{{short description|Internet access under certain conditions}} {{Update|date=April 2024|reason=Net neutrality is back}} [[File:+ Smart Net - advertisement offering service packages.png|thumb|Portuguese company MEO gives zero-rated access to their own service "MEO cloud". Even though it does not provide unlimited mobile data, it offers packages to give zero-rated access to other applications and services. Contrary to popular belief it does not prevent the usage of those applications while using the regular unused data, but instead offers packages where applications and services within the package are not counted towards the data consumed.]]
'''Zero-rating''' is the practice of providing Internet access without financial cost under certain conditions, such as by permitting access to only certain websites or by subsidizing the service with advertising or by exempting certain websites from the data allowance.<ref name=":2033">{{Cite web|url=https://cerre.eu/sites/cerre/files/CERRE_ZeroRating_FinalReport_0.pdf|title=Jan Krämer, Martin Peitz: A fresh look at zero rating|website=www.cerre.eu|language=en-US|access-date=2019-12-10|archive-date=2019-12-10|archive-url=https://web.archive.org/web/20191210091007/https://cerre.eu/sites/cerre/files/CERRE_ZeroRating_FinalReport_0.pdf|url-status=dead}}</ref><ref name="Berkman Oct 2017">{{cite web|last1=Bates|first1=Samantha|last2=Bavitz|first2=Christopher|last3=Hessekiel|first3=Kira|title=Zero Rating & Internet Adoption|url=https://cyber.harvard.edu/publications/2017/10/zerorating|website=cyber.harvard.edu|publisher=Berkman Klein Center for Internet & Society|language=en|date=5 October 2017|access-date=13 December 2017|archive-date=8 December 2017|archive-url=https://web.archive.org/web/20171208221600/https://cyber.harvard.edu/publications/2017/10/zerorating|url-status=live}}</ref>
Commentators discussing zero-rating present it often in the context of net neutrality.<ref name="Berkman Oct 2017" /> While most sources report that use of zero-rating is contrary to the principle of net neutrality, there are mixed opinions among advocates of net neutrality about the extent to which people can benefit from zero-rating programs while retaining net neutrality protections.<ref name="Berkman Oct 2017" /> Supporters of zero-rating argue that it enables consumers to make choices to access more data and leads to more people using online services, but critics believe zero-rating exploits the poor, creates opportunities for censorship, and disrupts the free market.<ref name="Berkman Oct 2017" />
== Existing programs == Internet services like Facebook, Wikipedia and Google have built special programs to use zero-rating as means to provide their service more broadly into developing markets. The benefit for these new customers, who will mostly have to rely on mobile networks to connect to the Internet, would be a subsidised access to services from these service providers. The results of these efforts have been mixed, with adoption in a number of markets, sometimes overestimated expectations and perceived lack of benefits for mobile network operators. In Chile, the national telecom regulator ruled that this practice violated net neutrality laws and had to end by June 1, 2014.<ref>{{cite web |url = http://techpresident.com/news/wegov/25090/face-chile-net-neutrality-v-human-right-facebook-wikipedia |title = Face Off in Chile: Net Neutrality v. Human Right to Facebook & Wikipedia |last = McKenzie |first = Jessica |date = June 2, 2014 |access-date = July 2, 2014 |archive-date = July 5, 2014 |archive-url = https://web.archive.org/web/20140705155029/http://techpresident.com/news/wegov/25090/face-chile-net-neutrality-v-human-right-facebook-wikipedia |url-status = dead }}</ref> The Federal Communications Commission did not ban zero-rating programs, but it "acknowledged that they could violate the spirit of net neutrality".<ref>{{Cite web | url = http://www.mercurynews.com/business/ci_29482688/wolverton-battle-net-neutrality-isnt-over | title = Wolverton: Battle for net neutrality isn't over | website = www.mercurynews.com | date = 5 February 2016 | access-date = 2016-02-29 | archive-date = 2016-03-05 | archive-url = https://web.archive.org/web/20160305205526/http://www.mercurynews.com/business/ci_29482688/wolverton-battle-net-neutrality-isnt-over | url-status = live }}</ref>
