Comcast’s Latest Zero-Rating Plan Threatens Video Choice

[Commentary] Comcast's exemption of Stream TV from data caps presents a straightforward example of the anticompetitive problems zero-rating can raise, and provides little consumer benefit. Comcast is attempting to frame its self-serving, discriminatory actions in a way designed to slip through real or imagined loopholes or exceptions to both the Open Internet rules or its merger commitments, but none of these attempts work. Over and above the legal and technical issues are the competitive issues. Comcast is the nation's most dominant video distributor and the largest broadband provider. Because (unlike T-Mobile) it has a legacy video business to protect, it is easier to see how it might have an anticompetitive motive. Because it is so large, its actions will have a disproportionate effect. Also, most of Comcast's customers do not have other choices of truly high-speed (25 Mbps and up) broadband. That means that if competing video services are disadvantaged on Comcast's network, it's not like they can encourage Comcast's customers to switch to another provider.

Although some network neutrality advocates might have a different take on T-Mobile’s zero-rating, Comcast’s program raises a host of issues under the Open Internet rules, the consent decree, and -- most importantly -- general principles of competition.