T-Mobile US drew some criticism for a new program that exempts certain online video services from data caps, but Federal Communications Commission Tom Wheeler today praised the carrier's zero-rating plan.
"Binge On" exempts 24 services including Netflix, HBO, and Hulu from T-Mobile's high-speed data limits while downgrading quality of video to reduce data usage. The FCC's net neutrality rules don't specifically ban such zero-rating schemes, but they allow for complaints with the commission judging on a case-by-case basis whether a practice "unreasonably interferes" with the ability of consumers to reach content or the ability of content providers to reach consumers.
If anyone were to file a complaint against T-Mobile's video exemption, Wheeler doesn't seem likely to stop the practice.
"Its clear in the Open Internet Order that we said we are pro-competition and pro-innovation," Wheeler said today. "Clearly this meets both of those criteria. It's highly innovative and highly competitive."
Wheeler made the statement after today's FCC meeting when a reporter asked him if Binge On raises any net neutrality concerns.
Video providers don't have to pay T-Mobile for placement in Binge On. T-Mobile also has a similar program for music streaming called Music Freedom.
T-Mobile US CEO John Legere said Binge On is "not a net neutrality problem" when he announced the service, pointing out that it doesn't cost providers anything and consumers can shut it off if they prefer higher-quality video that counts against caps.
Consumer advocacy group Public Knowledge criticized T-Mobile, saying customers should be the ones to choose which services get zero-rated. "Under its current model, customers might choose to use a service simply because it doesn't count towards their data plans rather on its merits," the group said.
The New York Times editorial board raised concerns, writing that "Binge On is certainly better than plans in which websites pay telecom companies to be included. But it is not yet clear whether these free plans will inappropriately distort how consumers use the Internet."
Wheeler said that the FCC will keep an eye on Binge On, as it does with other programs that would be evaluated against the commission's net neutrality rules. AT&T has a "Sponsored Data" program that lets companies pay for data exemptions, and that seems to have avoided major FCC scrutiny.
Critics of the FCC's rules said they would prevent innovation since companies have to seek permission from the commission before unveiling new offerings. Wheeler today said T-Mobile's Binge On proves that hasn't come to pass.
"I also chuckle at the fact that as we were debating this, everyone was saying, 'oh this is going to thwart innovation, it's going to be terrible, people are going to come to the FCC to say, "mother, may I?" before they do anything.' Well that certainly didn't happen here," Wheeler said.
The "Mother, may I?" line was used repeatedly by Republican FCC Commissioner Ajit Pai and industry group CTIA-The Wireless Association, which represents T-Mobile and other carriers.
We asked the FCC what it thinks about a new Comcast streaming video service that doesn't count against Comcast data caps, but a commission spokesperson declined comment.
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