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FCC Calls Out AT&T, Verizon For 'Zero Rating' Their Own Video Apps (zdnet.com)

Posted by msmash on from the taking-a-stand dept.

U.S. regulators are calling out AT&T and Verizon for exempting their own video apps from data caps on customers' smartphones. The FCC has sent letters to the country's biggest wireless carriers saying the way they handle the practice, known as "zero rating," can hurt competition and consumers. From a report on ZDNet: AT&T launched DirecTV Now earlier this week. AT&T Mobility customers can stream video data over LTE without impacting their data allowance. Verizon offers something similar with its go90 service. AT&T and Verizon don't see any wrongdoing. In a statement Friday, AT&T said exempting services like DirecTV Now from data caps saves customers money. Verizon said its practices are good for consumers and comply with regulations. "We will provide the FCC with additional information on why the government should not take away a service that saves consumers money," AT&T wrote in a statement Friday. The FCC hasn't released any official ruling on "zero rating," just guidance. It said on Thursday a similar letter was sent to AT&T in November, but the FCC didn't like AT&T's original response.

5 of 56 comments (clear)

  1. It's ok by cdrudge · · Score: 4, Insightful

    Just wait about a month and a half AT&T and Verizon. Everything will be a-ok.

    1. Re:It's ok by DickBreath · · Score: 3, Insightful

      Dear Internet Service Providers:

      If we didn't have data caps, then we wouldn't need data cap exemptions or Zero Rating, or whatever marketing euphemism you want to call it.

      --

      I'll see your senator, and I'll raise you two judges.
  2. Double the price and give them 10% off by Anonymous Coward · · Score: 3, Insightful

    "the government should not take away a service that saves consumers money"

    But the only reason it costs money in the first place is because you decided it does.

    1. Re:Double the price and give them 10% off by drakaan · · Score: 4, Insightful

      How about zero-rating *all* streaming data. That would save customers even *more* money, right?

      --
      "Murphy was an optimist" - O'Toole's commentary on Murphy's Law
  3. They're lying. by msauve · · Score: 3, Insightful

    "AT&T said exempting services like DirecTV Now from data caps saves customers money. "

    No, it doesn't. Wireless network costs are shifted onto consumers who don't buy their streaming services. If all the costs of streaming bandwidth are included in the price of the streaming service, then reduce the cost of that service and let the consumers pay for the bandwidth directly, just like customers who use competitive streaming services.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law