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New FCC Report Says AT&T and Verizon Zero-Rating Violates Net Neutrality (theverge.com)

An anonymous reader quotes a report from The Verge: Just a week and a half before he is set to leave office, FCC Chairman Tom Wheeler has issued a new report stating that the zero-rated video services offered by ATT and Verizon may violate the FCC's Open Internet Order. Assembled by the FCC's Wireless Telecommunications Bureau, the report focuses on sponsored data programs, which allow companies to pay carriers to exempt exempt their data from customers' data caps. According to the report, many of those packages simply aren't playing fair. "While observing that ATT provided incomplete responses to staff inquires," Wheeler wrote to Senators, "the report states that the limited information available supports a conclusion that ATT offers Sponsored Data to third-party content providers at terms and conditions that are effectively less favorable than those it offers to its affiliate, DirecTV." In theory, sponsored data should be an even playing field, with providers bearing the costs and making the same charges regardless of who's footing the bill. But according to the report, ATT treats the DirectTV partnership very differently from an unaffiliated sponsored data system, giving the service a strong advantage over competitors. "ATT appears to view the network cost of Sponsored Data for DIRECTV Now as effectively de minimis," the report concludes. While ATT still bears some cost for all that free traffic, it's small enough that the carrier doesn't seem to care. The report raises similar concerns regarding Verizon's Go90 program, although it concludes Verizon's program may be less damaging. Notably, the letter does not raise the same concerns about T-Mobile's BingeOn video deal, since it "charges all edge providers the same zero rate for participating."

40 of 74 comments (clear)

  1. A little late by nehumanuscrede · · Score: 4, Insightful

    coming to this conclusion isn't it ?

    Considering the new administration may or may not wish to agree with your assessment.
    Where was this brilliant insight back when they started behavior ?

    It's lovely you all think it's a violation now, but there may be nothing you can do about it at this point.

    Good Job :|

    1. Re:A little late by Maritz · · Score: 3

      Lots of Trump fans on this site, presumably they're cool with having crappy connections to Netflix because Netflix haven't bribed their ISP sufficiently. You're headed for a brave new world where websites have to pay your ISP to access you, in addition to you paying your ISP.

      Enjoy it.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    2. Re:A little late by Anonymous Coward · · Score: 1

      But nobody has a crappy connection to netflix. https://ispspeedindex.netflix.com/country/us/

    3. Re:A little late by sabri · · Score: 1

      You're headed for a brave new world where websites have to pay your ISP to access you, in addition to you paying your ISP.

      I'd rather have that world, than a world where big government gets to dictate what I can and cannot do on my own privately owned network.

      --
      I'm not a complete idiot... Some parts are missing.
  2. Bureaucracy by JBMcB · · Score: 1, Informative

    I'm surprised they acted as fast as they did. Government bureaucracy isn't known for speed or efficiency.

    --
    My Other Computer Is A Data General Nova III.
    1. Re:Bureaucracy by Anonymous Coward · · Score: 1, Interesting

      It's because Obama's term is coming to an end. So that means, loads of bullshit and lots of monkey wrenches thrown into Trumps new selections because Clinton didn't win. People can whine over it all they want, but if Clinton had won we wouldn't even be having this discussion right now. And this entire thing would still be sitting in limbo.

      If Clinton had won, you would be fighting in Trump's revolutionary army and decrying the continued Democratic tyranny. Which ok, would amount to you trolling on the Internet some more, so no, we would be having this discussion, and you'd be doing the same things as you are now.

      Whining. Whining. Whining.

      Couldn't Trump find a non-racist attorney general candidate? Couldn't Trump find a candidate for secretary of state who knew what a war crime was? Couldn't Trump find a way to not create more conflicts of interest?

    2. Re:Bureaucracy by Mashiki · · Score: 1

      If Clinton had won, you would be fighting in Trump's revolutionary army and decrying the continued Democratic tyranny. Which ok, would amount to you trolling on the Internet some more, so no, we would be having this discussion, and you'd be doing the same things as you are now.

