TWC to be hit with first complaint under FCC's new net neutrality rules

Time Warner Cable (NYSE: TWC) has been targeted for 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) said it has immediate plans to submit a complaint to the FCC, alleging that TWC is charging unreasonable rates to stream CNS video to its subscribers.

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. 

Speaking to the Washington Post, CNS chief executive Barry Bahraini said 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

Bahrami said TWC is in "direct violation" of the new FCC rules, which ban ISPs like TWC from slowing or blocking of web traffic. The rules also prohibit ISPs from charging online video suppliers for faster delivery once their video traffic hits the operator's network. 

The rules do not, however, clearly spell out how companies like CNS and TWC should negotiate private agreements that dictate how traffic flows into the ISP's network. 

Responded TWC: "TWC's interconnection practices are not only 'just and reasonable' as required by the FCC, but consistent with the practices of all major ISPs and well-established industry standards. We are confident that the FCC will reject any complaint that is premised on the notion that every edge provider around the globe is entitled to enter into a settlement-free peering arrangement."

For more:
- read this Washington Post story
- read this Engadget story
- read this Broadcasting & Cable story

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