AT&T Introduces "Sponsored Data" Allowing Services to Bypass 4G Data Caps

sirhan writes with news that AT&T has announced a program that allows companies to pay for their services to bypass mobile data caps. "With the new Sponsored Data service, data charges resulting from eligible uses will be billed directly to the sponsoring company ... Customers will see the service offered as AT&T Sponsored Data, and the usage will appear on their monthly invoice as Sponsored Data. Sponsored Data will be delivered at the same speed and performance as any non-Sponsored Data content." The Verge comments: "If YouTube doesn't hit your data cap but Vimeo does, most people are going to watch YouTube. If Facebook feels threatened by Snapchat and launches Poke with free data, maybe it doesn't get completely ignored and fail. If Apple Maps launched with free data for navigation, maybe we'd all be driving off bridges instead of downloading Google Maps for iOS." Or, think of distributed services: Mediagoblin vs Flickr, pump.io vs twitter, ownCloud vs Google Apps. This is probably a sign that data caps are here to stay, at least for AT&T subscribers (and if it's successful...).

Comments

Double Dipping

[DigiWood]

This is called "double dipping". These providers are not supposed to be able to do this according to the common carrier rules. The subscriber pays and they get their allotment. Any other payments to "overlook" a data cap that are made by a third party violates the common carrier rules because it creates an unfair advantage for large companies. They can afford to pay a fee to basically make the little guy penalized (having the little guys data count against the subscriber). If the subscribers complained to the FCC this pilot project would be stopped dead in its tracks.

I fear though that the only people that would care are the technically minded subscribers. The others would be snowed by some marketing speak.

Re:This is bad

[Raumkraut]

IF you start making it to where a company has to pay for the bandwidth of its users, then you raise the barrier of entry. Not good for innovation.

Internet companies already pay for the bandwidth of their users - all incoming and outgoing traffic to a data centre is bandwidth which the data centre must pay their internet provider to carry.

The future of the internet

[TWiTfan]

With the end of net neutrality, it was really only a matter of time before we started to see the internet turn into a place where the big companies control the data, and the little guys and startups get shut out. Free market my ass.

Re:low cunning, not clever

[DigitalSorceress]

Exactly - it's reverse net-neutrality.

I wonder when wired broadband service providers will do that - as it is, I'm pretty sure Comcast/Xfinity is doing sort of the same thing - I can watch as many things "on demand" on my cable box as I want without touching my bandwidth cap, but if I stream the same movies/shows from Netflix/Hulu, etc... then it does count against my cap (which I will just preach to choir and say "what part of unlimited don't you understand")