"FCC: AT&T and Verizon's free data programs violate net neutrality rules"
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CNET News Video
CNET News Video
FCC: AT&T and Verizon's free data programs violate net neutrality rules
AT&T and Verizon are in hot water with the FCC over free data services.
The FCC issued a report stating that Verizon's freebie data 360 offer, and AT&T's DIRECTV Now service, both violate neutrality rules.
The plans both fall under what's called zero-rating services, which means an Internet service provider doesn't count a particular application or data use against a customer's monthly cap.
The read on the SPC frowns upon that is because it could give wireless and broadband providers an unfair advantage over competition.
Here's an example.
A company like AT&T offering free data services for Direct TV, which is an AT&T subsidiary Could harm other streaming services competing for customer subscriptions on AT&Ts network.
Both AT&T and Verizon insist their programs are open to any video companies who wanna pay for customer data.
The FCC on the other hand says since both companies own their networks, provide the streaming services, and employ aggressive pricing for those services, it would be a cost advantage over other companies that couldn't compete.
Whether or not there will be any action beyond the FCC's report is unlikely though, since Chairman Tom Wheeler will be stepping down once President elect Donald Trump is sworn in, and Wheeler's likely successor Successor doesn't appear to agree much with the FCC's more recent rulings and reports.
And one more thing, if you're one of those people clinging to a legacy unlimited data subscription on either AT&T or Verizon, both companies recently announced plans to crack down on their heaviest data users.
For more information check out cnet.com.
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