• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechThe Mobile Executive

How AT&T and Verizon Are Testing the Limits of Mobile Net Neutrality

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
September 12, 2016, 5:56 PM ET
Photograph by Getty Images

Federal net neutrality rules are supposed to prevent Internet service providers from discriminating against content providers—but also from unfairly favoring their own content.

The wireless industry has been testing the boundaries of the rules, an effort that’s taken off over the past few days with moves by Verizon Communications and AT&T, the two largest mobile carriers. Some critics are calling on the Federal Communications Commission to crack down on the two carriers, which have exempted some of their own video services from customers’ monthly data allowances, a practice known as zero rating.

Last week, AT&T (T) said customers who subscribed both to its wireless service and its DirecTV satellite service would be allowed to watch DirecTV content on their mobile devices without counting against monthly data limits. On Monday, Verizon (VZ) said it customers could watch its NFL mobile service without using up data, following an earlier zero rating for customers watching the carrier’s Go90 short video service. Verizon pays the NFL $1 billion a year for exclusive rights to stream football games on mobile.

With the new zero rating, that means that a Verizon customer could watch as much NFL or Go90 video on their phone as they wanted. But if they watched video from competing services like ESPN (DIS) or YouTube (GOOG), they would be using up their data allowances. Or an AT&T customer could watch DirecTV without limits but would run into the monthly data cap if they watched too much of Dish Network’s (DISH) Sling TV instead.

That has public advocacy groups worried that the carriers’ moves could be thwarting the intent of the FCC’s net neutrality rules.

“AT&T is using its latest data-cap exemptions to prop up its satellite-TV business by disfavoring the competitive and diverse video choices people have online,” said Matt Wood, policy director at public interest group Free Press, last week. Wood was similarly critical of Verizon’s Go90 data exemption, when it became public in February.

Get Data Sheet, Fortune’s technology newsletter.

FCC Chairman Tom Wheeler has not taken a position on the carriers’ zero ratings of their own services yet, but has said his agency will monitor the industry’s behavior. “The Commission’s informal policy review into this issue is ongoing,” an FCC spokeswoman said on Monday. “Chairman Wheeler said the Commission would keep an eye on new developments in this area and we are continuing to do so.”

That’s the appropriate move at this stage, according to Ryan Clough, general counsel at public interest group Public Knowledge, another supporter of the net neutrality rules. The commission needs to evaluate the impact of the zero-rated services on consumer preferences and competing services. “It’s appropriate for the FCC to gather facts,” Clough said. “We do expect them to scrutinize these plans.”

The carriers contend that they have nothing wrong and that consumers benefit from being able to watch their video programming without using up data allowances.

“We believe this program is fully consistent with the FCC’s rules,” a Verizon spokesman said. “The FCC has said that they will not apply their rules in ways that deny consumers the benefits of new services that bring them more choices.”

“We are not treating our services differently from any other data,” AT&T said in a statement. “This feature is simply our way of saying thanks to customers that purchase both video and mobility services from AT&T. Other content providers can do the same thing through our sponsored data program.”

In several past efforts to preserve net neutrality, the FCC had exempted the mobile industry. But after courts struck down those efforts, the agency last year turned to a broader strategy based in laws that allow the regulation of telephone carriers, and the mobile industry was included for the first time.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Big TechSpotify
Spotify users lamented Wrapped in 2024. This year, the company brought back an old favorite and made it less about AI
By Dave Lozo and Morning BrewDecember 4, 2025
2 hours ago
InnovationVenture Capital
This Khosla Ventures–backed startup is using AI to personalize cancer care
By Allie GarfinkleDecember 4, 2025
6 hours ago
AIEye on AI
Companies are increasingly falling victim to AI impersonation scams. This startup just raised $28M to stop deepfakes in real time
By Sharon GoldmanDecember 4, 2025
7 hours ago
Jensen Huang
SuccessBillionaires
Nvidia CEO Jensen Huang admits he works 7 days a week, including holidays, in a constant ‘state of anxiety’ out of fear of going bankrupt
By Jessica CoacciDecember 4, 2025
7 hours ago
Ted Pick
BankingData centers
Morgan Stanley considers offloading some of its data-center exposure
By Esteban Duarte, Paula Seligson, Davide Scigliuzzo and BloombergDecember 4, 2025
7 hours ago
Zuckerberg
EnergyMeta
Meta’s Zuckerberg plans deep cuts for metaverse efforts
By Kurt Wagner and BloombergDecember 4, 2025
7 hours ago

Most Popular

placeholder alt text
Economy
Two months into the new fiscal year and the U.S. government is already spending more than $10 billion a week servicing national debt
By Eleanor PringleDecember 4, 2025
12 hours ago
placeholder alt text
North America
Jeff Bezos and Lauren Sánchez Bezos commit $102.5 million to organizations combating homelessness across the U.S.: ‘This is just the beginning’
By Sydney LakeDecember 2, 2025
2 days ago
placeholder alt text
Success
‘Godfather of AI’ says Bill Gates and Elon Musk are right about the future of work—but he predicts mass unemployment is on its way
By Preston ForeDecember 4, 2025
8 hours ago
placeholder alt text
Economy
Ford workers told their CEO 'none of the young people want to work here.' So Jim Farley took a page out of the founder's playbook
By Sasha RogelbergNovember 28, 2025
6 days ago
placeholder alt text
Health
Bill Gates decries ‘significant reversal in child deaths’ as nearly 5 million kids will die before they turn 5 this year
By Nick LichtenbergDecember 4, 2025
19 hours ago
placeholder alt text
North America
Anonymous $50 million donation helps cover the next 50 years of tuition for medical lab science students at University of Washington
By The Associated PressDecember 2, 2025
2 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.