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> Not understanding this is why HN and other tech news outlets are in outrage. This is just how peering arrangements work. Unless your traffic is balanced you need to pay the cost of transit, simple as that. ... > Now, the reason Netflix is bitching is they -are- paying for transit.. they just aren't paying enough to the right people. Their problem is that their transit providers don't have sufficiently large links to Verizons network.

It is mainly because of 2 things:

1) If you pay for X internet access, you expect to get X internet access. You don't expect to get a restricted version of what Verizon puts out in its marketing. It isn't reasonable to expect a lay person to see it differently.

2) https://www.netflix.com/openconnect

Netflix is willing to let them put their hardware inside their network. Verzion, et al. refuse unless they receive "special compensation" above and beyond what is normal [normal being defined as Netflix's relationship with companies like Frontier, British Telecom, TDC, Clearwire, GVT, Telus, Bell Canada, Virgin, Cablevision, Google Fiber, Telmex].

Verizon, et al. can complain all they'd like. However, they want special treatment above and beyond what a small ISP like Google gets. Their argument is "because Verizon has a monopoly on its customers internet access". :/



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