Netflix agrees to pay up to ensure smooth video downloads

Netflix agrees to pay up to ensure smooth video downloads

It's business as usual while the 'net neutrality' debate rages.

Despite the recent net neutrality arguments regarding the possibility of increased government control, Netflix announced that it has brokered an interconnection agreement with AT&T Inc to ensure smooth delivery of content to their users. The announcement comes as Netflix has been waging a public campaign against such fees, which they say represent tolls. Calls have been made to the Federal Communications Commission to review the market.

This agreement, which was completed in May, marks the third that Netflix has struck with major Internet service providers in recent months. Similar ‘traffic exchange agreements’ were brokered with Verizon Communications Inc in April and Comcast Corp in February.

Now that the deal is complete, both companies are working to create improved network connections, specifically for Netflix content to be streamed directly to AT&T’s servers. This will “improve the viewing experience for our mutual subscribers,” the companies’ representatives said. “We’re now beginning to turn up the connections, a process that should be complete in the coming days,” AT&T spokesman Michael Balmoris said.

This deal is in response to consumers who have complained to the FCC about an ongoing spat between Netflix and major Internet providers. Netflix users have experienced difficulties with download speeds for Netflix video. Both sides accuse each other of causing the slowdown, due to routing of information at peak times. This, in turn, opened the most recent debate about net neutrality.  The possibility still exists of additional regulation and government oversight.

The specifics of the interconnection agreements are secret. The FCC did not indicate any plans to begin regulation of the market, but moved to review current and future deals as of June 2014.

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