AT&T and Verizon both have a free data service to offer to their consumers, but the Federal Communications Commission does not seem to be happy with the offers after sending a letter to the telecommunications giant on Thursday. The FCC sent letters both to AT&T and Verizon, insisting that the free data plans sponsored by the companies and currently being offered to wireless consumers violates net neutrality. Both giant telecom companies have just come up with similar offer to customers, The Verge reports.
The said sponsored data plans by AT&T and Verizon were also known as "zero rating," gives their consumers the capacity to select certain services they can use without counting against their data plans. The news site reports that FCC explains such scheme lets the two giant telecom companies favor their own content over what their competitors are offering today.
According to CNET, this "zero rating" or free data offers by both companies may cause harm to their customers instead of letting them save their data allocation. In the letter sent to AT&T and Verizon, FCC wireless bureau chief Jon Wilkins said that the scheme inhibits competition, harm consumers and interfere with the continuing benefits of the Open Internet.
AT&T has given access to their wireless customers to freely stream their DirecTV video service over the company's Wi-Fi network. Since September, wireless customers were able to stream videos without counting against their data plan. Another streaming service plan was offered by the company for only $35 a month.
Verizon, who is up for the competition, has introduced a similar offer, Go90. It lets Verizon customers stream the video service without using their data plan. Both offers, according to the news site, charges the data usage over the video providers instead of the customer's data plans. Both companies have explained that the zero rating offers is also open to other video providers willing to shoulder the cost of their customers' data usage.
The FCC has demanded the telecom giants to respond to their letter by the 15th of December. AT&T has already responded to the letter, insisting that their free data services benefit the customers. The company also said that they will provide further explanation to the FCC on why these schemes should be favored by the government. Meanwhile, Verizon has not yet provided an explanation but also explained that the zero rating offers are for their customer's welfare.
This article is copyrighted by Travelers Today, the travel news leader
