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Net Neutrality Could Prove Problematic For Verizon’s Soon To Launch Video Streaming Service

April 1, 2015 - Written By John Anon

Towards the end of last year and start of this year, Net Neutrality was a bit of a big deal. The argument between the two sides was raging and the FCC was summing up their decision on whether to reclassify the service as a ‘Utility’ under Title II legislation. Those for the move, were welcoming the FCC to exert some kind of control over carriers who look to charge different users, different amounts and effectively prioritize a service. While those against, pretty much saw any sort of control or exertion by any government affiliated or singular entity as a negatively impactful move. The beginnings of the controlling of the internet, if you will.

Well, since the FCC voted 3-2 in favor of reclassification, some carriers have been making their objection to the move clear, with recent reports suggesting the appeals are very much en route and due to begin shortly. However, new information seems to be suggesting some carriers may be looking at ways in which they can avoid FCC regulations on mobile internet by employing more creative measures. The report, in particular, focuses on Verizon who is planning to launch their own video service shortly.

Video is considered one of the main ways in which data caps can be quickly reached and breached. From the carrier perspective, if they are so inclined, these breaches can bring in substantial revenues in the way of fines. However, it is being suggested that Verizon may choose to opt for their data content to be exempt from data caps, at least on their network. This, in essence, would be a good move for their customers as it could mean they could stream video without having to worry about incurring any charges. However, where the FCC may have a problem, is that the Verizon will only be exempting their service. Rival services will be still chargeable for overage fees and thus, the move would essentially be pushing customers to use their own service other competitions. According to the report, it is unclear as to whether such a move would be breaking any of the FCC regulations. Although, MoffettNathanson analyst, Craig Moffett was noted commented that the FCC would certainly frown upon such a move, stating that “I think that would be a very provocative move“.