Jon Brodkin, Ars Technica:
With Sponsored Data, AT&T charges other companies for the right to bypass customers’ data caps on AT&T’s wireless network. At the time same, AT&T lets its subsidiary DirecTV stream on the mobile network without counting against data caps. DirecTV technically pays AT&T for the privilege, but the money is just shifting hands from one part of AT&T to another. AT&T is using DirecTV’s data cap exemption to market the new DirecTV Now streaming service.
Separately, Wilkins sent a letter to Verizon yesterday about the company’s FreeBee Data 360 program, which also charges online service providers for data cap exemptions. The FCC’s wireless bureau “believes that the FreeBee Data 360 offering to edge providers unaffiliated with Verizon, combined with Verizon’s current practice of zero-rating its affiliated edge services for Verizon subscribers, has the potential to hinder competition and harm consumers.”
These programs — and others like them — effectively create a tiered system that benefits only the providers, not consumers. This is why it’s so important that there’s a strong FCC that rigorously enforces net neutrality regulations.