Zero Rating Narrows Digital Divide, Lyons Argues
Zero rating narrows, rather than widens, the digital divide, Daniel Lyons, associate professor at Boston College Law School, said Monday on the American Enterprise Institute's tech blog. Lyons said offerings by Sprint and T-Mobile of zero-rated services are helpful rather…
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than harmful to competition. The zero-rating question is seen as one of the toughest facing the FCC as it moves forward on net neutrality rules (see 1411140046). “Sprint and T-Mobile lack the scale and spectrum holdings they would need to compete head-on with Verizon and AT&T. Instead, each is introducing a differentiated product to appeal to customers who are not satisfied with traditional wireless broadband plans,” Lyons wrote. “Sprint’s social media plans target cost-conscious customers who want to access Facebook or Twitter on-the-go, but who are unwilling or unable to pay for full mobile Internet access. Similarly, T-Mobile’s streaming audio bundle appeals to heavy music consumers who would otherwise have to purchase larger data bundles or forego [sic] mobile music altogether on the larger carriers’ plans.”