Today’s decision by Federal Communications Commission (FCC) on allowing free data plans by wireless and cable giants in the US is likely to pave way for new guidelines for net neutrality.
FCC chairman Ajit Pai, who did not support America’s current net neutrality regulation, said the U.S. telecom regulator is ending the investigation into wireless carriers’ free-data offerings because free-data plans are popular among consumers, particularly low-income Americans, and enhanced competition in the wireless marketplace.
“Going forward, the Federal Communications Commission will not focus on denying Americans free data. Instead, we will concentrate on expanding broadband deployment and encouraging innovative service offerings,” said Ajit Pai.
The decision will be a big relief for AT&T, Verizon Communications, Comcast and T-Mobile because they faced inquiries into sponsored data programs and TV services.
Under the Obama administration, the Federal Communications Commission had sent letters raising concerns about whether some data practices by AT&T and Verizon violated net neutrality rules. The FCC had also sent letters to Comcast about its Stream TV service and to T-Mobile about its Binge On service in 2015.
Reuters reports said millions of mobile phone users benefit from free data video services but critics warn that the practice may prod users into avoiding competitors’ services. Net neutrality rules imposed by the FCC in 2015 – under the President Obama administration — require broadband providers to treat all data equally and bar service providers from slowing consumer access to web content.
Tom Wheeler, who stepped down as FCC chairman in January, said last month that its investigation found some free data practices were abusive and anticompetitive.
Sponsored or zero-rated free data programs allow mobile phone users free data if they use certain video services. AT&T phone subscribers can watch DirecTV, which is owned by the company, on their phones without incurring data charges. Verizon offers mobile phone subscribers some sponsored go90 video content that does not count against data caps.
In a January 11 report, the FCC’s wireless bureau said Binge On did not violate net neutrality rules, but it found concerns with AT&T and Verizon’s data programs.
Ajit Pai voted against the net neutrality rules and said last month he thought the regulation’s “days are numbered.”
“It is clear that net neutrality is public enemy number one for Chairman Ajit Pai,” Democratic U.S. Senator Edward Markey said on Friday. “He is starting his campaign by protecting harmful zero-rating plans.”
Verizon spokesman Rich Young said the company has always believed its free data programs benefit customers.
Joan Marsh, AT&T’s senior vice president, said the decision was a win for the millions of consumers who are reaping the benefits of services made available through free data programs.
Comcast declined to comment, but has said its Stream TV is an IP-based cable service that is not covered by net neutrality rules.
