FCC takes aim at AT&T, Verizon over 'zero-rating' services2017-01-12 16:06 by Daniela
Tags: FCC, AT&T, Verizon
The FCC chairman Tom Wheeler claims that AT&T and Verizon are probably violating the commission's net neutrality rules by allowing third-parties to pay for subscribers' data usage. The services which violate the rules are AT&T's DirecTV and Verizon's FreeBee Data 360.
The FCC is concerned AT&T and Verizon still have a cost advantage over rivals, since they provide the streaming service and own the networks. Wheeler sent a letter to several U.S. Senators on Wednesday, along with a report on the matter from The FCC's Wireless Telecommunications Bureau.
"All indications are that AT&T's charges far exceed the costs AT&T incurs in providing the sponsored data service," Wheeler said in his letter. "Thus, it would appear that AT&T's practices inflict significant unreasonable disadvantages on edge providers and unreasonably interfere with their ability to compete against...DirecTV."
Both AT&T and Verizon say their programs, which charge video providers instead of customers the cost of streaming the data, are open to any video company willing to pay the cost of customer data.
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