Verizon Communications CEO Lowell McAdam told CNBC on Monday that he expects to reach an agreement with Netflix on bandwidth loads from the online streaming video service, adding that the two companies have been talking for the past year.
“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,” McAdam said during an interview with CNBC on “Squawk on the Street.”
“Both [Netflix CEO] Reed [Hastings] and I have talked about it and we think it’s in both of our interests.”
The deal requires Netflix to pay Comcast for direct access, a first for the cable-broadband industry and an agreement that could act as a precedent for cable providers such as Verizon and AT&T. Terms of the deal were not disclosed.
(Read more: Comcast customers to see improved Netflix speeds)
Last week, Verizon Communications completed its $130 billion agreement to buy Vodafone’s 45-percent stake in Verizon Wireless. The deal should boost margins this year and help with plans to create a new product development unit, Verizon said before markets opened Monday.
—By CNBC’s Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from “Squawk on the Street.” Reuters contributed to this report. Reuters contributed to this report.