American telecom carrier AT&T has clinched a deal from video streaming service Netflix to ensure delivery of Netflix content to Internet users.
Earlier, Netflix announced similar agreements with Verizon and Comcast.
Netflix decision to pay the U.S. broadband provider is a dramatic turnaround in the case of Netflix as it has been waging a public campaign against such fees.
Earlier, Netflix approached the telecom regulator Federal Communications Commission to review the market.
The interconnection agreement signed in May between AT&T and Netflix will ensure that Netflix users will get better video content.
Financial details were not disclosed.
This also means that small rivals of Netflix may be at a disadvantage.
Both the companies are now working to build out new network connections for Netflix content to be delivered directly to AT&T’s servers “to improve the viewing experience for our mutual subscribers, Reuters reported.
This marks the third such agreement Netflix struck with major U.S. Internet service providers in recent months after it revealed similar traffic exchange agreements with Verizon Communications in April and Comcast in February.
Consumers have also complained to the FCC about an ongoing spat between Netflix and major Internet providers, saying they are experiencing slow download speeds for Netflix video.
The FCC last month moved to privately review the current deals, though did not indicate specific plans to regulate that part of the market.