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U.S. telco claims mobile video app does not violate net neutrality because it uses its own sponsored data service.
Verizon has exempted network traffic generated by its Go90 mobile video app from its customers’ data plans, and insisted that it is not violating net neutrality rules.
"Beginning on or about 4 February 2016, if you are a Verizon Wireless postpaid customer and you download the current version of Go90, you can watch any video on Go90 without incurring Verizon Wireless data usage charges so long as you are connected to LTE," the U.S. telco said, in its updated Go90 terms and conditions, published on Friday.
Verizon said the move – known as zero-rating – does not breach net neutrality rules because it uses its own sponsored data service, called FreeBee Data 360.
"FreeBee Data 360 is an open, non-exclusive service available to other content providers on a non-discriminatory basis," said Verizon, in a report by Recode on Friday. "Any interested content provider can use FreeBee Data 360 to expand their audiences by giving consumers the opportunity to enjoy their content without incurring data charges."
However, one could 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.
As a result, Verizon is probably more than covering the cost of allowing subscribers to access Go90 without incurring data charges. The same cannot be said of the content providers that take up Verizon’s FreeBee Data 360 offer.
Yahoo interest
Meanwhile, in a separate report by CNBC on Friday, Verizon CEO Lowell McAdam confirmed that he would be interested in acquiring Yahoo.
The struggling Internet company announced last week it is considering asset sales, and plans to cut 1,650 jobs in a bid to reverse its ailing fortunes.
Verizon last year acquired AOL for US$4.4 billion in a bid to tap into the online advertising market.
"At the right price, I think marrying up some of their [Yahoo’s] assets with AOL and the leadership would be good," McAdam said in the CNBC report.
