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January 14, 2014

FCC May 'Intervene' if AT&T Sponsored Data Plan Found to Be Anti-competitive

The FCC will review a new AT&T sponsored data plan and could intervene if it’s later found to be anti-competitive.

Recently, FCC Chairman Tom Wheeler said that the AT&T plan could allow for “increased competition and increased efficiency” – both of which “benefit consumers.” However, in a statement at the Consumer Electronics Show Wheeler said, “Let's take a look at what this is, let's take a look at how it operates.  And be sure, that if it interferes with the operation of the internet; that if it develops into an anticompetitive practice; that if it does have some kind of preferential treatment given somewhere, then that is cause for us to intervene."

“It is not the sort of thing that should be prohibited out of hand,” Wheeler added. “But, again, history instructs us that not all new proposals have been benign. There has to be some ability on the part of government to oversee, to assess, and, if warranted, to intervene.”

However, several consumer groups are opposed to the AT&T plan, and are concerned about its impact on net neutrality. One example comes from Public Knowledge co-president Michael Weinberg. He said in a blog post the sponsored data plan is a “scheme that lets content creators buy their way around the company’s data caps. It’s bad news for everyone—but AT&T… It is actually just a win for AT&T.  This plan is a tremendous loss for everyone else.”

Image via http://images.politico.com

Public Knowledge wants to see tough scrutiny by the FCC on the AT&T plan. “Public Knowledge was delighted by Chairman Wheeler's willingness to take a hard look at AT&T's sponsored data scheme,” Weinberg said. “We hope the FCC takes swift action to open an inquiry to examine the ways that these types of schemes impact an open internet.”

Another concern was voiced by U.S. Rep. Anna G. Eshoo (D-Calif.), who said in a statement, the plan threatens “the open Internet, competition and consumer choice. It’s exactly why net neutrality rules came to exist in the first place and why these rules should apply equally to all forms of broadband Internet service.”

Yet, AT&T has defended the sponsored data plan.

“AT&T’s sponsored data service is aimed solely at benefiting our customers,” James Cicconi, senior executive vice president of External and Legislative Affairs at AT&T, explained in a statement. “It allows any company who wishes to pay our customer’s 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. We simply enable it. The bottom line is that this can save money for our customers. We see no reason why this is not a good thing.” He adds that the plan meets the FCC’s net neutrality rules.




Edited by Cassandra Tucker


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