Since June 2014, U.S. mobile provider T-Mobile US has offered zero-rated access to participating music streaming services to its mobile internet customers. T-Mobile US launched its plan called “Music Freedom” which would exempt users of T-Mobile US from having to pay premium prices for access to music content; additionally, this content access would not count as part of an individual's cap, which is the limit they can reach before they are charged for data.<ref>{{Cite news|url=https://www.theverge.com/2014/6/18/5822996/t-mobile-music-freedom-net-neutrality|title=T-Mobile's 'Music Freedom' is a great feature — and a huge problem|last=Ziegler|first=Chris|date=June 18, 2014|work=The Verge|access-date=2018-05-30|archive-date=2018-05-19|archive-url=https://web.archive.org/web/20180519005914/https://www.theverge.com/2014/6/18/5822996/t-mobile-music-freedom-net-neutrality|url-status=live}}</ref><ref>{{cite web |title=T-Mobile's latest 'Un-carrier' feature: Rhapsody Unradio, an odd streaming music service. |url=https://www.theverge.com/2014/6/18/5819804/t-mobile-unradio-rhapsody-free-internet-radio-service |access-date=June 19, 2014 |date=June 18, 2014 |archive-date=June 19, 2014 |archive-url=https://web.archive.org/web/20140619132425/http://www.theverge.com/2014/6/18/5819804/t-mobile-unradio-rhapsody-free-internet-radio-service |url-status=live }}</ref> In November 2015, T-Mobile US expanded zero-rated access to video streaming services.<ref>{{cite web |title=T-Mobile Stops Counting Netflix, HBO, Hulu, And Other Video Streams Against Your Data Usage |url=https://techcrunch.com/2015/11/10/t-mobile-stops-counting-netflix-hbo-hulu-and-other-video-streams-against-your-data-usage |access-date=December 30, 2015 |date=November 10, 2015 |archive-date=December 29, 2015 |archive-url=https://web.archive.org/web/20151229010503/http://techcrunch.com/2015/11/10/t-mobile-stops-counting-netflix-hbo-hulu-and-other-video-streams-against-your-data-usage/ |url-status=live }}</ref>
In January 2016, Verizon joined AT&T by creating its own sponsored data program, FreeBee Data, which "enables content providers to pay a wireless provider to allow its subscribers to engage with or consume a piece of content without it counting against the customers' monthly allotments".<ref>{{Cite web | url = http://www.fool.com/investing/general/2016/01/21/verizon-joins-att-in-this-controversial-net-neutra.aspx | title = Verizon Joins AT&T in This Controversial Net Neutrality Practice -- The Motley Fool | last = Tonner | first = Andrew | website = The Motley Fool | date = 21 January 2016 | access-date = 2016-02-29 | archive-date = 2016-02-23 | archive-url = https://web.archive.org/web/20160223213129/http://www.fool.com/investing/general/2016/01/21/verizon-joins-att-in-this-controversial-net-neutra.aspx | url-status = live }}</ref> Sponsored data on behalf of content providers through AT&T or Verizon covers the costs for the viewers and attracts more consumers. Some people have characterized this as ISPs having created a toll-free service for online users.
Advocates of net neutrality state that sponsored data "allows well-heeled content providers to pay for placement to the disadvantage of smaller companies that can't afford the same luxury".<ref>{{Cite web | url = http://www.fool.com/investing/general/2016/01/21/verizon-joins-att-in-this-controversial-net-neutra.aspx | title = Verizon Joins AT&T in This Controversial Net Neutrality Practice – The Motley Fool | last = Tonner | first = Andrew | website = The Motley Fool | date = 21 January 2016 | access-date = 2016-02-29 | archive-date = 2016-02-23 | archive-url = https://web.archive.org/web/20160223213129/http://www.fool.com/investing/general/2016/01/21/verizon-joins-att-in-this-controversial-net-neutra.aspx | url-status = live }}</ref> Verizon's FreeBee Data program which allows its own customers to access certain content, like ESPN and its video streaming service, for free along with any other relevant app access and the data will not count against their monthly caps. In this way, big ISPs discriminate against data and content from those who do not pay to have their content included in the FreeBee or other sponsored programs.
