FCC warns of risks to consumers of “zero-rating” cellphone programs

The Washington Post reports:

If you've used or heard of programs such as T-Mobile's Binge On or Music Freedom, then you're familiar with an increasingly common business tactic known as zero rating: the decision by a cellphone carrier to let you stretch your data plan by exempting some services, such as Spotify or Netflix, from your monthly data cap.

But now, federal regulators are raising concerns about two such programs operated by AT&T and Verizon, saying that although they potentially help customers get more out of their plans, the programs pose “significant risks to consumers and competition” and may even violate a key part of the government's net neutrality rules.

The full article is here. The Federal Communications Commission white paper discussed in the article is here.

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