Zero-rating refers to the practice of exempting certain data traffic from the subscriber’s monthly data caps. In the US, the ISPs have introduced a growing number of services whose data traffic is exempted, such as T-Mobile’s Binge On, which throttles video content from a range of companies to a specific quality but allows users to stream it without it being counted in the overall data usage.
In a letter sent to the FCC, the companies say that giving “ISPs the power to favor some sites or services over others would let ISPs pick winners and losers online”. They argue that this violates the FCC’s Open Internet rules, which seek to guarantee net neutrality.
Currently, FCC examines zero-rating practices “case by case”, while the companies argue that the issue calls for “a broad input and expertise” and call for the agency to launch a more formal and transparent enquiry into the topic.