Why the consumer is still held hostage in peering disputes

I love Netflix and I’ve long since abandoned using cable broadband.

Gigaom

Angry customers. Dueling blog posts. An FCC investigation. The most recent fight over peering practices between large ISPs and Netflix has raged for almost 10 months, and we are still at the point where each side is defending its point of view and the end consumer is still getting screwed when they try to watch streaming video.

We’ve talked a lot about why this is happening and each side’s arguments. Others have laid out how to get around the problem using virtual private networks that can hide the Netflix traffic. Verizon has been the latest ISP to face the wrath of customers. On Wednesday it tried to explain its position. On Thursday Level 3 explained why Verizon was full of crap and a customer tested his connection using the aforementioned VPN and discovered he could get 10x the speed.

But the core of the problem here isn’t…

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