these connection points to congest, resulting in a poor video streaming experience for Netflix users on those networks. While Netflix was able to meet the demand for payments, we continue to believe this practice stands in contrast to an open Internet and all its promise.

"After we paid up, our traffic began moving at the same speed as everyone else not facing congestion. This is important, because this is where confusion often arises. Netflix and other content providers are not using fast lanes when they connect with an ISP’s last-mile networks. That is true in cases where we’ve had to make payments as well as when ISPs take advantage of Netflix’s Open Connect Content Delivery Network (CDN). Open Connect brings Netflix content to the location of an ISPs choice, usually at a common Internet exchange or through localized caches. It doesn’t prioritize the data Netflix users have requested. Rather it makes delivery of it more efficient for us and for the ISP."

Florance ended his letter by stating that right now there is no such thing as a paid fast lane on the Internet, and "that's a good thing."