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FreeBee gives companies option to zero-rate some or all of their online content.
Verizon on Tuesday became the latest U.S. telco to try out sponsored data services.
Called FreeBee Data, it comes in two versions. The first, FreeBee Data 360, lets companies cover the entire cost of a consumer accessing their mobile Website or app, paying Verizon on a per gigabyte basis.
The second, FreeBee Data, allows companies to pick up the tab when customers carry out a specific action – such as accessing a video or audio stream, or downloading an app hosted on their Website. In this instance, companies pay Verizon on a per click basis..png)
The FreeBee logo will appear alongside any sponsored content so users know that it won’t count against their data allowance.
"The opportunity to add value and utility to consumers’ everyday experiences will fundamentally transform how brands and businesses connect with their customers," said Colson Hillier, vice president of consumer products at Verizon, in a statement.
Verizon has already launched a beta version of FreeBee Data 360, and plans to launch a beta trial of FreeBee Data to 1,000 subscribers on 25 January. Several brands have already signed up for the latter, including publisher Hearst, smartphone game developer Gameday, and Verizon’s own AOL unit.
Verizon says FreeBee will help brands forge stronger ties with consumers, while customers will get access to mobile content without having to pay for it.
However, Verizon is also likely to attract attention from net neutrality advocates on grounds that FreeBee Data may encourage customers to access services from companies that can afford to cover the data costs, making it more difficult for smaller players to compete.
One could also argue that Verizon’s customers are already paying for the amount of data they consider necessary, and therefore giving companies the option to cover the cost could be seen as charging two parties for the same data.
These were criticisms levelled at AT&T when it rolled out its own sponsored data service in 2014. Similarly T-Mobile US has had to defend its Binge On service, which allows subscribers to access video from participating content providers without it counting against their data allowance.
