Cogent Offers to Pay Capital Costs Incurred by Major Telephone and Cable
Companies Necessary to Ensure Adequate Capacity
WASHINGTON, March 21, 2014
WASHINGTON, March 21, 2014 /PRNewswire/ -- Today, Cogent Communications Group,
Inc. CEO Dave Schaeffer offered to resolve the impasse between Cogent and
major telephone and cable companies (Verizon, Comcast, AT&T, and Time Warner
Cable) over upgrading the connections necessary to exchange Internet traffic,
including streaming video traffic like Netflix, by paying the capital cost
required for these companies to upgrade the connections (as well as Cogent's
own costs) to ensure adequate capacity to deliver quality service to the
customers of Cogent and these ISPs that have refused to upgrade traffic
exchange capacity. Schaeffer said that for over a year customers of these
ISPs have been suffering from the bottleneck imposed by these carriers.
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"Cogent believes the traditional Internet model in which each party bears its
own capital costs to upgrade an interconnection should be the model for these
relationships but the reality of the gatekeeper power exercised by these
telephone and cable companies requires that Cogent accept these additional
costs in order to provide the highest quality Internet service possible," said
To be clear, Cogent is not offering to enter into paid peering arrangements
with these or any other networks. Rather, Cogent is simply willing, at this
time, to incur the capital costs associated with augmenting its
interconnections with these networks to address the current level of traffic
congestion. Cogent believes that these major telephone and cable companies
are attempting to leverage their monopoly on broadband residential Internet
connections to increase their profits by imposing tolls on traffic requested
by their customers and delivered by other Internet service providers.
Cogent believes that Title II classification is the optimal regulatory path to
eliminate these tolls and preserve the open Internet. In the meantime, Cogent
supports the FCC's effort to enforce and enhance the FCC's transparency rules
and today submitted comments to the FCC in which Cogent offered concrete
proposals that would advance the goals of the FCC's Open Internet Order.
Cogent looks forward to continuing conversations with the FCC and the Internet
community on these proposals and on the best ways to preserve a robust,
innovative and truly open Internet.
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1
facilities-based ISP, consistently ranked as one of the top five Internet
backbone networks in the world. Cogent specializes in providing businesses
with high speed Internet access, Ethernet transport and colocation services.
Cogent's facilities-based, all-optical IP network provides services in over
180 markets globally.
Since its inception, Cogent has unleashed the benefits of IP technology,
building one of the largest and highest capacity IP networks in the world.
This network enables Cogent to offer large bandwidth connections at highly
competitive prices. Cogent also offers superior customer support by virtue of
its end-to-end control of service delivery and network monitoring.
Cogent Communications is headquartered at 1015 31st Street, NW, Washington,
D.C. 20007. For more information, visit www.cogentco.com. Cogent
Communications can be reached in the United States at (202) 295-4200 or via
email at email@example.com.
Information in this release may involve expectations, beliefs, plans,
intentions or strategies regarding the future. These forward-looking
statements involve risks and uncertainties. All forward-looking statements
included in this release are based upon information available to Cogent
Communications Group, Inc. as of the date of the release, and we assume no
obligation to update any such forward-looking statement. The statements in
this release are not guarantees of future performance and actual results could
differ materially from our current expectations. Numerous factors could cause
or contribute to such differences. Some of the factors and risks associated
with our business are discussed in Cogent's registration statements filed with
the Securities and Exchange Commission and in its other reports filed from
time to time with the SEC.
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SOURCE Cogent Communications Group, Inc.
Contact: For Public Relations:Travis Wachter, + 1 (202) 295-4217,
firstname.lastname@example.org; For Investor Relations: + 1 (202) 295-4212,
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