Net neutrality update March 2016
More on zero rating: Comcast’s Stream TV service came under scrutiny this month, with the not-for-profit advocacy group Public Knowledge filing a complaint with the Federal Communications Commission (FCC) that Stream TV usage is excluded from customers’ data caps. Public Knowledge argued that this is inconsistent with the FCC’s Open Internet Rules and is also in breach of the conditions applied to Comcast’s purchase of NBC-Universal. Comcast defended Stream TV in a response to the FCC, arguing that, as a cable service, Stream TV is not subject to the FCC’s Open Internet Order (see coverage from MediaPost and the Hollywood Reporter). Comcast also argued that its service does not violate either the letter or spirit of the FCC’s net neutrality rules.
T-Mobile announced the expansion of its Binge On service to include more services, most notably YouTube, together with new options to give customers more control and “video streaming providers more options to choose how Binge On’s video optimization will apply to their content”. T-Mobile’s changes to Binge On make it easier for both customers and video services to opt out of the service; in particular, video providers that are not included in Binge On’s free streaming can now opt out of Binge On's compressing of video streams to around 1.5Mbit/s. See commentaries from Ars Technica and CNet. A study by professors at the University of Florida highlighted the potential risks to consumers of zero rating certain Internet content and services (see this previous post for details of a similar study). Network World reported the view of advocacy groups that zero rating allows ISPs to pick "winners and losers" in violation of the FCC’s net neutrality principles.
Verizon on net neutrality: Verizon published a new statement on net neutrality saying the company is “committed to an open Internet” and supports bans on blocking, throttling and paid prioritization as well as the FCC’s general conduct standard. According to Broadcasting & Cable, the company is seeking to “mend some fences with the FCC” following previous challenges, while Fierce Wireless commented that the statement did not address zero rating.
Netflix on throttling video: the Wall Street Journal reported that Netflix “for more than five years…has limited its video speeds to most wireless carriers across the globe, including AT&T and Verizon, to “protect consumers from exceeding mobile data caps,” which may discourage future viewing” (also see this Netflix blog post). Speeds have been limited to 600Kbit/s in order to strike “a balance that ensures a good streaming experience while avoiding unplanned fines from mobile providers”. Commentaries focussed on Netflix’s pro net neutrality stance and whether this practice contradicted its position or not; see coverage from BBC News, Ars Technica, Forbes, Wired, Fortune and the Information Technology & Innovation Foundation (ITIF).
FCC developments: In a speech FCC Chairman Tom Wheeler defended the Commission’s net neutrality rules, stating that they had not had the adverse effect on broadband investment that was predicted by some critics. In an interview with NPR, Tom Wheeler said he expected a decision from the court proceedings in relation to the new rules in the next few weeks and that he was “confident of our authority in this matter”. Finally, InsideSources reported that small Internet service providers have been exempted from the new rules’ transparency requirements.
