Ad Data Is the Newest and Biggest Threat to Network Neutrality
Verizon yesterday announced its new sponsored data program . These words are boring, but they are just the latest manifestation of a growing trend of operators and Internet service providers to undermine the basic principles of net neutrality . Here’s what it means and how it affects you.
What is Sponsored Data?
Not all sponsored data programs are the same, but they all follow a similar pattern: First, carriers (such as AT&T, Verizon, and T-Mobile) start by limiting your monthly data distribution. They then do a deal with specific online services (like Netflix in the case of T-Mobile), so those companies don’t count towards your data limit. In some cases, this service may be offered for free (T-Mobile Music Freedom and Binge On are prime examples), but in most other cases, service companies must pay carriers for this privilege.
So far, AT&T and Verizon are sponsoring data-processing programs. The AT&T program was introduced about two years ago . The operator’s landing page lists untitled partner companies (Aquto, HipCricket, and others), but these companies partner with many brands you know, including Coca-Cola, Disney, Samsung, Kellogg’s, Lionsgate, and others. Verizon’s FreeBee plan is much newer. For its initial test launch, Verizon has partnered with AOL (which they own), Hearst Magazines and Gameday. We don’t know who else Verizon will partner with in the future, but the landing page states that it targets video and music streaming, app downloads, and even certain websites. Basically, Verizon could theoretically charge almost every service you use on the Internet for the right not to count your data.
Sounds like a feature. In fact, T-Mobile is proud to say that its programs are beneficial to consumers. They do not charge service providers to enter Music Freedom or Binge On (which technically means it is not “sponsored” data, but the principle is the same), these providers must adhere to certain technical requirements or they will benefit. and are taken into account in the restrictions of user data. To make matters worse, Binge On downgrades the video quality for all video streams, whether or not they are enabled. This made YouTube understandably frustrated when it still “costs” data to users, but also fails to deliver over 480 pixels of video. The controversy over this move did not go smoothly .
Why is that bad?
Every operator that introduced sponsored data plans has positioned them as beneficial to consumers. Indeed, at first glance, they seem to save customers money. The less data counts towards your limit, the less data you will have to pay and the less fees you are likely to incur. If companies want to pay your data bills, what’s the big deal?
Ad data violates the spirit of net neutrality
To understand why this is bad, we must go back to the basics of net neutrality . At its core, net neutrality is that everything on the Internet should be treated the same — a packet is a packet, and no packet should be handled differently than another. You don’t have to pay more for the electricity that powers your TV than for the electricity that powers your light bulbs, so why should you pay more for the pipe that runs Netflix than for the Internet that runs Facebook? This neutrality ensures that as new sites and companies emerge, they have a good chance of attracting customers, and you can use the Internet the way you like without worrying about costing you to do what your operator “discourages”. more. “
Net neutrality doesn’t mean you never have to pay for fast lane. This means that you do not need to pay extra for the services you use. In the long run, this is beneficial for everyone and promotes competition. If a company comes along that wants to challenge Netflix, it will be easier for them to do so (and more money to focus on content) if they don’t have to pay the exorbitant fees that Netflix pays wireless carriers just to deliver regular video. …
Sponsored Data Programs do not technically charge users additional fees for the services included in their packages. But they charge extra for services that are not included if they are indirect. Even with T-Mobile’s more or less consumer-friendly Binge On, when you hit the data limit, you’ll have to pay extra for data transfer to watch YouTube, but you won’t have to pay extra to watch Netflix. This choice influences which service you choose to spend your time with.
Advertising data gives carriers too much control
The way T-Mobile works program gives them an inappropriate ability to control how services are connected to the Internet. For now, Spotify or Netflix can easily make sure they are compatible with T-Mobile’s programs, but it could be more difficult in the future, especially if this trend becomes the norm for all carriers.
We’ve seen similar things in the world of smartphone manufacturing. Technically, Google has an “open” Android platform – and indeed, you can do whatever you want with Android – but if a manufacturer wants Google Play services (Gmail, Drive, Play Store, etc.) on their phone, there are more. hoops to jump over . This gives Google effective control over Android OEMs, if not explicit control. T-Mobile may promise not to abuse this power right now, but other carriers (or future T-Mobile) may not be as credible. Even if commission-free programs like T-Mobile become the norm – and plans from Verizon and AT&T seem to indicate that other carriers will still want to charge – we’ll still have a problem with carriers dictating the terms of the connection. third party companies.
Additional fees make the services you want to use more expensive
Data transfer programs sponsored by AT&T and Verizon are also causing more serious problems. Partnerships with companies like Disney and Samsung make it clear that larger companies can pay to maintain a dominant position. It’s unclear what services these companies are paying AT&T and (soon) Verizon for to free them from their data plans. It can be as simple as advertising for Samsung products, aside from your data limit. Or maybe Samsung will pay to give Milk Music (yes, this is a real service that Samsung offers) an edge while Spotify is stuck on a limited lower-tier internet.
If you’ve followed the net neutrality debate, you might recognize this image . This is what we have all feared: paying extra for each service or group of services we want to access on the Internet. Sponsored data programs do not charge customers additional money directly, and do not necessarily prohibit the provision of any service. However, they provide a paid bandwidth (or at least a bandwidth with additional technical requirements) on the Internet for a select group of services, which then become more attractive to the end user. Companies that can’t afford good performance don’t get it, whether they pay in data or dollars. These costs are inevitably passed on to the consumer, which means that even if you don’t pay your carrier for these services, you will still pay more. Whatever one may say, operators choose winners and losers, which is bad for everyone.
What can you do
As with most net neutrality issues, there is not much that individual users can do alone. The FCC was given more investigative powers to investigate net neutrality violations last year, but there is still a lot more to investigate. Meanwhile, some sponsored data processing programs are, frankly, pretty good deals for consumers in the short term if you ignore the subtle ways they harm the system as a whole. However, if you want to do something to express your concerns about sponsored data processing programs, there are several things you can do:
- Don’t settle for sponsored data processing programs. The only major sponsored opt-out data programs are T-Mobile, which are admittedly also the most consumer-friendly. However, Binge On still has a downside – limiting all video to 480p, so you might have a reason to turn it off anyway . It might seem like it sucks that Netflix still counts your data, but at least it does send a small message.
- File a complaint with the FCC. We’ve covered how to file a complaint with the FCC . Even if the FCC is unable to do something immediately, the organization keeps the complaints and uses them to decide what should be investigated. The FCC is already looking at sponsored data programs from AT&T, T-Mobile and (not surprisingly) Comcast. The investigation has not yet begun, but complaints may lead to action.
The bad news is that there is little you can do alone but speak up. The good news is, a saying can help! Operators are aware that sponsored media programs are controversial and that the FCC has more authority to act on complaints received than in previous years. If you are unhappy with the idea that operators are charging companies to access a “better” Internet, let them know and the FCC.