Free data plans like T-Mobile’s Binge On let consumers stream internet video without counting their data usage toward monthly caps. The Federal Communications Commission has recognized these plans can benefit consumers and competition. What’s not to like about free data?
According to the lame duck FCC, the answer depends on who’s offering it. The FCC’s outgoing chairman said T-Mobile’s Binge On service is pro-competitive and pro-innovation. According to a recent FCC letter, however, it’s “anticompetitive” when AT&T gives free data to its mobile customers who subscribe to DirecTV’s streaming video service. That’s par for the course with the current FCC, which is more interested in picking industry’s winners and losers than protecting consumers.
That appears to be what the FCC is doing in this case. The agency’s letter acknowledges that AT&T offers the same payment terms to all companies that want to take advantage of free data services. AT&T doesn’t treat DirecTV any differently than it treats Netflix, Hulu, or any other video streaming provider. Read More