Verizon (VZ) broadband subs are complaining about receiving low-quality Netflix (NFLX) streams, and the culprit appears to be Verizon's unwillingness to upgrade its network to handle more Netflix traffic from fellow carrier and Netflix bandwidth supplier Cogent (CCOI). The dispute drives home the thorny relationships Netflix, which now makes up ~1/3 of U.S. Web traffic during peak hours, has with many ISPs, in spite of its efforts to relieve congestion via its Open Connect CDN (some ISPs are on board, some aren't). In Verizon's case, the carrier's efforts to compete with Netflix via its Redbox Instant JV could also be a factor
Sage, there is so much going on right now. Far as the backbone network, that has already been upgraded several times by all networks. Everyone wants more bandwidth and we'll have to see how this telecom thing plays out. I still wouldn't sell Verizon right now. They still have a great marketing tool [even during nba games last night.] - I did find it interesting the SPRINT and DISH deal didn't pan out... JAPAN = new friend?sofbank
The real answer is - Frontier charges its customers for but not limited to local number portability costs, CALEA compliance costs and other regulatory related fees and cost. The Regulatory Recovery Fee also includes similar cost incurred in foreign countries.