The U.S. Federal Communications Commission (FCC) warned AT&T that they are ready to step in if its Sponsored Data Plan affects the market competition or interferes with Internet access.
At the Consumer Electronics Show (CES) in Las Vegas, FCC Commissioners expressed unwillingness to pass judgment on the telecommunication corporation's sponsored data plan without visualizing how it works. However, FCC chairperson Tom Wheeler said that they have the power to intervene if the program tends to stifle or obstruct customer's abilities to access the Internet.
"Make no mistake, we're ready to intervene," Mr. Wheeler announced at CES. "We want to encourage innovation, with the full capability and legal authority to intervene in those circumstances where there are untoward impacts on competition and consumers."
AT&T unveiled the Sponsored Data plan early this year which allows subscribers to use mobile content and apps within the network without additional costs on their monthly wireless data plan. The additional charges will be shouldered by the Sponsoring companies.
"Customers love mobile content. Whether it's shopping, banking, entertainment or personal wellness, mobile content is increasingly available for customers almost anywhere and anytime. And that's what makes this a win-win for customers and businesses - customers just look for the Sponsored Data icon and they know the data related to that particular application or video is provided as a part of their monthly service," said Ralph de la Vega, president and CEO, AT&T Mobility in a press release.
Republicans Ajit Pai and Michael O'Rielly, Democrat Mignon Clyburn, plus other members of the commission declined to support AT&T's program without seeing and knowing its mechanisms.
Mr. Pai told the Wall Street Journal, "The FCC should not be in the business of a priori declaring business models like this out of bounds."
Calif. 18th District Representative Anna Eshoo, along with other advocates of net neutrality, also expressed her disapproval of the sponsored data service.
Eshoo said to WSJ, "The announcement of a sponsored data program by AT&T puts it in the business of picking winners and losers on the Internet, threatening the open Internet, competition and consumer choice."
