dslreports logo
 story category
Consumer Groups Urge FCC to Stop 'Zero Rating'

A coalition of consumer groups including Center for Media Justice, the Open Technology Institute, Free Press have sent a letter to the FCC urging the agency to crack down on "zero rating" -- or the practice of exempting some content from carrier usage caps. While T-Mobile's practice of exempting some video services from usage caps (aka "Binge On") is controversial, even more controversial has been Verizon and Comcast's decision to exempt their own content from usage caps.

Click for full size
So far, the FCC has only responded by insisting it's conducting an "information gathering exercise" via letters to most of the afore-mentioned companies. The FCC chose not to specifically ban zero rating, instead saying it would be addressed on a case-by-case basis. But so far the FCC has seen no "case" that it has been willing to act upon.

But the coalition of consumer groups say that regardless of the FCC's glacial response to the phenomenon, the practice of zero rating works to "distort competition, thwart innovation, threaten free speech, and restrict consumer choice—all harms the rules were meant to prevent.”

The argument is that if you're giving your own (or a partner's) content preferential treatment, you're by nature putting somebody at a disadvantage. This creates a scenario whereby smaller independents, startups, educational outfits and others find their traffic won't be getting the same attention.

"These plans distort user choice by pushing people toward websites with deep pockets and away from smaller applications who can’t afford the toll," the groups write in their letter. "This includes start­ups, small players, and non­commercial providers. In this way, sponsored data plans create the same kinds of harms to innovation and free speech as online fast lanes."

India, Japan, The Netherlands, Chile and Slovenia all banned zero rating in their own net neutrality rules, fearing that simply opening the door to the practice would cause problems. Based on Comcast and Verizon's plans to give their own content a leg up in the market, those worries seem perfectly justified.

You can find the groups' full letter to the FCC here.

Most recommended from 18 comments


CyberGuy
join:2006-08-21
Colbert, WA

5 recommendations

CyberGuy

Member

Time to address data caps...

It seems like the carriers think all we do is check email in a text-based client. Caps need to be updated to reflect that we don't live in the Dark Ages anymore.

buzz_4_20
join:2003-09-20
Dover, NH
(Software) Sophos UTM Home Edition
Ruckus R310

4 recommendations

buzz_4_20

Member

Bottom Line

Zero Rating is the same thing as charging extra for nonparticipating services.

Here's How... Instead of data caps growing as data usage increases and data transport costs drop, the ISPs claim that the zero rating reduces the paid for consumption which means caps stay intact... prices will rise as they always do.
This means you have the same net-effect. Services that don't sign on are at a disadvantage by coming at a higher cost for the consumer to use.

Zero rating also shows that caps are not needed in the first place.

XNemesis
join:2002-11-16
Kitchener, ON

3 recommendations

XNemesis

Member

Good Luck

Until you see the FCC really crack down on this behaviour and lay heavy fines with teeth that would send a hard message to these companies, they'll always be a compromised organization.