      Funny. Because that sure didn't happen when Obama won, but the left were right there back when Bush Jr., was elected for a second term screaming that they should violently oppose him. And gee, look again...it's the left doing exactly the same thing. But oh boy, let's look at Obama's decisions shall we? A head of the DoJ that refuses to enforce immigration law, and is now in the running to defend criminal illegals. Very progressive, much law and order!

      Couldn't Trump find a non-racist attorney general candidate? Couldn't Trump find a candidate for secretary of state who knew what a war crime was? Couldn't Trump find a way to not create more conflicts of interest?

      You mean the joke? Did you actually read/watch what he said. I guess not, that's what happens when you let the media lie to you. Yep, he's so racist he's prosecuted KKK members. Now, let's move on to that "war crime" bit. Smart move. You know why? Because if he didn't answer the way he did, he would have let every nut with an axe to grind go after the government. Starting right at the top with the previous Obama administration which decided drone strikes in sovereign countries that they weren't at war with was a good idea. And let's move onto the "conflicts of interest" you mean like donating all the money he gets from his hotel chain to the US treasury types of conflict of interest?

      Maybe you should go listen to buzzfeed a bit more. I hear they might jump on a story after 6mo of it being fished around. I suggest writing about how Obama's wife is really a man and he's the one who takes it up the ass. It was also recorded and the Saudi's have compromising evidence of it.

      --
      Om, nomnomnom...
  3. Just get the memo already: by Anonymous Coward · · Score: 4, Insightful

    Capitalism not working. Once the players are big enough to buy thugs, laws and presidents, capitalism will just devour the very substrate it thrives on.

    Capitalism as *one of the driving forces* of society is OK, mind you. As the *only* driving force (as whe've practically had for the last ~30-40 years), it's akin to cancer: ater a wild and nearly exponential growth, it will, in the end, kill its host (and thus itself).

    1. Re:Just get the memo already: by MitchDev · · Score: 1

      Sad but true.

    2. Re:Just get the memo already: by Opportunist · · Score: 3, Insightful

      We need a separation of business and state.

      But seeing how well that separation of church and state worked, I'd rather not hold my breath.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    3. Re:Just get the memo already: by kenh · · Score: 1

      But seeing how well that separation of church and state worked, I'd rather not hold my breath.

      Are you talking about the Establishment Clause of the First Amendment or the Thomas Jefferson Letter to the Danbury Bishops?

      If it's the former, I'm not aware the Federal Government established a National Religion...

      If it's the latter, Jefferson himself allowed that individual states could keep their state-sponsored religions, that the federal government would not create a national religion.

      Jefferson's letter is the only source of the phrase "separation of church and state" and as a private letter is not a binding legal document.

      --
      Ken
    4. Re:Just get the memo already: by Maritz · · Score: 1

      But seeing how entrenched the press is with the democrat party, I'd rather not hold my breath.

      The thing is, you'd say that anyway. Wouldn't you.

      --
      I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
    5. Re:Just get the memo already: by Anonymous Coward · · Score: 2, Interesting

      ...so you really are deaf, dumb, blind and stupid... the cult of christianity has been jamming it's mythology down everyone's throat since before this country existed. It's thanks to the foresight of folks like Jefferson that we aren't totally under the thumb of the christians and their version of sharia law (but only just barely).

      The reason the christians are so pissed at the muslims is that they have what the christians so desperately want, total domination in their sphere of influence. The funny thing is christians had that during the, so called, holy roman empire and then they lost it when mankind started to actually think a little. I suppose that is why the christians are so pissed at the catholics these days. I expect we would still have war and devastation without religion, but at least then it would hopefully be for something real instead of imaginary.

    6. Re:Just get the memo already: by Coren22 · · Score: 1

      Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;

      So, when did Congress pass laws establishing a national religion? What you are speaking of is that all religions, including Christianity, are allowed to freely practice their religion. Would you rather live in a country where religious are not free to practice their religion? Feel free to move to China than if that is what you want.

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
    7. Re:Just get the memo already: by Opportunist · · Score: 1

      I'm talking about reality.

