NNSquad - Network Neutrality Squad
[ NNSquad ] ATT pushing "toll free" data plans, implies extra charges for Apple FaceTime users -> major anticompetitive risks
ATT pushing "toll free" data plans, implies extra charges for Apple FaceTime users -> major anticompetitive risks http://j.mp/NzQFZb (Fierce Mobile) AT&T (NYSE:T) CEO Randall Stephenson said Tuesday the company is still mulling a proposal to charge application developers for data consumed by customers, stating that some content providers have asked the operator to implement the change. ... Earlier this week, 9to5Mac posted an error message discovered in Apple's iOS 6 beta 3 software that asks users to contact AT&T to enable FaceTime over cellular, which could be an indication that AT&T plans to charge for the service. In the past, all FaceTime calls have taken place over Wi-Fi connections, but Apple enabled the feature to run over cellular data networks for iOS 6, which will launch this fall. "I've heard the same rumor," Stephenson said Tuesday. He said that for now, AT&T remains focused on working with Apple to stabilize the technology enabling FaceTime over 3G, adding "It's too early to talk about pricing." - - - It's critical to understand the essentially duplicitous game AT&T is playing here. If large content providers are paying AT&T to provide data access to their users without consuming those users' data allocations, there will be every incentive for AT&T to further restrict those generic data allocations and raise associated data prices, arguing that "Most users just use the big guys' 'free data' Web sites anyway!" One can even imagine "free data" cell plans where *only* data access to those sites that are paying AT&T would be allowed. Either way, this will have the effect of squeezing out new players who can't afford to pay into AT&T's double-monetization scheme, and would likely have drastic anticompetitive effects. Pressure on other carriers to play the same game would be enormous. As for Apple FaceTime, Stephenson's quote that "It's too early to talk about pricing" should be viewed with notable alarm. AT&T shouldn't be even *involved* in "FaceTime pricing" -- this strongly suggests that AT&T may indeed be planning some sort of charge above and beyond the app's ordinary data usage itself. --Lauren-- Lauren Weinstein (lauren@vortex.com): http://www.vortex.com/lauren Co-Founder: People For Internet Responsibility: http://www.pfir.org Founder: - Data Wisdom Explorers League: http://www.dwel.org - Network Neutrality Squad: http://www.nnsquad.org - Global Coalition for Transparent Internet Performance: http://www.gctip.org - PRIVACY Forum: http://www.vortex.com Member: ACM Committee on Computers and Public Policy Lauren's Blog: http://lauren.vortex.com Google+: http://vortex.com/g+lauren / Twitter: http://vortex.com/t-lauren Tel: +1 (818) 225-2800 / Skype: vortex.com _______________________________________________ nnsquad mailing list http://lists.nnsquad.org/mailman/listinfo/nnsquad