ESPN Eyes Subsidizing Wireless-Data Plans

ESPN, the cable sports channel majority-owned by Walt Disney, has had discussions with at least one major U.S. carrier to subsidize wireless connectivity on behalf of its users.

Under one potential scenario, the company would pay a carrier to guarantee that people viewing ESPN mobile content wouldn't have that usage counted toward their monthly data caps. No such arrangement is imminent, and ESPN isn't sure if the economics will work out, the people familiar with the matter said. There are also concerns that deals of this nature could attract the scrutiny of telecom regulators. Such a deal would mark a significant development in the wireless business, creating a new model for media and telecom companies to share the costs of bringing bandwidth-guzzling services to consumers. Another way media companies could compensate carriers is by sharing advertising revenue with them.