Level 3 Says Comcast Fee Is Meant to Guard TV Business
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Level 3 Communications Inc., accusing Comcast Corp. of setting up a “toll booth” for Web traffic, said the cable carrier is trying to protect its TV business by charging Level 3 for delivering video to its customers.
“Online distribution of movies, TV shows and other content threatens Comcast’s traditional ‘closed’ video distribution model,” the company said. Broomfield, Colorado-based Level 3, which provides broadband services to customers including Netflix Inc., made the statement in a 19-point public letter today.