Verizon Wireless, like AT&T before it, is now charging online content providers a fee to get their services exempted from customers' data caps.
With Verizon's "FreeBee Data 360," content providers are billed for each gigabyte they serve to consumers, while the consumers can access the providers' services without using up their data allotments.
"Content providers can sponsor specific consumer actions on a per-click basis, free of data charges for subscribers—including mobile video clips, audio streaming, and app downloads," Verizon said today. Data used for advertisements can also be sponsored by the company delivering the ad.
AT&T has been selling sponsored data under a similar scheme since January 2014. T-Mobile USA has been exempting certain video and music services from its caps, but it isn't charging content providers for the exemptions.
Data cap exemptions are controversial because they put services without the exemptions at a disadvantage. The Federal Communications Commission's net neutrality rules don't specifically outlaw data caps or data cap exemptions, but the FCC evaluates on a case-by-case basis whether specific implementations harm consumers or businesses. The FCC has been holding meetings with companies that implement data cap exemptions (also known as zero-rating), but it hasn't taken any action against them.
FreeBee will place a picture of a bee (seen at right) next to sponsored content to let subscribers know they can click it without using data.
Businesses can apparently sponsor the data for just about anything. "With FreeBee Data 360, businesses can sponsor some or all of their app or website," Verizon said.
Verizon said the service will start January 25 with beta trials involving Hearst Magazines, AOL (which is owned by Verizon), and Lantern Software's GameDay sponsoring mobile content for 1,000 test subscribers. While full commercial availability is expected to happen sometime later this year, Verizon said that "other brands are welcome to participate in the trial."
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