Similarly, mobile network operators are also able to use the underlying classification technology like deep packet inspection to redirect enterprise-related data charges for employees using their private tablets or smartphones to their employer.<ref name="Fitchard1">{{cite web |url = http://gigaom.com/2014/01/06/att-launches-sponsored-data-inviting-content-providers-to-pay-consumers-mobile-data-bills/ |title = AT&T launches "Sponsored Data," inviting content providers to pay consumers' mobile data bills |publisher = Gigaom |last = Fitchard |first = Kevin |date = January 6, 2014 |access-date = July 3, 2014 |archive-date = January 28, 2021 |archive-url = https://web.archive.org/web/20210128084104/https://gigaom.com/2014/01/06/att-launches-sponsored-data-inviting-content-providers-to-pay-consumers-mobile-data-bills/ |url-status = dead }}</ref> This has the benefit of Toll-free / zero-rated applications allowing employees to participate in ''bring your own device (BYOD)'' programs.
In education, and as a response to the closure of school buildings due to the COVID-19 pandemics, Colombian government has created a learning resources platform for mobile phone ([https://movil.colombiaaprende.edu.co/ movil.colombiaaprende]) and "published a decree requesting mobile operators to provide zero-rating conditions for access to specific education services and websites (both voice and data). The government reached an agreement with mobile and Internet operators ensuring all inhabitants have access to educational content and guidelines, in particular lower income households, with a cap at about USD 20."<ref>{{Cite web|title=OECD-EI Report – Effective and Equitable Educational Recovery – 10 Principles, 28 April 2021 – OECD|url=https://www.oecd.org/about/secretary-general/oecd-sg-at-launch-of-oecd-ei-report-28-april-2021.htm|access-date=2021-05-16|website=www.oecd.org|archive-date=2021-05-16|archive-url=https://web.archive.org/web/20210516151049/https://www.oecd.org/about/secretary-general/oecd-sg-at-launch-of-oecd-ei-report-28-april-2021.htm|url-status=live}}</ref>
=== WhatsApp and Facebook cases === {{See also|WhatsApp|Facebook Platform}} Starting 2015, Facebook was zero-rated in India. A year after, the local regulator forbade that practice.<ref>{{Cite web |last=Banis |first=Davide |title=How 'Zero-Rating' Offers Threaten Net-Neutrality In The Developing World |url=https://www.forbes.com/sites/davidebanis/2019/02/18/how-zero-rating-offers-threaten-net-neutrality-in-the-developing-world/ |access-date=2024-08-05 |website=Forbes |language=en |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://www.forbes.com/sites/davidebanis/2019/02/18/how-zero-rating-offers-threaten-net-neutrality-in-the-developing-world/ |url-status=live }}</ref> The popular application WhatsApp<ref>{{Cite web |title=Facebook, Google & Big Telecoms Want to Keep Violating Net Neutrality in Europe. Regulators Should Stop Them. |url=https://cyberlaw.stanford.edu/blog/2022/05/facebook-google-big-telecoms-want-keep-violating-net-neutrality-europe-regulators |access-date=2024-08-05 |website=cyberlaw.stanford.edu |date=30 May 2022 |language=en |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://cyberlaw.stanford.edu/blog/2022/05/facebook-google-big-telecoms-want-keep-violating-net-neutrality-europe-regulators |url-status=live }}</ref> has been regularly finger-pointed by various journalists, bloggers and observers, to use intensively the zero-rating practice to encourage mobile users, the usage of its application, for no charge or consumption in the subscription-quota. Countries such as Brazil,<ref>{{Cite web |date=2022-01-22 |title=Is Zero-Rating A Threat To Human