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FCC finds sponsored data at AT&T, Verizon can hurt competition

Jan. 11, 2017 4:36 PM ETAT&T Inc. (T) StockT, VZ, TMUSBy: Jason Aycock, SA News Editor27 Comments
  • AT&T (T -0.5%) and Verizon (VZ -0.6%) are in the crosshairs at the FCC again, as the agency's investigation into sponsored data programs -- including "zero rating," where carriers exempt their own content from using customers' data caps -- shows they could hurt consumers and competition.
  • Ultimately, the move may not mean much, with Chairman Tom Wheeler set to leave the agency Jan. 20. The FCC isn't taking any enforcement action (which would be lengthy in scope) against either carrier.
  • Sponsored data programs at those companies can cause harm "by unreasonably discriminating in favor of select downstream providers, especially their own affiliates."
  • Senior Republican Commissioner Ajit Pai -- expected by many to serve as interim chairman with a GOP majority as soon as next week -- says the new staff report "does not reflect the views of the majority of commissioners," suggesting a possible reversal of course after the inauguration.

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