AT&T says 'sponsored data' does not violate network neutrality

AT&T issued a statement saying its new "sponsored data" service does not violate the Federal Communications Commission's network neutrality rules.

"We are completely confident this offering complies with the FCC's Net neutrality rules, which our company supports," said Jim Cicconi, AT&T senior executive vice president of External and Legislative Affairs. He reiterated AT&T's claim that the offering is actually good for consumers by helping them save money. "AT&T's sponsored data service is aimed solely at benefiting our customers," he said. "It allows any company who wishes to pay our customers' costs for accessing that company's content to do so. This is purely voluntary and non-exclusive. It is an offering by that company, not by AT&T."

Paul Gallant, an equities analyst for Guggenheim Securities, said in a research note recently that the FCC rules, which were established three years ago, are fairly lenient toward wireless companies when it comes to developing new business models. The rules only ban a few specific actions, such as a wireless carrier blocking access to a voice over IP service. But the rules don't necessarily prohibit anything like AT&T's sponsored data. What's more, he added, AT&T's argument that consumers will actually benefit by getting more wireless data service without having to pay for it will resonate positively with the FCC. This is an "effective argument that is likely to lead the FCC to permit AT&T and other wireless operators to pursue Sponsored Data-type arrangements," he said.