Rights? |url=https://www.humanrightspulse.com/mastercontentblog/is-zero-rating-a-threat-to-human-rights |access-date=2024-08-05 |website=Human Rights Pulse |language=en-US |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://www.humanrightspulse.com/mastercontentblog/is-zero-rating-a-threat-to-human-rights |url-status=live }}</ref> South Africa,<ref>{{Cite web |date=2023-10-30 |title=Fight looming over zero rating in South Africa - TechCentral |url=https://techcentral.co.za/fight-looming-zero-rating-south-africa/234249/ |access-date=2024-08-05 |language=en-US |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123914/https://techcentral.co.za/fight-looming-zero-rating-south-africa/234249/ |url-status=live }}</ref><ref>{{Cite web |title=Technologie : comment Whatsapp a conquis l'Afrique - Jeune Afrique.com |url=https://www.jeuneafrique.com/339107/economie-entreprises/technologie-whatsapp-a-conquis-lafrique/ |access-date=2024-08-05 |website=JeuneAfrique.com |language=fr-FR |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://www.jeuneafrique.com/339107/economie-entreprises/technologie-whatsapp-a-conquis-lafrique/ |url-status=live }}</ref> Argentina,<ref>{{Cite web |last=Sergio |date=2017-12-05 |title=Whatsapp gratis versus neutralidad en la red |url=https://www.derechoenzapatillas.com/2017/whatsapp-gratis-versus-neutralidad-en-la-red/ |access-date=2024-08-05 |website=Derecho en Zapatillas by Sergio Mohadeb |language=es |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://www.derechoenzapatillas.com/2017/whatsapp-gratis-versus-neutralidad-en-la-red/ |url-status=live }}</ref><ref>{{Cite web |date=2017-11-30 |title=Whastapp gratis para todes ¿y el resto? |url=https://ladob.net/2017/11/30/whastapp-gratis-todes-resto/ |access-date=2024-08-05 |website=LadoB |language=es-AR |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123915/https://ladob.net/2017/11/30/whastapp-gratis-todes-resto/ |url-status=live }}</ref><ref>{{Cite web |title=Telecompaper |url=https://www.telecompaper.com/news/claro-argentina-latest-to-offer-zero-rated-whatsapp--1222356 |access-date=2024-08-05 |website=www.telecompaper.com |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://www.telecompaper.com/news/claro-argentina-latest-to-offer-zero-rated-whatsapp--1222356 |url-status=live }}</ref> Mexico<ref>{{Cite web |title=WhatsApp as 'technology of life': Reframing research agendas |url=https://firstmonday.org/ojs/index.php/fm/article/download/10405/8318 |access-date=2024-08-05 |website=firstmonday.org |archive-date=2024-08-05 |archive-url=https://web.archive.org/web/20240805123913/https://firstmonday.org/ojs/index.php/fm/article/download/10405/8318 |url-status=live }}</ref>{{Clarify|reason=This sentence provider examples of countries without any context for what exactly they are examples of.|date=August 2025}}
In 2017, a long report underlines<ref>{{Cite web |title=GCIG%20no.47_1.pdf -- page 3 |url=https://www.cigionline.org/sites/default/files/documents/GCIG%20no.47_1.pdf |access-date=2024-08-05 |archive-date=2019-04-12 |archive-url=https://web.archive.org/web/20190412062932/https://www.cigionline.org/sites/default/files/documents/GCIG%20no.47_1.pdf |url-status=live }}</ref> that a certain number of emerging countries, or small countries, let the zero-rating for a certain number of services, especially for GAFAM ones, others big companies (Yahoo, Twitter), and smaller ones (including music streaming). Those countries, providing zero-rating, are Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Paraguay, Peru, and Trinidad and Tobago. That reports alerts that a certain trio of services, are systematically present in each country: Facebook, WhatsApp and Twitter.
