The FCC sent strongly-worded letters to
Zero-rating has long been a point of friction between the Federal Communications Commission (FCC) and top Internet providers. Zero-rating has tended to be a hit with consumers, who are eager to consumer video on the go and avoid high data charges in the process. But the practice--where Internet providers don't charge consumers for data costs on certain applications--can also pose a risk to net neutrality by advantaging some businesses and not others.
In the case of AT&T, it's the company's sponsored data and DirecTV offerings that have raised the FCC's hackles. Right now, if you're an AT&T customer you can watch AT&T without it counting toward your monthly data cap. If, however, you want to watch Netflix or another video service, you will run up against data charges. The FCC argues that by forgiving data charges on its own video service, AT&T could be giving DirecTV an unfair advantage. Under its current structure, AT&T offers a cheaper data deal to DirecTV, its own video service, than it does to outside video providers.
In the letter to AT&T, the FCC said that the program "strongly favors AT&T's own video offerings while unreasonably discriminating against unaffiliated edge providers." It goes on to say that the practices could ultimately "inhibit competition" and "harm consumers"
AT&T did not immediately respond to FORBES' request for comment. It did, however, give the following comment to Engadget: "These are incredibly popular free services available to millions of customers. Once again, we will provide the FCC with additional information on why the government should not take away a service that saves consumers money."
In the case of Verizon, it's the FreeBee Data 360 and Go90 video services that are ringing the FCC's alarm bells. Similar to AT&T's system, Verizon lets consumers watch video from its own Go90 video service without it counting toward their monthly data. "We will review and respond to the inquiry as requested," Verizon spokesman Rich Young said "In the meantime, we remain quite confident that our practices are good for consumers, non-discriminatory and are consistent with current rules."
The two letters are perhaps the strongest stance the FCC has taken on zero-rating. Jon Wilkins, chief of the Wireless Telecommunications Bureau at the FCC, has asked AT&T and Verizon to respond by December 15. However, it's unlikely that any serious action (or repercussions for AT&T and Verizon) would happen before Donald Trump is inaugurated in January. And under Trump, Americans can expect a starkly different stance on net neutrality. Trump has appointed two anti-net neutrality advocates to oversee the FCC transition, and we can expect a similar position from any permanent FCC officials he appoints under his administration.
Read the letters to AT&T and Verizon, which were obtained by Mashable, in full below.
FCC zero rating letter to AT&T by mashablescribd on Scribd
FCC zero rating letter to Verizon by mashablescribd on Scribd
