In computer networking a peering agreement is a voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the users of each network. The pure definition of peering is settlement-free, "bill-and-keep," or "sender keeps all," meaning that neither party pays the other in association with the exchange of traffic; instead, each derives and retains revenue from its own customers.So why is this significant? These types of agreements have been between the big internet players, the Level 3's, and AT&T's of the world. What makes this more insidious are the reports that Comcast and Verizon have targeted Netflix traffic. Here is a post on Arstechnica.com discussing there discoveries. Also Comcast and Verizon have refused to install Netflix's free bandwidth solution Open Box on their networks.
What does this mean? This mans that Comcast and Verizon may be altering Netflix traffic to force them into a payed peering agreement. The fact that they do not want to work with Netflix is appalling. For the short term Netflix has agreed to pay Comcast, so Comcast should allow Netflix to work. In the long term this agreement sets a precedent for ISP's to discriminate or targeted traffic. And at the end of the day threatens Net Neutrality.
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