Level 3 May Test FCC 'Open Internet' Rules In Comcast Fight

Level 3 Communications could mount the first major challenge under the Federal Communications Commission's recently adopted network neutrality rules, as the Internet backbone provider continues to accuse Comcast of improperly demanding payment to deliver content.

The dispute has implications for all Internet network providers and content companies. If Level 3 prevails in convincing regulators that Comcast shouldn't be allowed levy fees on networks that offload a disproportionate amount of data, it would change the economic model for how traffic is exchanged on the Internet. Level 3 argues that the FCC's network neutrality rules explicitly forbid Comcast and other residential broadband providers from charging anyone a "toll" to reach consumers. In its fight with Comcast, "we may decide to proceed under the Open Internet Order, or we may decide to proceed otherwise," Level 3 executive vice president and assistant chief legal officer John Ryan said in an interview. "Our objective is to get to the point where the parties have agreed on a fair and reasonable interconnection regime that doesn't require a toll for the delivery of content to Comcast eyeballs."