With the 5G wireless spectrum promising faster speeds and more internet coverage nationwide, this gaping hole called "Zero-Rating" threatens to leave cord cutters in the exact same situation there were in before unshackling themselves from pay TV. I'll go over what I mean by this, and how it could happen. However, before I cover that, let me provide and understanding of what 5G, …show more content…
This means there will be little or no competition when choosing a 5G internet service provider in the future. Therefore, the rules set forth to ensure Net Neutrality will remain important as we enter this 5G era. Let me go over Net Neutrality briefly, so we're all on the same page.
Net Neutrality
In February of 2015, the FCC instated rules known as the "Open Internet" rules. Many know them as the Net Neutrality rules. While there was much fear mongering from internet service providers (ISPs) and those and the pockets of ISPs, the open internet rules are really just three reasonable rules to ensure free and open communication on the internet. Those are
No Blocking: broadband providers may not block access to legal content, applications, services, or non-harmful devices.
No Throttling: broadband providers may not impair or degrade lawful Internet traffic on the basis of content, applications, services, or non-harmful devices.
No Paid Prioritization: broadband providers may not favor some lawful Internet traffic over other lawful traffic in exchange for consideration of any kind—in other words, no "fast lanes." This rule also bans ISPs from prioritizing content and services of their …show more content…
They will be using their video service DirecTV Now to test video traffic over their 5G network. DirecTV Now is Zero-Rated on AT&T network, which means it won't count against any data usage for AT&T customers.
If the test is successful and AT&T goes nationwide with this offering, customers will have their internet, telephone, and TV wrapped into a bundle with no real competition. Does that sound familiar? If zero-rating is permitted to continue, any video content that isn't DirectTV Now will be at a massive competitive disadvantage. In other words, customers will have little choice of ISP and no real choice of affordable service.
Instead of including explicit language on zero-rating in the FCC's open internet rules, the FCC has decided to take issues regarding zero-rating on a case by case basis. The FCC has recently issued judgement that AT&T zero-rating it's DirecTV Now service may be violating net neutrality. However, industry insiders feel that once current FCC Chairman Wheeler steps down later this month the open internet rules will be reversed.
Even prior to the FCC decision, AT&T seemed to think the next administration will side with big business. Jessica Conditt at Engadget