Impact of California ‘Net Neutrality’ Law on Free Data Services

California has enacted a “net neutrality” law banning “sponsored data” services that allowed companies to pay for, or “sponsor,” the data usage of their customers who are also AT&T wireless customers. Unfortunately, under the California law we are now prohibited from providing certain data features to consumers free of charge. Prior to California’s law, sponsored data customers were able to browse, stream and enjoy applications from sponsors without using their monthly data allowance.

We regret the inconvenience to customers caused by California’s new “net neutrality” law.  Given that the Internet does not recognize state borders, the new law not only ends our ability to offer California customers such free data services but also similarly impacts our customers in states beyond California. A state-by-state approach to “net neutrality” is unworkable. A patchwork of state regulations, many of them overly restrictive, creates roadblocks to creative and pro-consumer solutions. We have long been committed to the principles of an open Internet. We deliver the content and services our customers want because it’s what they demand, not because it’s mandated by regulation. We also believe Internet access should be available and sustainably affordable to all Americans, and strongly advocate for Congress to adopt federal legislation to make that possible while providing clear, consistent, and permanent net neutrality rules for everyone to follow.