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FCC writes AT&T with 'serious concerns' about zero-rating plans

Published 11/10/2016, 03:58 PM
FCC writes AT&T with 'serious concerns' about zero-rating plans
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  • After some high-profile hand-wringing about whether AT&T's plan to give its customers data-cap exemptions for impending streaming service DirecTV Now violated net neutrality practices, the FCC has weighed in further.
  • The agency wrote AT&T (T -2.3%) to express "serious concerns" about the practice, known as "zero rating": It "“may obstruct competition and harm consumers by constraining their ability to access existing and future mobile video services not affiliated with AT&T."
  • AT&T actually began zero-rating with the DirecTV video app in September, but the wide launch of DirecTV Now -- promising more than 100 channels for a base $35/month -- will make stark the differences in data usage between those who are AT&T wireless customers, and those who aren't.
  • AT&T's Robert Quinn responds: “We welcome any video provider that wishes to sponsor its content in the same ‘data free’ way ... We’ll do so on equal terms at our lowest wholesale rates.”
  • Previously: AT&T sets streaming TV service price at $35/month (Oct. 25 2016)

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