FCC Ends ‘Zero-Rating’ Review

The Federal Communications Commission stopped its review of wireless carriers that exclude their own video-streaming services from customers’ usage caps, closing an inquiry that began under the previous administration.

The FCC previously raised concerns about the so-called zero-rating practices by AT&T and Verizon, in which those carriers didn’t apply data used on their streaming services toward customers’ data-usage charges. The agency warned that zero-rating could harm competition by deterring consumers from using services, such as those from Netflix, that aren’t connected with a carrier. The carriers have argued that the practice complies with existing rules and benefits consumers. On Feb 3, however, the acting head of the FCC’s wireless bureau, Nese Guendelsberger, sent letters to AT&T, Verizon and T-Mobile US notifying them that no further action would be taken. The action also “sets aside and rescinds” an earlier FCC report raising concerns about zero-rating, along with “any and all guidance, determinations, and conclusions contained therein.” That report will have “no legal or other effect or meaning going forward.” The FCC’s newly appointed chairman, Ajit Pai, has criticized the zero-rating investigation in the past, calling it “sad—and pointless,” and noting that any action “can quickly be undone.” On Feb 3 he said, “Going forward, the Federal Communications Commission will not focus on denying Americans free data. Instead, we will concentrate on expanding broadband deployment and encouraging innovative service offerings.”