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Verizon's FIOS explicitly forbids this in section 4.3:

3. Restrictions on Use. The Service is a consumer grade service and is not designed for or intended to be used for any commercial purpose. Except as otherwise set forth in this Agreement, you may not resell, re-provision or rent the Service, (either for a fee or without charge) or allow third parties to use the Service via wired, wireless or other means. For example, you may not provide Internet access to third parties through a wired or wireless connection or use the Service to facilitate public Internet access (such as through a Wi-Fi hotspot), use it for high volume purposes, or engage in similar activities that constitute such use (commercial or non-commercial). If you subscribe to a Broadband Service, you may connect multiple computers/devices within a single home to your modem and/or router to access the Service through a single Verizon-issued IP address, and if available through the Service, you may permit guests to access the Internet through your Service’s Wi-Fi capabilities. You also may not exceed the bandwidth usage limitations that Verizon may establish from time to time for the Service, or use the Service to host any type of server. Violation of this Section may result in bandwidth restrictions on your Service or suspension or termination of your Service.

Source: http://www.verizon.com/about/sites/default/files/Verizon-Onl...

Let me first say ... IANAL. That being said this (like most legal language) is a broad as possible and by design. Having spoken with Verizon (Wholesale, Wireless and Edgecast teams) there seems to be a consensus that models that limit their (the telecoms) transit costs are encouraged and there's a number[1][2] of commercial examples where thats the case. Indeed - their own CDN offerings don't (yet) have the economics (today) to support more distributed caches, so something like this which is lightweight and requires no DNS/infrastructure changes is interesting. A place where this is getting a lot of discussion is where we'd least expect it: on the LTE networks. Since there isn't yet[3] a solution for mobile peering there's a lot of discussion around solutions to run low cost, light weight caches _inside_ the Radio Area network.

[1] Xbox One | https://www.nanog.org/sites/default/files/wed.general.palmer... [2] Spotify | https://community.spotify.com/t5/Desktop-Linux-Windows-Web-P... [3] http://datacenterfrontier.com/vapor-io-teams-with-tower-tita...

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