Monday, 20 April 2015 14:07

Optus to charge Netflix for faster access in Australia? Featured

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Australia’s No.2 telco, Optus, is looking at charging ‘OTT’ or over-the-top video streaming companies so their services are delivered at faster speeds to consumers.

One of the speakers at the 2015 CommsDay Summit is Allan Lew, CEO of Optus

Lew discussed the ability for OTT or ‘over-the-top’ streaming video providers to purchase the ability to deliver video at faster and smoother rates, with companies such as Netflix, Presto, Stan and others in the telco’s sights.

The issue of companies needing to pay to deliver services at faster speeds is one of the factors that kicked off the ‘Net Neutrality’ debate in the US, especially as Netflix had to pay US ISPs to guarantee Netflix streamed smoothly to customers.

In Australia, iiNet customers who also subscribe to Netflix were able to do so on an unmetered basis, without affecting their download limits, although this caused congestion on iiNet’s servers.

A quarter of iiNet’s capacity is reported to have been taken up by Netflix streaming, something that would be even higher when Presto, Stan and other online services are added to the mix.

Naturally, this caused iiNet customers disappointment, if not stronger feelings, as well as disappointment in Australia’s broadband infrastructure.

Optus’ move to want to start charging companies such as Netflix may also be one of the reasons why Netflix CEO Reed Hastings expressed ‘regret’ over having done unmetered deals with various Australian ISP, as reported here at iTWire.

 

You’d have to imagine that Netflix does not want to have to pay ISPs anything simply to have customers of those ISPs accessing an online service, which in this case is Netflix’s streaming video service.

Lew also said that that while net neutrality was simply offering the same standard service to all comers, Optus would like to offer those who want a better service, such as SVOD players, the opportunity to pay for the premium service.

Quite how you preserve Net Neutrality on the one hand while charging on the other hand is yet to be seen, but with Lew’s statements, it appears that the Net Neutrality debate has just been massively ignited in Australia and will presumably give the Australian Government, ACMA, the Department of Communications, NBN Co, ACCAN, ISPs, streaming media providers and customers plenty to talk about and debate over the rest of 2015.

The whole saga might even be good enough for Netflix to turn into its next blockbuster drama, Virtual Pirate Networks: Game of Pwns.

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Alex Zaharov-Reutt

Alex Zaharov-Reutt is iTWire's Technology Editor is one of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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