      Show me one, ONE SINGLE politician in the US that doesn't somehow invoke his god in every other speech. Or in every speech when it's election time.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  4. Re:ATT & DirecTV wouldn't be a violation. by Anonymous Coward · · Score: 3, Informative

    It is monopolistic and anti-competitive, much like the rest of the broadcast industry. For some reason these jackoffs just keep coming back to building their monopoly towers, and the government lets them. They all need to be broken up into 8-10 companies apiece.

  5. No worries mate... by wbr1 · · Score: 3, Insightful

    The Trumperor will fix it with removal of regulation. Then no one will care! We will be busy getting fucked - more than we currently are. Remember kids, getting fucked is fun!

    --
    Silence is a state of mime.
    1. Re:No worries mate... by Opportunist · · Score: 4, Funny

      Remember kids, getting fucked is fun!

      Who let the priest in?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  6. Slashdot's editorial review by BenJeremy · · Score: 1

    ...is exempt exempt from checking the content of this summary.

  7. Re: ATT & DirecTV wouldn't be a violation. by Entrope · · Score: 1

    AT&T (or their subsidiary) does charge customers for DirecTV streaming, though. Do you have to pay extra to call tech support in the first place?

  8. Re:ATT & DirecTV wouldn't be a violation. by mwvdlee · · Score: 1

    Except in this case they have the power to force competitors to pay more.
    It's like them making their own tech support phoneline free while at the same time being able to charge money for using competitor's tech support phonelines.

    --
    Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
  9. Re: ATT & DirecTV wouldn't be a violation. by Entrope · · Score: 1

    Are you saying that DirecTV doesn't require a paid subscription for that? I didn't limit my statement to DirecTV Now, just DirecTV streaming in general.

  10. Re:Net neutrality will be dead in one week by Opportunist · · Score: 1

    Good news to me, too, I don't live in the US and when they try it with us we can point and say "Look what it did to the country that pretty much invented the internet!"

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  11. Re:Net neutrality will be dead in one week by The-Ixian · · Score: 1

    Thank goodness.

    I, for one, welcome our new corporate overlords.

    --
    My eyes reflect the stars and a smile lights up my face.
  12. Jobs will be lost by sbluen · · Score: 2

    It will be unfortunate it the incoming president disadvantages these third party content providers. There are jobs that will be lost if these companies go out of business or new companies are scared away, mostly middle class jobs in technology and media content creation. This will be a societal net loss, with no upside in either government income or consumer price cuts - the exact opposite of a free lunch in economics.

  13. Re:ATT & DirecTV wouldn't be a violation. by quetwo · · Score: 3

    Because AT&T has been given a defacto monopoly status (or really, participating in an oligopoly) by them being granted gobs of wireless spectrum in an exclusive manner. They aren't being told what they need to set their prices at, they are simply being told that they can't price them differently between them and their competitors. In the case of AT&T, they are not charging the customer or their subsidiary DirecTV for bandwidth, but for anybody who is using any of their competitors, they are charging the customer. This means that the customer is incentivized to use AT&T's product rather than a competitor, because while using the (T) service might cost $35 a month for unlimited streaming, it could cost in the hundreds or thousands for their competitors.

  14. The more you tighten your grip, Wheeler... by RogueWarrior65 · · Score: 1

    The more ISPs will slip through your fingers.

  15. Re:ATT & DirecTV wouldn't be a violation. by kenh · · Score: 1

    For some reason these jackoffs just keep coming back to building their monopoly towers, and the government lets them.

    Of course, you realize the irony of pointing this out on a story about the government stopping these "jackoffs", right?

    --
    Ken
  16. Does it really violate net nuetrality? by acoustix · · Score: 2

    I've always considered net neutrality to be more considered with how traffic is treated/shaped rather than how it is billed. I don't want service providers to change traffic priority that would benefit one content provider over another. But zero-rating, as far as I can tell, does not change traffic priority or speeds.

    --
    "A plan fiendishly clever in its intricacies"- Homer Simpson
    1. Re:Does it really violate net nuetrality? by nasch · · Score: 2

      It makes the net not neutral - some parties are advantaged and some disadvantaged. This doesn't have to be via traffic shaping to be a neutrality issue.