== Reception and impact ==
Zero-rating certain services, ''fast lanes'' and ''sponsored data'' have been criticised as anti-competitive and limiting open markets.<ref name="Drossos1">{{cite web |url = http://gigaom.com/2014/04/26/forget-fast-lanes-the-real-threat-for-net-neutrality-is-zero-rated-mobile-traffic/ |title = Forget fast lanes. The real threat for net-neutrality is zero-rated content |publisher = Gigaom |last = Drossos |first = Antonios |date = April 26, 2014 |access-date = July 3, 2014 |archive-date = February 12, 2021 |archive-url = https://web.archive.org/web/20210212050624/https://gigaom.com/2014/04/26/forget-fast-lanes-the-real-threat-for-net-neutrality-is-zero-rated-mobile-traffic/ |url-status = dead }}</ref> It enables internet providers to gain a significant advantage in the promotion of in-house services over competing independent companies, especially in data-heavy markets like video-streaming. A service provider, who is offering unlimited access to their service, will naturally seem more favourable to consumers over one where usage is limited. If the first provider is the one restricting access, they are creating a considerable advantage for themselves over their competition, thereby restricting the freedom of the market. As many new internet and content services are launched targeting primarily mobile usage, and further adoption of internet connectivity globally (including broadband in rural areas of developed countries) relies heavily on mobile, zero-rating has also been regarded as a threat to the open internet, which is typically available via fixed line networks with unlimited usage tariffs or flat rates.<ref>{{cite web |url = https://www.theguardian.com/commentisfree/2014/jun/06/government-ruling-net-neutrality-america-europe-mobile |title = A government ruled for net neutrality. Too bad it wasn't your government |last = Gillmor |first = Dan |work = The Guardian |date = June 6, 2014 |access-date = July 25, 2014 |archive-date = July 29, 2014 |archive-url = https://web.archive.org/web/20140729191948/http://www.theguardian.com/commentisfree/2014/jun/06/government-ruling-net-neutrality-america-europe-mobile |url-status = live }}</ref><ref>{{cite web |url = http://www.cnet.com/news/unlimited-video-net-neutrality-binge-on-zero-rating-data-caps/ |title = Can unlimited video really be that bad? |last = Reardon |first = Marguerite |date = February 26, 2016 |access-date = March 10, 2016 |archive-date = March 10, 2016 |archive-url = https://web.archive.org/web/20160310152938/http://www.cnet.com/news/unlimited-video-net-neutrality-binge-on-zero-rating-data-caps/ |url-status = live }}</ref> Facebook and the Wikimedia Foundation have been specifically criticized for their zero-rating programs, to further strengthen incumbent mobile network operators and limit consumer rights to an open internet.<ref>{{cite web |url = https://www.accessnow.org/blog/2014/08/08/wikipedia-zero-and-net-neutrality-wikimedia-turns-its-back-on-the-open |title = Wikipedia Zero and net neutrality: Wikimedia turns its back on the open internet |last = MacDonald |first = Raegan |publisher = access |date = August 8, 2014 |access-date = August 15, 2014 |archive-date = January 4, 2015 |archive-url = https://web.archive.org/web/20150104123623/https://www.accessnow.org/blog/2014/08/08/wikipedia-zero-and-net-neutrality-wikimedia-turns-its-back-on-the-open |url-status = live }}</ref>
The United States has not officially made a decision on the regulation of zero-rating providers; instead, adopting a “wait-and-see” approach to the matter. The FCC has therefore elected to examine on a case-by-case basis under a “general conduct rule” that “prohibits unreasonable interference with end users’ ability to select content and content providers’ ability to reach end users”.<ref>2015 Open Internet Order, supra note 13, at 5666–69 paras. 151–53.</ref> Days before the Trump inauguration, the Obama administration FCC issued a report expressing concerns with T-Mobile, Verizon and AT&T and their sponsored data programs. The FCC's Wireless Telecommunications Bureau found issues in wireless broadband services that vertically integrate their own affiliated programming, along with service providers allowing unaffiliated content providers to sponsor data. The report concluded that vertically affiliated broadband providers that zero-rate affiliated content most likely violate the general conduct rule.<ref>FCC, Wireless Telecommunications Bureau Report: Policy Review of Mobile Broadband Operators’ Sponsored Data Offerings for Zero-Rated Content and Services. Jan. 11, 2017.</ref>
