Comcast, Netflix prove the Internet is working

[Commentary] The news that Comcast and Netflix agreed to connect their networks ratifies the basic Internet model -- that of a vibrant, entrepreneurial, fast-paced, ever-changing, sometimes contentious, but usually cooperative, environment largely free of government interference. Netflix will, for a fee, now link its servers, containing its movies and TV shows, directly to Comcast, most likely in third party data centers. These direct connections at peering points around the nation will produce more robust connectivity and reliable capacity for Netflix and its customers. Some observers are upset that Netflix will pay Comcast instead of backbone providers. We’re not sure why. Other Internet firms have engaged in these “paid peering” relationships for years.

[Swanson is president of Entropy Economics LLC, a strategic research firm]