FCC Sends Letters to AT&T And Verizon: Says Free Data Service A Rip-Off? Asks Companies To Explain

By Kelly Callanga - 05 Dec '16 08:51AM

AT&T and Verizon have just introduced free data to their customers. But it seems like the Federal Communications Commission thinks that these offers are not fair so they sent a letter to the telecommunications companies on Thursday.

According to The Verge, the FCC sent separate letters to AT&T and Verizon stating that these sponsored data plans both companies are offering, threaten net neutrality. The letter has been sent after both giant companies came up with similar plans.

The report states that the sponsored data offers let consumers select a service that does not use data, which is basically called "zero rating." This violation of net neutrality rules, as concluded by the FCC, lets AT&T and Verizon favor their own content over the services their competitors offer today.

FCC wireless bureau chief Jon Wilkins said in the letter that this scheme may harm customers. "These practices inhibit competition, harm consumers, and interfere with the 'virtuous cycle' needed to assure the continuing benefits of the Open Internet," as stated in the letter.

Wireless AT&T customers have been allowed by the company to stream their DirecTV video service if they are connected to AT&T's wireless network without using their data plans starting September. And recently, the company has just introduced a streaming service plan, also to wireless customers, only for $35 a month, as reported by CNET.

A similar offer was introduced by rival company Verizon, for letting their customers stream their Go90 video service without using up their data plans. The news site reports that both telecom giants say that the zero rating programs they offer charge the video providers instead of the customers. This is said to be open to video companies that are willing to pay their customer's data usage.

The letters sent by the FCC, according to Business Insider, demands AT&T and Verizon to respond on or before December 15. AT&T has already responded to the letter, stating that they will provide further information to the FCC that should explain why the government should agree to these free services that help consumers save money.

Meanwhile, Verizon says that they will respond promptly to the letter but still insists that these zero rating programs are for their customer's own good.