AT&T Pushes Ahead on Toll-Free Data Plans in Wake of Net Neutrality

AT&T continues to move forward with its trial of toll-free, or sponsored, data, despite concerns from the government.

AT&T

Sponsored data plans allow businesses to pick up the bill for consumers who use certain apps or services, and it’s still unclear whether that might run afoul of new net neutrality rules.

As he’s indicated previously, AT&T mobile and enterprise CEO Ralph de la Vega characterized the effort as a billing method and not a speed issue, which could be interpreted as a violation of neutrality. He said his initial belief is that the net neutrality policies passed by the FCC last week won’t impact the company’s plans.

“It never was an issue of net neutrality,” he said. “I’m very pleased it looks like that will not be impacted.”

The new net neutrality rules are designed to prevent broadband providers from blocking, slowing or otherwise discriminating against rivals’ Internet traffic, which includes a ban on paid, priority fast lanes. They apply to wireless networks for the first time.

The agency doesn’t exactly bar wireless companies from offering sponsored data plans or exempting some types of applications from data caps in the new rules. But it reserves the right to look at whether such plans violate the rules if it receives complaints.

AT&T announced its plans for sponsored data a year ago, but has moved forward cautiously.

“It’s still in the nascent stages,” de la Vega said in an interview at Mobile World Congress in Barcelona. “We’ll continue to make it available. … We’re waiting to see if the market pull is there, rather than pushing it.”

De la Vega said that AT&T is letting customers ask for the service rather than pushing it hard. That said, he said that testing shows consumers engage more with advertisements when they know they won’t be charged for the data that such use generates.

As for the broader net neutrality rules, de la Vega said he has no problem with the principles being enforced, but reiterated AT&T’s disappointment that the FCC is using its Title II authority to regulate the Internet. Title II was originally written to regulate old copper phone lines, which the government considered a necessary utility. Verizon has also opposed the use of Title II, which the companies say they fear could be used for over-broad regulation down the road.

“They are using a 1930s law to regulate the Internet of the 21st Century,” he said, adding that he was also disappointed to see mobile and wired networks treated similarly despite the fact that mobile airwaves are a far more finite resource. “We clearly think there are other choices that could have been wiser.”

This article originally appeared on Recode.net.

Will you support Vox’s explanatory journalism?

Most news outlets make their money through advertising or subscriptions. But when it comes to what we’re trying to do at Vox, there are a couple reasons that we can't rely only on ads and subscriptions to keep the lights on.

First, advertising dollars go up and down with the economy. We often only know a few months out what our advertising revenue will be, which makes it hard to plan ahead.

Second, we’re not in the subscriptions business. Vox is here to help everyone understand the complex issues shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. We can’t do that if we have a paywall.

That’s why we also turn to you, our readers, to help us keep Vox free. If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today?

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via