Wyden 'Raises Concerns' on AT&T/Time Warner on Data Caps, Zero Rating

and zero-rated content, two anticompetitive practices that harm consumers,” Wyden told Wheeler in a letter dated Tuesday. Data caps have “everything to do with profiting from an ever-more-consolidated broadband market” and those that zero-rate data at ISP discretion “violate the principle of net neutrality,” Wyden said. “I am deeply concerned that if AT&T acquires Time Warner’s content, the new mega-company will have incentives to prioritize its own content over content created by small business, independent artists or by its rivals.” He said he's prepared with legislation if necessary, citing his 2012 measure called the Data Cap Integrity Act: “Over the coming months, I will continue to keep an eye on data caps and zero-rating, with the full intention of zealously pursuing legislation like the Data Cap Integrity Act, should it be required.” Zero rating is seen as a key issue in reviewing AT&T/TW (see 1611020034). An AT&T spokesman pointed to statements from Senior Executive Vice President Bob Quinn when asked about Wyden's letter. Quinn said sponsored data "is an incredibly popular service that we hope regulators won't take away from the tens of millions of people who enjoy it today from several different companies" and the FCC "has been monitoring current sponsored data offerings on an industry-wide basis, and because those offerings benefit consumers, we don't expect the FCC to act rashly in this area." He defended AT&T's current offerings: "Through sponsored data, consumers can watch DirecTV content on their AT&T mobile devices without worrying about data changes. We welcome any video provider that wishes to sponsor its content in the same way and on equal terms. In September, we began offering our DIRECTV Everywhere app, which provides a customer access to all of their authorized television stations using sponsored data, including competitors to CNN. There is no discrimination there and we have repeatedly stated that we will offer the same deal on sponsored data to everybody who wants it." Mobile Future Executive Director Allison Remsen also defended the use of such data plans, in response to Wyden's letter: “New data options and business models reflect a dynamic marketplace that has companies constantly looking for new ways to differentiate themselves and compete," she said. "Consumers clearly believe free is good and are flocking to free data options -- it’s a win/win for wireless subscribers.”