AT & T, Inc. (NYSE:T) announced that mobile subscribers will be able to stream its new DirecTV Now Service without the use of their data at an event in New York City yesterday. Zero rating is when mobile network operators, mobile virtual network operators and internet service providers don’t charge end customers for data use by specific applications or internet services through their network in limited or metered data plans.
The Federal Communications Commission warns AT&T that it may be violating net neutrality by implementing zero rating to the standard DirecTV service. T-Mobile US, Inc. (NASDAQ:TMUS) has been offering data-free use of music and video services for years, and Verizon Communications, Inc. (NYSE:VZ) has made its Go90 service free of data charges for all their subscribers.
This is not the FCC’s first concern nor will it be the last. Zero rating has become more appealing to the consumer and will likely continue to apply unless the Trump administration decides to nullify the service. DirecTV will be available on November 30th, there will be over 100 channels offered at $35 a month for a limited time.