Netflix and Level 3 spars with Comcast on fees

NEW YORK: Comcast Corp and Level 3 Communications , a key network partner of Netflix Inc , launched into a vicious public battle over fees,  Comcast is levying at Level 3 for delivering content such as movies to the cable company's customers.

Level 3, which recently won a deal to help video streaming provider Netflix deliver its service to consumers, accused Comcast on Monday of charging unfair fees, which it said it agreed to pay "under protest" to avoid service disruption.

But Comcast, the U.S. cable provider, said that telecommunications network operator Level 3 had "misportrayed" commercial negotiations, in which it said it had offered the same terms to Level 3 as to its rivals.

 The dispute comes as Comcast's proposed merger with NBC Universal is being reviewed by regulators and regulators are also examining so-called net neutrality rules aimed at ensuring nondiscriminatory delivery of Internet traffic to consumers.

Level 3 helps Netflix improve online video delivery by navigating it over less congested web routes. The operator called Comcast's demand for a fee an "abuse" by the dominant cable company and said it will ask U.S. regulators to take action against Comcast in the context of net neutrality.

John Ryan, a Level 3 legal official said "Prior to Comcast's demand, no other broadband access provider had demanded a toll in order to increase interconnection capacity."