T-Mobile, which offers data-free music and video streaming for select services, tells The Hillthat its program “encourages competition, and we believe it is absolutely in line with net neutrality rules”. While the practice offers some benefits to customers, critics say it violates the agency’s Net neutrality principles, which requires all services on the Internet be treated the same. While making it clear the companies are not being “investigated” formally, FCC boss Tom Wheeler today stated the agency has sent letters to T-Mobile, Comcast and Verizon regarding all three companies’ recent announcements that they’d be pursuing zero rating, albeit in notably different ways. The reports include detailed information for the public on promotional discounts, surcharges and fees, and data caps placed on users. “We all know that smaller providers never had the imaginary market power envisioned by the Commission, and they shouldn’t have to comply now or in the future with burdensome requirements that divert limited resources from broadband deployment and provide no real value to consumers”, he said in a statement.
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Comcast is rolling out its own live streaming TV service in six states called “Stream TV” that would not count usage against data caps if using Comcast services.
In the FCC’s letter to AT&T, it said that it wants to get all the facts from the companies themselves in order to understand “how these services relate to the Commission’s goal of maintaining a free and open internet”. “It is a cable service that only works in the customer’s home”, said Comcast spokeswoman Sena Fitzmaurice. “This is to help us stay informed as to what the practices are as we said we would do”.
“We are reviewing the letter and will respond as appropriate”.
The discussions come amid concerns that carriers are treating some data traffic differently, which may conflict with the fairness policies central to net neutrality rules.
Energy and Commerce Committee Chairman Fred Upton (R-MI) was joined by House Small Business Committee Chairman Steve Chabot (R-OH) on Wednesday in expressing disappointment over a Federal Communications Commission (FCC) decision that fails to provide permanent protection for small businesses.
T-Mobile said it looked forward to giving the FCC details about Binge On.
AT&T offers a sponsored data option allowing companies to pay customers’ wireless data charges while watching videos or viewing content on their phones and tablets. Last year, Sen. Al Franken, a Minnesota Democrat, raised concerns that Internet service providers could create fast lanes for deep-pocketed companies.
For those unfamiliar with net neutrality, the idea is that bandwidth should be neutral.
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“We remain committed to innovation without permission and hope the FCC is too”, AT&T spokesman Michael Balmoris said.
