2014-01-06

The Net Neutrality drums are starting to bang again. This year there will likely be stories related to how data is brought to our Android devices, who will cap it, and who will unleash it. AT&T announced at CES on Monday their idea which gives companies the ability to sponsor data in an attempt to save users on data costs.

The goal on the surface is simple. A user visits a sponsored app or streaming service, and the data costs are offset from the user to the sponsor. The AT&T press release likens it to using an 800 number on our phones. We call that toll free number and do not pay for the call, that cost is pushed to the provider of that number.

Here is their statement regarding Sponsored Data:

With the new Sponsored Data service, data charges resulting from eligible uses will be billed directly to the sponsoring company; the customer simply enjoys their content via AT&T’s wireless data network.  Customers will see the service offered as AT&T Sponsored Data, and the usage will appear on their monthly invoice as Sponsored Data.  Sponsored Data will be delivered at the same speed and performance as any non-Sponsored Data content.

Here are some examples they provided on how this data would be subsidized:

Encouraging customers to try a new smartphone or tablet app.

Promoting movie trailers or games.

Providing patient healthcare support via wellness videos.

Encouraging customers to browse mobile shopping sites.

Allowing businesses with ‘Bring Your Own Device’ policies to pay for the data employees use for specific business-related apps and services.

Enhancing customer loyalty programs by providing sponsored data access to products and services.

The debate is now going to hinge around this giving too much power to larger companies to sponsor ther applications and make the barrier to entry higher for their competitors. Anyone can sponsor data. It will be an investment for any company and preferential treatment will not be given to one company over another. It will produce this internet though that will feel more corporate owned than free and open.

What do you think? Is this the beginning of the end of the internet as we know it, or is this simply a way to save consumers and give some apps and streaming services leverage in mobile?

 

Sources:

AT&T

H/T The Verge and Android Central

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