Net Neutrality Policy Likely to Permit Sponsored Data Programs
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When the new rules for net neutrality arrive, rest assured the big wireless carriers will be unhappy. But they can take solace in at least one victory. “Zero-rating” programs, in which operators turn their pipes into advertising and promotional channels, will likely remain intact in the broadband regulation — and might even flourish.
Last week, Tom Wheeler, chairman of the Federal Communications Commission (FCC), laid out most of the coming internet rules with clarity. Yet he was less clear on another area: “zero-rating.” It’s a practice that is becoming more common. Carriers, often in partnership with marketers, subsidize the data used by consumers for particular mobile apps or websites.
In January 2014, AT&T launched Sponsored Data, a service that allows advertisers to sponsor mobile data for its subscribers. All other major national carriers are considering similar products, according to multiple executives familiar with the industry. The two smaller players, T-Mobile and Sprint, have deployed zero-rating in recent phone plan promotions.
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