Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Tech News

Sponsored data is the newest threat to net neutrality

More mobile carriers are implementing sponsored data programs, though it saves customers money, in the long run it could seriously undermine net neutrality, give mobile carriers too much power, and cost companies and consumers.

digital trends

Power dynamics

Like T-Mobile before it, Verizon Wireless is implementing a sponsored data program. While these programs may, on the surface, seem to result in savings for customers, in the long run sponsored data seriously undermines net neutrality, gives mobile carriers too much power, and costs companies and consumers.

bar

Sponsorship perks

Sponsored web programs are enabled by data limits in wireless contracts. In your wireless contract, you pre-pay for a monthly allotment of data. Then, content providers pay the mobile carrier for their content to be exempt from the data count. For example, if you are a T-mobile user, you can watch videos on Netflix without that data counting towards your monthly limit.

If you run out of data this month, you will still be able to watch videos on Netflix without paying an additional fee. However, if you watch videos on YouTube, you’ll be charged by T-Mobile for the additional data.

The threat to net neutrality

AT&T started making deals with companies to provide sponsored data about two years ago. T-Mobile does it as well, and now Verizon is joining. Verizon already has deals with AOL, Heart Magazines, and Gameday, and will undoubtedly seek out more partnerships.

Advertisement. Scroll to continue reading.

Theoretically, these programs are good for customers because they give you a chance to do more online without paying extra fees. But these programs seriously threaten net neutrality, which is based on the idea that all information on the web should be equally accessible. Customers should have equal opportunity and incentive to view any and all web content, and all sites an equal chance to compete.

Paying their way in

Although it seems like you are saving money by using sponsored sites, another way of looking at it is that you are paying extra to access information that isn’t sponsored. Big companies are given an opportunity to pay their way into your device. Small companies can’t afford to get favored, and may not be able to keep up with the technical requirements. Carriers are given control over the terms of how sites engage with the device, and control over content.

Stay tuned

Customers and content-creators are speaking out against sponsored data programs, and the FCC is keeping its eye on the situation. If they receive enough complaints, mobile carriers will likely be investigated for violating net neutrality.

#MobileNetNeutrality

Advertisement. Scroll to continue reading.

Ellen Vessels, a Staff Writer at The American Genius, is respected for their wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when not writing, and has a passion for sustainability, social justice, and the arts.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Social Media

(SOCIAL MEDIA) It’s been a time of exciting product and feature announcements for Instagram with additions of Collabs, fundraisers, and desktop posts on deck

Tech News

(TECH NEWS) Charter Communications has withdrawn their request to impose data bans on customers now that net neutrality foe Ajit Pai is out and...

Business News

(BUSINESS NEWS) Telemarketers newest rouse is straight to voicemail cold calls. No one likes cold calls, and no one likes cold voicemails, so let...

Tech News

(TECH NEWS) If one person in a county has broadband, the FCC considers the entire county's needs met, leaving entire swaths of America ignored.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.