Verizon’s FIOS Netflix speed tanks as finger-pointing by both companies continues

Verizon (S VZ) FIOS subscribers continue to see buffering Netflix streams, and the situation is apparently getting worse: Netflix’s (S NFLX) latest ISP speed index saw the average speed of Netflix streams watched by FIOS subscribers decline to 1.58 MBPS in June, down from 1.9 MBPS in May, and well below average speeds seen on other ISPs. The average speed of Netflix streams requested by Cablevision (S CVC) customers was 3.1MBPS in June, and Comcast (S CMCSK) customers got their Netflix fare with an average of 2.61 MBPS.
netflix isp speed index june 2014
Verizon actually used to fare a lot better in Netflix’s ISP speed index. Last fall, Netflix streams to FIOS customers were still averaging up to 2.22 MBPS, but speeds have been in freefall since January.
Both companies continue to blame each other for the reason behind the slow-down, with Verizon public policy VP David Young once again arguing last week that Netflix was deliberately choosing a transit route without enough capacity to serve FIOS customers.
Netflix executives have been countering this by saying that Verizon has chosen to limit interconnection capacity in order to get Netflix to pay for peering. Both parties reached a commercial agreement, which includes such payments, in April — but the results of that agreement have yet to be felt by Verizon customers.