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Verizon’s ‘Sponsored Data’ Service To Provide Free Mobile Content, Lets Third Parties Foot The Bill

| Dec 11, 2015 06:29 AM EST

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Verizon has announced it has plans to start testing "sponsored data," which is basically a type of 1-800 toll-free calling for wireless customers in the Digital Age. This allows the nationwide carrier's patrons to access content such as a mobile app. It will not affect their data plans and will be paid for by a third party such as the app maker or wireless Internet provider.

Verizon Executive VP Marni Walden said in an interview this week that the telecom can track every byte that the network carries, according to Re/code. It can sponsor all or part of the data.  

Verizon is working with a couple of business partners to test the new sponsored data feature. It will be rolled out for all customers next year, and have an affordable price tag.

For example, Verizon could make a deal with a service such as Spotify. Instead of the company's music streaming being counted against the wireless customer's monthly data cap, Spotify would foot the bill, according to PC Mag.  

AT&T has been developing and testing a toll-free data feature for a few years, which it first announced at CES 2014. It reported one year later that the new service was still in its first stages. Meanwhile, its new "data perks" program gives customers a maximum of 1 gigabyte of extra data if they view offers or sign up for trials.  

Some critics argue that toll-free data is unfair because large corporations can cover the costs of data, but smaller companies cannot. They claim it is does not allow net neutrality.

However, the Federal Communications Commission (FCC) does not seem to have any problems with the toll-free data. FCC Chairman Tom Wheeler has argued that such services are very "innovative" and "competitive."

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