    2. Re:Does it really violate net nuetrality? by acoustix · · Score: 1

      Alright, if you don't care about billing and only how traffic is treated/shaped, how about you sign up for BiasNetISP. Where the BASIC plan is dirt cheap and affordable to all. But it restricts access to only a handful of websites: Facebook, Foxnews, Google, ESPN360, and the homepage of the church of the latter day saints. It also restricts any other Internet traffic other than web access. Shell out another $20/mo for Netflix traffic on their PREMIUM service. But hey! They pay lip-service to network neutrality and if you pay an extra $10K a year for ULTIMATE service, you get full unrestricted Internet access.

      Long story short, traffic is restricted for some of their customers. That IS affecting how traffic is being treated in a very non-neutral "We get to decide where traffic goes" sort of way. Once the gatekeepers try and control what roads you use, they can abuse that power to squeeze money out of you.

      You completed turned around my point. I don't want traffic shaped or blocked. But if someone is going to get unmetered access to a certain service, I don't really care.

      For example, I'm a DirecTV customer on Verizon. I'm aware that if I was a AT&T customer that it would get me unlimited streaming of AT&T's services including DirecTV. That's fine. It makes me jealous as a Verizon customer, but it doesn't impede my ability or AT&T's customers the ability to choose whatever video streaming service they want to use. DirecTV, Netflix, Hulu, Amazon, etc will all still work and will not be throttled.

      --
      "A plan fiendishly clever in its intricacies"- Homer Simpson
    3. Re:Does it really violate net nuetrality? by tlhIngan · · Score: 1

      I've always considered net neutrality to be more considered with how traffic is treated/shaped rather than how it is billed. I don't want service providers to change traffic priority that would benefit one content provider over another. But zero-rating, as far as I can tell, does not change traffic priority or speeds.

      But it changes behavior. If you have to choose between DirecTV and Netflix, which would you pick? Netflix would count against your bandwidth limit, so maybe you can watch 1 hour a day without going over. DirecTV is zero-rated, so you can watch it 24 hours a day and it counts as 0 bytes transferred.

      It's a realty sneaky way of getting around throttling - you implement network controls across the board (fairly), But for those providers that pay, you can zero-rate them so it doesn't count against their limit.and thus be unlimited.

      Imagine you have an Android phone and Apple cuts a deal - all iOS traffic is zero-rated. Is this not a technical violation?

    4. Re:Does it really violate net nuetrality? by MobyDisk · · Score: 1

      That's fine, so consider this: ATT & Verizon have bandwidth caps. If some sites are not subject to the cap, but others are subject to the cap, aren't they changing how traffic is treated/shaped? Once I hit my cap, the ISP is blocking some traffic, but not blocking other traffic. If there was no bandwidth cap, then there would be no need for zero-rating.

      So even if this sounds like I'm splitting a hair, in practice, it has the same effect as traffic shaping. Maybe I can't stream Netflix over my 4G connection because I would hit my cap in a day or two. But if I could stream Amazon prime, then that would make me subscribe to Amazon instead of Netflix. That's exactly the kind of thing we are trying to prevent: the ISP deciding to shift the market by changing what people access.

    5. Re:Does it really violate net nuetrality? by acoustix · · Score: 1

      Alright, if you don't care about billing and only how traffic is treated/shaped, how about you sign up for BiasNetISP. Where the BASIC plan is dirt cheap and affordable to all. But it restricts access to only a handful of websites: Facebook, Foxnews, Google, ESPN360, and the homepage of the church of the latter day saints. It also restricts any other Internet traffic other than web access. Shell out another $20/mo for Netflix traffic on their PREMIUM service. But hey! They pay lip-service to network neutrality and if you pay an extra $10K a year for ULTIMATE service, you get full unrestricted Internet access.

      Long story short, traffic is restricted for some of their customers. That IS affecting how traffic is being treated in a very non-neutral "We get to decide where traffic goes" sort of way. Once the gatekeepers try and control what roads you use, they can abuse that power to squeeze money out of you.

      You completed turned around my point. I don't want traffic shaped or blocked. But if someone is going to get unmetered access to a certain service, I don't really care.

      You're falling for the "zero rating" marketing spin.

