, Columnist
Introducing the Comcast Tax
Comcast's deal to charge Netflix for access to the network shows that Comcast can exert arbitrary pricing power over all communications with little fear of government intervention.
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This week, Comcast Corp. announced a deal under which it will charge Netflix Inc. for the right to deliver streaming video directly into Comcast's physical network. This is a game-changer: America's largest cable network is building a moat around its system and can now charge connecting networks for the privilege of sending traffic to its users.
The Federal Communications Commission needs to get on the case. Otherwise, high-capacity innovative uses of the Internet in U.S. will be subject to an arbitrary Comcast tax.