Analysts: Sponsored data plans for wireless will survive FCC's net neutrality rules

The Federal Communications Commission's recently published network neutrality rules will not spell doom for wireless carriers that want to launch sponsored data plans, according to a report from analysts at Wall Street firm New Street Research. In a lengthy research note on the new rules, the analysts note that the FCC left the door open for sponsored data plans. As expected, the FCC "did not take the view that sponsored data should be treated with a bright line ban, as being similar to paid prioritization," wrote New Street analysts Jonathan Chaplin, Spencer Kurn, Zach Monsma and Vivek Stalam. Sponsored data plans give customers free access or zero-rated data to certain services that the providing companies subsidize.

Indeed, the FCC noted in its rules that some commenters asserted that "sophisticated approaches to pricing also benefit edge providers by helping them distinguish themselves in the marketplace and tailor their services to consumer demands. Commenters assert that such sponsored data arrangements also support continued investment in broadband infrastructure and promote the virtuous cycle, and that there exist spillover benefits from sponsored data practices that should be considered." Ultimately, the FCC decided to taken an open-minded approach to sponsored data plans. "We are mindful of the concerns raised in the record that sponsored data plans have the potential to distort competition by allowing service providers to pick and choose among content and application providers to feature on different service plans. At the same time, new service offerings, depending on how they are structured, could benefit consumers and competition," the agency wrote. "Accordingly, we will look at and assess such practices under the no-unreasonable interference/disadvantage standard, based on the facts of each individual case, and take action as necessary."