      Imagine a health insurance plan where everybody pays $50, but fat people have to pay $10 extra.
      Reaction: WTF?!!? That's not fair! You can't do that!!!

      So they re-imagine the health insurance plan where everybody pays $60, but "health conscious" people can get a $10 discount.
      Reaction: That's cool, sure wish I went to the gym more :eats more cheetos:

      GP is saying these are the same damn thing, it's just that they have different marketing spins.
      You are eating cheetos, saying that the second plan is just fine, because it doesn't affect you.

      But their rates didn't change for AT&T and T-moble. So what's the problem?

      --
      "A plan fiendishly clever in its intricacies"- Homer Simpson
  17. Re:Racism? by Maritz · · Score: 3, Funny

    You're claiming Trump's attorney general nominee is racist, while completely blowing off Obama's repeat calls to genocide against Appalachian culture. Go fuck yourself.

    lol. I bet you believe in Pizzagate too.

    --
    I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
  18. Re:Abuse the unlimited data caps by sabri · · Score: 2, Informative

    Nope 100% wrong

    The cost of data over cable( copper or fiber) is effectively zero, the only costs are in supplying the cable in the first place ( and replacing it once every 100yrs or so, it doesn't exactly wear out). power costs are negligible

    Nope 100% wrong.

    Not only are you wrong, you are an idiot for posting this. Putting fiber in the ground is very expensive. Fixing fiber that has been broken is very expensive. Putting fiber in the ocean for transcontinental links is not just very expensive, it costs massive amounts of money.

    And now you have only the cabling. You don't have any DWDM gear, routers, switches and the associated network engineers to operate them.

    Data over cable is not zero. The only difference between wireless and wired internet access is the last mile, and the mobility aspect of it. As cellular technology evolves, it enables more and more bandwidth per user.

    --
    I'm not a complete idiot... Some parts are missing.
  19. Re:I've seen this before by Anonymous Coward · · Score: 3, Insightful

    ...Yeah dude, you're talking about the DE-regulation of the power industry. It was a clusterfuck of a bad idea. Congress agreed to deregulate and let the free market compete on price. Enron entered the industry when California tried it out. This lead to a crisis. Enron engaged in some really slimy practices like buying all the time on critical lines, cancelling deals forcing others to scramble for power which, oh look, really kinda needed to go over those critical lines.

    I generally oppose the government getting in the way of business

    Then you would generally have been in favor of all that. Because it was an attempt at removing government regulation and allowing the free market to try and lower prices. But it was abused by those in power to squeeze an extra buck and it resulted in Enron making a ton of money, a bunch of other companies losing a ton of money, high electrical bills for residences, rolling brown-outs, and the eventual collapse of a Enron once it became such a problem it got political.

    Jesus Christ dude, if you know NOTHING of the Network Neutrality debate, this is the one big bit you need to take away from it: The Internet has historically operated on a principle of neutrality. The debate is how to keep it neutral now that the providers have consolidate to a small handful and are trying to get rid of it. Pointing at the attempt to deregulate the power industry is NOT a valid example for bitching about government interference.

  20. Re:Abuse the unlimited data caps by Striek · · Score: 1

    Assume you're right (you're not, but humour me...) - data, once the cabling is laid, costs nothing to transmit.

    You happily saturate every link you have, and every upstream link as well, because of course, it's free, right?

    Now I come along and offer to pay whoever gave you the link some amount of money - let's say $1000/mo. So they give me the link instead of you.

    Now, if you want to use that link again, you'll have to beat my $1000/mo. So I guess it's no longer free to you - it will cost you at least as much as I am willing to pay for it.

    Idiot.

    --
    "Government is like fire; a handy servant, but a dangerous master." -- George Washington
  21. Re:Racism? by Mashiki · · Score: 1

    lol. I bet you believe in Pizzagate too.

    Funny enough if we apply this standard of evidence(that buzzfeed used), Pizzagate goes from the realm of possibility into the realm of probability.

    --
    Om, nomnomnom...
  22. Re:ATT & DirecTV wouldn't be a violation. by Coren22 · · Score: 1

    A strongly worded letter is far away from stopping anything.

    --
    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?