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Level 3: Comcast Doesn't Have Right to Set Pricing for Network Access

Level 3 Communications fired back Tuesday at Comcast, asserting that
the dispute between the two companies isn't about network-peering terms
but whether the MSO should be allowed to set pricing for network access.

On Monday, the Internet backbone provider charged that Comcast forced Level 3 to pay recurring fees
to deliver video to cable customers. That, according to Level 3,
violates the Federal Communications Commission's principles of open
Internet access.

Comcast responded that Level 3 -- which earlier
this month landed Netflix as a major customer for its content
distribution network services -- was simply trying to avoid paying fees
the cable company normally charges other CDN providers.

said Level 3 is proposing to pump twice as much traffic onto the MSO's
networks. "Level 3 wants to compete with other CDNs, but pass all the
costs of that business on Comcast and Comcast's customers, instead of
Level 3 and its customers," said Joe Waz, Comcast senior vice president
for external affairs and public policy counsel.

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