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Why Free Services From Telecoms Can Be a Problem On the Internet
HughPickens.com writes: T-Mobile said last week that it would let customers watch as many movies as they wanted on services like Netflix and HBO as well as all other kinds of video, without having it count against their monthly data plans. But the NYT editorializes that there are real concerns about whether such promotions could give telecommunications companies the ability to influence what services people use on the Internet, benefiting some businesses and hurting others. Earlier this year, the FCC adopted net neutrality rules to make sure that companies like T-Mobile, Verizon and Comcast did not seek to push users toward some types of Internet services or content — like video — and not others. The rules, which telecom companies are trying to overturn in court, forbid phone and cable companies to accept money from Internet businesses like Amazon to deliver their videos to customers ahead of data from other companies. The rules, however, do not explicitly prevent telecom companies from coming up with "zero rating" plans like the one T-Mobile announced that use them treat, or rate, some content as free.
"Everybody likes free stuff, but the problem with such plans is that they allow phone and cable companies to steer their users to certain types of content. As a result, customers are less likely to visit websites that are not part of the free package." T-Mobile has said that its zero-rating plan, called Binge On, is good for consumers and for Internet businesses because it does not charge companies to be part of its free service. "Binge On is certainly better than plans in which websites pay telecom companies to be included," concludes The Times. "But it is not yet clear whether these free plans will inappropriately distort how consumers use the Internet."
"Everybody likes free stuff, but the problem with such plans is that they allow phone and cable companies to steer their users to certain types of content. As a result, customers are less likely to visit websites that are not part of the free package." T-Mobile has said that its zero-rating plan, called Binge On, is good for consumers and for Internet businesses because it does not charge companies to be part of its free service. "Binge On is certainly better than plans in which websites pay telecom companies to be included," concludes The Times. "But it is not yet clear whether these free plans will inappropriately distort how consumers use the Internet."
In all honestly this service seems completely reasonable, delivering data through this service will cost tmobile less (since it will be originating inside their network and they have complete control over the colocation and whatnot) so why not let them offer their service without billing you. In my opinion it is no different than the video-over-ip that is offered by time warner or verizon, except instead of calling it a separate service they are just not billing you for it.
While they are at it they should go and bring back usenet and let you use their usenet mirrors for free too
To me, it means I will use my Netflix in an airport, when I never would have before. That's a change in usage patterns, it influences my choice of content providers. If another major player like HBO-Go were not included and I decided I would only keep one service: Netflix or HBO-Go, the one that is included on my cellphone plan for free has a huge competitive advantage.
Now - have you ever heard of MangoFlix? No, you haven't, because all these entrenched services have locked up deals with content providers, and now connectivity providers, making it impossibly expensive to start up a competitive service. You know, like a competitive service that actually streams a decent collection of Movies, and not just stale TV series and in-house produced content.