Net Neutrality Policy Likely to Permit Sponsored Data Programs

When the new rules for network neutrality arrive, rest assured the big wireless carriers will be unhappy. But they can take solace in at least one victory. "Zero-rating" programs, in which operators turn their pipes into advertising and promotional channels, will likely remain intact in the broadband regulation -- and might even flourish.

After the new Federal Communications Commission rules are implemented, adoption of zero-rating programs could accelerate. Increasingly, carriers are using mobile data as a weapon in the wireless war. As data grows as a revenue source -- and expense -- for the carriers, they may look to brands to help carry the cost, using an avenue that regulators permit. Still, the initiatives will face more careful scrutiny, though they will likely be allowed to continue. Gigi Sohn, special counsel of external affairs at the FCC, said the agency would review the practice on a "case by case basis." She described a "safety net" approach, assessing whether internet service providers are hindering consumer choice with their behavior.