AT&T and Verizon Bite Back At FCC on Net Neutrality
AT&T and Verizon Wireless vigorously defended their sponsored data programs in separate letters to the FCC this week. The agency asked both companies to offer some rationale for their DirecTV Now and FreeBee programs, respectively, which the FCC views as violating its net neutrality rules. The programs each allow customers to enjoy video content streamed over LTE without impacting their monthly data buckets. "The Bureau's approach would deny consumers a service they value, raise prices, lower consumption, and curb the disruptive potential ... all in the name of preserving profit margins for individual ... rivals," argued AT&T. Verizon took a different approach. "It's similar to the over-the-air broadcast TV model, where advertisers pick up the expenses, and to newspapers, where the bulk of the costs are covered by advertisers," said the company. Both AT&T and Verizon say they are committed to "an open and free internet" and suggest their programs are beneficial to consumers rather than harmful. FCC Chairman Tom Wheeler plans to resign once president-elect Donald Trump takes office in January 2017, and democratic commissioner Jessica Rosenworcel's appointment was not renewed. It's likely no action will be taken against either company until after a new chairman and commissioner, appointed by Trump, are brought on board.
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