Sunday, March 23, 2014

Cogent Offers to Pay Capital Costs for Interexchange Upgrade

Cogent Communications has offered to pay the capital cost required to upgrade the exchange between its network and major telephone and cable companies (Verizon, Comcast, AT&T, and Time Warner Cable). The offer would cover the capital cost of upgrading the interexchange to ensure adequate capacity to exchange Internet traffic, including streaming video traffic like Netflix.

The company hopes its offer will resolve the impasse caused by ISPs would have refused to upgrade traffic exchange capacity. Cogent is not offering to enter into paid peering arrangements with these or any other networks.

"Cogent believes the traditional Internet model in which each party bears its own capital costs to upgrade an interconnection should be the model for these relationships but the reality of the gatekeeper power exercised by these telephone and cable companies requires that Cogent accept these additional costs in order to provide the highest quality Internet service possible," said Dave Schaeffer, CEO of Cogent.