Policy Review of Mobile Broadband Operators’ Sponsored Data Offerings for Zero-Rated Content and Services

This report presents the results of the Federal Communications Commission’s Wireless Telecommunications Bureau staff review during 2016 of sponsored data and zero-rating practices in the mobile broadband market. Based on this review of these offerings, the report puts forward a draft framework for evaluating mobile zero rated data offerings generally.

WTB issues this report in fulfillment of its established responsibility to “advise[ ] and make[ ] recommendations to the Commission” regarding “policy goals, objectives, programs and plans for the Commission on matters concerning wireless telecommunications, drawing upon relevant economic, technological, legislative, regulatory and judicial information and developments.” Mobile broadband providers are experimenting with a variety of sponsored data and zero-rating initiatives. While this dynamic environment has benefited consumers, these business arrangements may raise many of the same economic and public policy issues involving network owners that the Commission has long considered. In particular, sponsored data offerings by vertically integrated mobile broadband providers may harm consumers and competition in downstream industry sectors by unreasonably discriminating in favor of select downstream providers, especially their own affiliates.