FCC Warns AT&T, Verizon That Zero Rating is Anti-Competitive Despite the current FCC being halfway out the door, it continues to pressure companies like AT&T and Verizon on their use of zero rating (exemption from usage caps) to give their own content a distinct market advantage. In letters sent to both AT&T (pdf) and Verizon (pdf), the regulator said that it believes such behavior unfairly tilts the playing filed in favor of incumbent providers, given that competitors face usage penalties that these companies' content and services do not.

The FCC had already sent AT&T a letter expressing "serious concerns" regarding its zero rating of AT&T's new DirecTV Now streaming video service, and doesn't appear swayed by AT&T's explanations of the effort. The FCC said that AT&T's response to the agency's original inquiry "tends to confirm our initial view that the Sponsored Data program strongly favors AT&T's own video offerings while unreasonably discriminating against unaffiliated edge providers and limiting their ability to offer competing video services to AT&T's broadband subscribers on a level playing field." The agency also stated that it "reached the preliminary conclusion that (the company's) practices inhibit competition, harm consumers, and interfere with the 'virtuous cycle' needed to assure the continuing benefits of the Open Internet." The FCC expressed similar concerns with Verizon regarding the company's "Free Bee" sponsored data plan, which lets companies enjoy the same cap-exempt status as Verizon's own Go90 streaming content -- for a notable fee. The FCC notes that Verizon is "acting in ways that may harm the open Internet, such as preferring [its] own or affiliated content [and] demanding fees from edge providers." The FCC's original rules don't specifically ban zero rating, but do give the agency the ability to take a look at the practices on a "cases by case basis" to determine if there is competitive harm. In this case, the FCC clearly now believes both companies are hurting competition via the use of zero rating. The problem here is that the FCC's behaviors on zero rating come too little too late. The agency will be overhauled by the incoming Trump administration, and Trump's advisors on guiding telecom policy and picking a new FCC boss are closely allied with the industry. As such they have made it abundantly clear they hope to both dismantle net neutrality rules completely -- and defang and defund the FCC as a consumer broadband watchdog. Current FCC Commissioner Ajit Pai, among several in the running for top FCC spot under Trump, made it similarly clear any zero rating enforcement wouldn't stand under a new administration. "This end-run around Congress’s clear instruction is sad—and pointless," proclaimed Pai in a statement (pdf). "For any unilateral action taken by the Wireless Telecommunications Bureau at the Chairman’s direction in the next 49 days can quickly be undone by that same bureau after January 20, 2017." Even though it's not clear that the current FCC will actually be able to hold Verizon and AT&T's feet to the fire on the subject, the letters urge both companies to respond to the FCC by December 15. Even though it's not clear that the current FCC will actually be able to hold Verizon and AT&T's feet to the fire on the subject, the letters urge both companies to respond to the FCC by December 15.







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Most recommended from 57 comments

desarollo

join:2011-10-01

Monroe, MI 14 recommendations desarollo Member Network Neutrality Won't Be a Problem Until... ...a network starts demanding money from web sites deemed friendly to conservatives. Then, it will be a problem.



Until that time, continue the fleecing.

Mike

Mod

join:2000-09-17

Pittsburgh, PA 6 recommendations Mike Mod sometimes you just have to do the right thing

Anon64076

@suddenlink.net 4 recommendations Anon64076 Anon I think Wheeler should give the admination a parting gift. And make it the all caps and zero rating is banned. Then in would be hard for the new fcc or the administration to undo it. Cause I think to many people would complain and maybe riot and they would be afraid to go against what their constitutes want. Would be afraid of the later backlash at the voting box and all.

Also what the backlash and riots will do the harm to them back home. So Wheeler how about banning caps and zero rating on your way out for the people.

And what it will cost the administration and fcc to walk it back would be the blame of the administration and the new fcc and not you. And would really give them a black eye from the people no matter who is appointed.



P.S. Wheeler you tried to do a great job for the people and to that I raise my glass,you will go down in history as the greatest fcc chairman there ever was.

Hate to see you go. Mikeysama

join:2007-08-14

Lady Lake, FL 3 recommendations Mikeysama Member Here we go Between the impending erosion of net neutrality, and the spying bills being pushed in Canada and the UK, we are rapidly entering an era of mandatory VPNs. Not that that helps mobile users.

atuarre

Here come the drums

Premium Member

join:2004-02-14

EC/SETX SWLA 3 recommendations atuarre Premium Member RE All they can do is warn because under the incoming administration, the FCC will be neutered and will be powerless.

TestBoy

Premium Member

join:2009-10-13

Irmo, SC 2 recommendations TestBoy Premium Member Piece of garbage Ajit Pai Nobody is talking about this obvious shill.



So Trump wanted to 'drain the swamp' yet he is in the running.

Amazing.



There is no FCC commissioner so openly corrupt as Ajit Pai.