AT&T, Verizon Laugh Off the FCC's Net Neutrality Concerns AT&T and Verizon are laughing off the FCC's claims that the companies are violating net neutrality by giving their own content special, cap-exempt status (aka "zero rating"). Last week the FCC sent letters to both companies stating this preferential treatment of their own content was anti-competitive and violated net neutrality. AT&T exempts its DirecTV Now streaming service from its wireless usage caps, while Verizon does the same thing for its Go90 streaming platform. Competing services still count against user usage allotments.

some companies cap-exempt status automatically puts other companies at a market disadvantage, twisting and distorting the open market. Net neutrality advocates have long argued that givingcompanies cap-exempt status automatically puts other companies at a market disadvantage, twisting and distorting the open market. In its letter, the FCC said it had "reached the preliminary conclusion that (zero rating) practices inhibit competition, harms consumers, and interferes with the 'virtuous cycle' needed to assure the continuing benefits of the Open Internet." AT&T and Verizon's response? The legal equivalent of laughter. In responding letters sent by both companies, AT&T and Verizon insist they're doing nothing wrong, stating that competing companies can get these special privileges too -- provided they're willing to pay a premium for it. The companies' letters also make it abundantly clear they realize the current FCC is a lame duck that won't actually be able to follow through on any enforcement of the violations. “There is no evidence that FreeBee – or Go90’s participation in FreeBee – has injured or could harm consumers or competition," Verizon said in its letter. "In fact, FreeBee data provides tangible benefits to consumers by increasing the amount of what they can do and watch online, at no cost to them." Verizon also questioned the timing of the FCC's inquiry, which comes too late to be of effective benefit to consumers. “Only now, almost a year after we deployed this innovative offering and during a time of transition to a new Administration, you write to express concern with FreeBee, and specifically with the participation of Go90 – Verizon’s mobile-first, over-the-top video service,” Verizon senior VP Kathleen Grillo said in the letter. AT&T similarly made it clear they believe that the incoming Trump administration, which has repeatedly stated it hopes to gut both net neutrality and the FCC as consumer watchdog, won't overturn any enforcement action that is pursued. "Any doubts on that score were put to rest when two FCC Commissioners, both of whom will remain in office after the imminent change of administration, criticized this investigation and warned the Bureau against unlawfully usurping core policymaking powers that only the Commission may exercise," AT&T wrote. "Those Commissioners also observed that whatever judgment the Bureau purports to pass on this program before January 20 will very likely be reversed shortly thereafter." The FCC spent much of the year ignoring the potential pitfalls of zero rating, and the timing is certainly strange for an agency that's about to have the rug pulled out from under it. And while net neutrality advocates might appreciate the FCC finally realizing the anti-competitive implications of zero rating, the agency's actions come too little, too late to be of any concrete benefit to consumers and smaller competitors. The FCC spent much of the year ignoring the potential pitfalls of zero rating, and the timing is certainly strange for an agency that's about to have the rug pulled out from under it. And while net neutrality advocates might appreciate the FCC finally realizing the anti-competitive implications of zero rating, the agency's actions come too little, too late to be of any concrete benefit to consumers and smaller competitors.







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Most recommended from 56 comments

thxultra

join:2015-04-14

Aurora, IL 20 recommendations thxultra Member They know the Trump Administraton is going to kill Net Neutrality Of course they are laughing they know the Trump pro business anti consumer administration is going to kill net neutrality. Things are just going to get worse the next few years. I don't think there should be any usage caps on home internet service yet they get away with that already. grayem

join:2000-09-22

Saint Louis, MO 10 recommendations grayem Member Do you remember AOL? I do, it was a the early days of the internet, 1995 I think. They had this very limited approach to the web that was easily gotten around using Netscape instead of the AOL system once you dialed in. Imagine an internet with paywalls to get past ATT, Verizon or Charter owned content. That is what people are worried about. It could turn into internet channel packages instead of the Disney channel and Hgtv that we end up paying $150 to access. Net neutrality was set up to prevent that from happening.