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DirecTV Free Streaming On AT&T Mobile Network Could Face Regulatory Hurdles

Nelson Granados
This article is more than 3 years old.

AT&T is claiming that its new Data Free TV offer does not violate net neutrality rules, but I wonder if that’s really the case. Announced this week, Data Free TV is a data exemption plan--or zero rating plan--that allows AT&T wireless subscribers to stream DirecTV and U-verse live channels and DVR recordings, without it counting towards mobile data caps.

This is great for DirecTV and U-verse customers but here's the catch: AT&T owns DirecTV and U-verse. The Federal Communication Commission’s ( FCC ) net neutrality regulations say that internet service providers (ISPs) should treat all internet traffic equally. While legal battles continue over these rules, AT&T’s bold move to favor its own video services will prompt the FCC to determine whether or not this new zero rating plan infringes on net neutrality.

To see why AT&T is playing with fire, let's review the analogous zero rating plan of T-Mobile, Binge On. Any video provider can join Binge On for free as long as it meets the company’s technical guidelines, and T-Mobile has made deliberate moves to show commitment to this policy. According to T-Mobile “customers can watch all they want from nearly 90 participating Binge On providers including Netflix , HBO, Hulu, YouTube and Sling TV without ever burning up their high-speed data.” Even Verizon’s Go90 service was included in the Binge On program from the start, which may have eased any concerns from regulators.

AT&T counters with the statement that consumers can also stream videos from other content providers without using a plan's data through AT&T's sponsored data program. Under this program, services like Netflix or Hulu would be required to pay AT&T to get the data free exemption. The key here is whether any big or small streaming provider can access the AT&T cellular network equally and fairly via the sponsored data program, compared to the access that DirecTV gets.

DirecTV could be paying AT&T too, to make it fair, but skeptics will argue such payments are effectively internal accounting maneuvers. It is a similar situation to Verizon's Go90 service, which is making use of Verizon's sponsored program Free Bee Perks to avoid data caps. AT&T may be responding to Verizon's competitive move, but the difference is that DirecTV is a major content distributor, compared to Go90. If DirecTV streaming traffic ends up congesting the AT&T network, it will be easier to argue that Data Free TV hurts other video providers and non-DirecTV subscribers. In the end, AT&T may have to provide all streaming providers free access to their data exemption programs to avoid scrutiny.

I’ve written before about net neutrality and what it means for consumers. It’s a complicated issue and there are both benefits and drawbacks. In June, a three-judge panel at the United States Court of Appeals for the District of Columbia Circuit ruled in favor of net neutrality, so the fight is now heading to the Supreme Court. The debate gets even more complicated when trying to gauge whether a zero rating plan like Data Free TV is fair and neutral, as the video below shows.

Regardless, with more ISPs getting into the practice of zero rating and offering wireless data subscribers the opportunity to stream video without incurring data costs, scrutiny will increase. And with AT&T being a major player in the legal fight against the net neutrality ruling, introducing a biased zero rating plan may just provide more ammunition for the FCC to point a finger at AT&T and justify the existence of net neutrality rules to the Supreme Court.

The FCC clearly states that companies cannot have an unfair advantage in the marketplace by prioritizing their own content. Data Free TV could be crossing that line and will likely have to endure intense scrutiny, unless AT&T decides to let any video streaming provider join its program in a fair and equitable manner, like T-Mobile does.

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