As expected, Time Warner Cable (NYSE: TWC) received the first complaint under the FCC's new net neutrality rules, which just took effect on June 12.
San Diego, Calif.-based Commercial Network Services (CNS) filed a complaint with the FCC claiming that it's being charged unfair rates to deliver its streaming video service to consumers. According to the complaint, Time Warner Cable has violated the FCC's rules against paid prioritization, which is illegal under the FCC's net neutrality rules. The company wants TWC to carry its traffic for free.
TWC maintains that what it charges CNS is consistent with industry standards. In addition, it said that the FCC's rules only cover the so-called "last-mile" between a consumer's device and the Internet provider. It doesn't address the part of the Internet where Time Warner Cable and CNS are having their dispute.
CNS operates webcams in places like the San Diego Harbor. According to the company, its video streams are popular with military personnel, who keep tabs on U.S. Naval vessels coming in and out of San Diego. The company also bills its Fourth of July event as the biggest fireworks webcast on the Internet.
Earlier this month CNS chief executive Barry Bahrami told the Washington Post that TWC is currently delivering degraded CNS video through its network and on to its subscribers.
"This is not traffic we're pushing to Time Warner; this is traffic that their paying Internet access subscribers are asking for from us," Bahrami told the Post.
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