We are all well aware that Netflix has agreed to pay Comcast in order to get direct access to its customers, but it looks like the popular TV and movie streaming service will be paying another ISP very soon. According to Verizon CEO Lowell McAdam, Netflix and his company are in talks right now to finalize a paid interconnect agreement for direct peering to Verizon customers.
"It shows you don't necessarily need a lot of regulation in a dynamic market here. Doing these commercial deals will get good investment and good returns for both parties," Verizon CEO Lowell McAdam said in a recent interview.
Earlier in the week Verizon said that customers who use a lot of bandwidth should have to pay more money. He wasn't talking about Netflix in that instance, but customers who use the service and do things like watching streaming video from other services (Twitch, WWE Network, Hulu, Crackle, and YouTube, for example) download files (like 2+ GB games on Xbox One or PS4, for example) and other bandwidth intensive services (such as multiplayer gaming). The company didn't mention these activities by name, but generally these services do use a ton of bandwidth and consumers use them every day. In Verizon's dark and gritty future you'll probably have to pay a premium to continue using these services unabated…
With a victory over the FCC in the Federal Appeals Court related to the agency's Open Internet Order, Verizon has certainly been emboldened to make public comments and pressure bandwidth intensive services to pay up.
We'll have more on this story as it developers.
Source: RapidTV News