Verizon, AT&T Expects Netflix to Pay them for Faster Internet Access

Verizon and AT&T, the two top telecommunications company in the United States, are reportedly expecting Netflix to pay them for providing faster Internet access after customers of the streaming media provider complained about slow Internet connections.

Netflix subscribers have complained about slow interconnection which prevents them from enjoying a good video experience. This prompted wireless network providers to offer fast Internet access.

Verizon Communications CEO Lowell McAdam said on Monday that he expects Netflix to compensate his company for offering faster connection. Comcast and Netflix come to an agreement where Netflix pays Comcast to gain faster and more reliable access to Comcast subscribers and Verizon is expecting to have the same agreement.

McAdam told CNBC in an interview, "I'm not here to pre-announce and I'm not here to change my hand at the negotiating table, but I think there's a good opportunity here. Both [Netflix CEO] Reed [Hastings] and I have talked about it and we think it's in both of our interests."

Mark Siegel, spokesperson for AT&T, implied the same thing, too. "We're in discussions with Netflix to establish a more direct connection between our networks, similar to agreements we have with others, so that AT&T broadband customers who use Netflix can enjoy an even better video experience," he said to Reuters.

Alan Gould, an analyst at Evercore Partners, revealed that Netflix voluntarily agreed to the deal.

"This is probably a template for the deal that will get done with other broadband providers," said Gould to Reuters. "We are assuming the payments are not going to materially change the business model."

When asked for comments about negotiations with Verizon, AT&T, and other providers, Joris Evers, spokesperson for Netflix said that they are communicating with all Internet service providers all the time to ensure the best possible experience its customers can have.