In the EU, specific cases such as those of Portugal were under scrutiny by national and EU regulators as of 2017, following the BEREC regulation on net neutrality.<ref>{{Cite news|author=Andrei Khalip & Agnieszka Flak|url=https://www.reuters.com/article/us-usa-internet-eu-analysis/false-paradise-eu-is-no-haven-of-net-neutrality-say-critics-idUSKBN1E92SC|title=False paradise? EU is no haven of Net neutrality, say critics|date=2017-12-15|work=Reuters|archive-date=2017-12-17|access-date=2017-12-17|archive-url=https://web.archive.org/web/20171217122716/https://www.reuters.com/article/us-usa-internet-eu-analysis/false-paradise-eu-is-no-haven-of-net-neutrality-say-critics-idUSKBN1E92SC|url-status=live}}</ref>
In addition to commercial interests, governments with a cultural agenda may support zero-rating for local content.<ref>{{cite news|last1=Taylor|first1=Kate|title=Is exempting Cancon from data charges the best way to promote it?|url=https://www.theglobeandmail.com/arts/television/is-exempting-canadian-content-from-data-charges-the-best-way-to-promote-it/article34906304/|access-date=6 May 2017|work=The Globe and Mail|date=5 May 2017|archive-date=5 May 2017|archive-url=https://web.archive.org/web/20170505181450/http://www.theglobeandmail.com/arts/television/is-exempting-canadian-content-from-data-charges-the-best-way-to-promote-it/article34906304/|url-status=live}}</ref>
Zero-rating has also been accused by its critics as creating a two-tiered Internet. To address the issues with zero-rating, an alternative model has emerged in the concept of 'equal rating' and is being tested in experiments by Mozilla and Orange in Africa. Equal rating prevents prioritization of one type of content and zero-rates all content up to a specified data cap. In a study published by Chatham House, 15 out of 19 countries researched in Latin America had some kind of hybrid or zero-rated product offered. Some countries in the region had a handful of plans to choose from (across all mobile network operators) while others, such as Colombia, offered as many as 30 pre-paid and 34 post-paid plans.<ref>{{Cite web |last=Galpaya |first=Helani |date=12 April 2019 |title=Zero-rating in Emerging Economies |url=https://www.cigionline.org/sites/default/files/documents/GCIG%20no.47_1.pdf |url-status=live |archive-url=https://web.archive.org/web/20190412062932/https://www.cigionline.org/sites/default/files/documents/GCIG%20no.47_1.pdf |archive-date=12 April 2019 |access-date=28 November 2020 |website=Global Commission on Internet Governance}}</ref>
A study of eight countries in the Global South found that zero-rated data plans exist in every country, although there is a great range in the frequency with which they are offered and actually used in each.<ref>{{Cite web |title=Alliance for Affordable Internet (A4AI). 2015. Models of Mobile Data Services in Developing Countries. Research brief. The Impacts of Emerging Mobile Data Services in Developing Countries. |url=http://a4ai.org/the-impacts-of-emerging-mobiledata-services-in-developing-countries/}}{{Dead link|date=September 2024|bot=InternetArchiveBot|fix-attempted=yes}}</ref> The study looked at the top three to five carriers by market share in Bangladesh, Colombia, Ghana, India, Kenya, Nigeria, Peru and Philippines. Across the 181 plans examined, 13 percent were offering zero-rated services. Another study, covering Ghana, Kenya, Nigeria and South Africa, found Facebook's Free Basics and Wikipedia Zero to be the most commonly zero-rated content.<ref>{{Cite web |last1=Gillwald |first1=Alison |last2=Chair |first2=Chenai |last3=Futter |first3=Ariel |last4=Koranteng |first4=Kweku |last5=Odufuwa |first5=Fola |last6=Walubengo |first6=John |date=12 September 2016 |title=Much Ado About Nothing? Zero Rating in the African Context |url=https://researchictafrica.net/publications/Other_publications/2016_RIA_Zero-Rating_Policy_Paper_-_Much_ado_about_nothing.pdf |url-status=live |archive-url=https://web.archive.org/web/20201216150858/https://researchictafrica.net/publications/Other_publications/2016_RIA_Zero-Rating_Policy_Paper_-_Much_ado_about_nothing.pdf |archive-date=16 December 2020 |access-date=28 November 2020 |website=Researchictafrica}}</ref>
== See also == * Zero-rated supply (economics) * Facebook Zero * Wikipedia Zero * Google Free Zone * Deep packet inspection (DPI) * Multichannel video programming distributor (MVPD)
== References == {{Reflist|30em}}
Category:Wireless networking Category:Pricing Category:Monopoly (economics) Category:Net neutrality Category:Internet access