FCC Raises Fresh Concerns Over ‘Zero-Rating’ by AT&T, Verizon

The Federal Communications Commission raised new concerns about AT&T’s practice of excluding its new DirecTV Now streaming service from data charges and, for the first time, lobbed similar questions at Verizon Communications. In a pair of letters sent Dec 1, the FCC warned that so called zero-rating, which makes the data used by certain video services free for the carriers’ wireless customers, could harm competition and consumers. The agency argues the practice could deter consumers from accessing mobile-video services not affiliated with the carriers, such as those from Netflix or Hulu, which is co-owned by Walt Disney Co., Comcast Corp., 21st Century Fox and Time Warner Inc. Both AT&T and Verizon responded that the practice complies with existing rules and benefits consumers.