Zero-rating is the practice of providing Internet access without financial cost under certain conditions, such as by only permitting access to certain websites or by subsidizing the service with advertising. Commentators discussing zero rating often present it as a subtopic of net neutrality. While most sources report that use of zero-rating is contrary to the principle of net neutrality, there are mixed opinions among advocates for net neutrality about the extent to which people can take some benefits from zero-rating programs while not sacrificing net neutrality protections. Typical supporters for zero-rating include commercial companies selling data service or advertising. Those supporters argue that zero-rating enables consumers to make choices to access more data and leads to more people using online services. Typical opposition against zero rating includes consumer protection groups and net neutrality advocates. That opposition argues that zero-rating exploits the poor, creates opportunities for censorship or restrictions on freely accessing information and that it disrupts the free market which net neutrality protects.
Internet services like Facebook, Wikipedia and Google have built special programs to use zero-rating as means to provide their service more broadly into developing markets. The benefit for these new customers, who will mostly have to rely on mobile networks to connect to the Internet, would be a subsidised access to services from these service providers. The results of these efforts have been mixed, with adoption in a number of markets, sometimes overestimated expectations and perceived lack of benefits for mobile network operators. In Chile, the national telecom regulator ruled that this practice violated net neutrality laws and had to end by June 1, 2014. The FCC did not ban zero-rating programs, but it "acknowledged that they could violate the spirit of net neutrality".
Since June 2014, U.S. mobile provider T-Mobile US has offered zero-rated access to participating music streaming services to its mobile internet customers. In November 2015, they expanded zero-rated access to video streaming services. In January 2016, Verizon joined AT&T by creating its own sponsored data program, FreeBee Data, which "enables content providers to pay a wireless provider to allow its subscribers to engage with or consume a piece of content without it counting against the customers' monthly allotments". Sponsored data on behalf of content providers through AT&T or Verizon covers the costs for the viewers and attracts more consumers. Some people have characterized this as ISPs having created a toll-free service for online users.
Advocates of net neutrality state that sponsored data "allows well-heeled content providers to pay for placement to the disadvantage of smaller companies that can't afford the same luxury". Verizon's FreeBee Data program which allows its own customers to access certain content, like ESPN and its video streaming service, for free along with any other relevant app access and the data will not count against their monthly caps. In this way, big ISPs discriminate against data and content from those who do not pay to have their content included in the FreeBee or other sponsored programs.
Similarly, mobile network operators are also able to use the underlying classification technology like deep packet inspection to redirect enterprise-related data charges for employees using their private tablets or smartphones to their employer. This has the benefit of Toll-free / zero-rated applications allowing employees to participate in bring your own device (BYOD) programs.
Zero-rating certain services, fast lanes and sponsored data have been criticised as anti-competitive and limiting open markets. It enables internet providers to gain a significant advantage in the promotion of in-house services over competing independent companies, especially in data-heavy markets like video-streaming. A service provider, who is offering unlimited access to their service, will naturally seem more favourable to consumers over one where usage is limited. If the first provider is the one restricting access, they are creating a considerable advantage for themselves over their competition, thereby restricting the freedom of the market. As many new internet and content services are launched targeting primarily mobile usage, and further adoption of internet connectivity globally (including broadband in rural areas of developed countries) relies heavily on mobile, zero-rating has also been regarded as a threat to the open internet, which is typically available via fixed line networks with unlimited usage tariffs or flat rates.Facebook and the Wikimedia Foundation have been specifically criticized for their zero-rating programs, to further strengthen incumbent mobile network operators and limit consumer rights to an open internet.
In the EU, specific cases such as those of Portugal were under scrutiny by national and EU regulators as of 2017, following the BEREC regulation on net neutrality.
In addition to commercial interests, governments with a cultural agenda may support zero-rating for local content.
The following countries and telecommunications carriers currently offer these notable instances of zero-rated services.
|Country||Carrier||Mobile Wikipedia||Zero Wikipedia||Internet.org|
|British Virgin Islands||Digicel||Yes|
|British Virgin Islands||Flow||Yes|
|Democratic Republic of the Congo||Airtel||Yes|
|Democratic Republic of the Congo||Tigo||Yes|
|East Timor||Timor Telecom||Yes||Yes|
|Mexico||Telcel & Virgin||Yes|
|Republic of Congo||Airtel||Yes|
|South Africa||Cell C||Yes|
|St. Vincent & the Grenadines||Digicel||Yes|
|Trinidad and Tobago||Digicel||Yes||Yes|
|Turks and Caicos Islands||Digicel||Yes|
|Turks and Caicos Islands||Flow||Yes|
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