Since when are content providers subsidizing consumer broadband?
Tim Sylvester
1

Well, you have AT&T’s Sponsored Data initiative, its merger attempt with Time Warner, and its zero-rating of DirecTV Now (content!), but that’s on wireless, where we’re still talking about paying dollars per gigabyte. Because when folks price shop the access component of their service, you gotta figure some “innovative business model” to charge them some other way, right?

As an aside, advertisers were to be one of the big customers of Sponsored Data.

On wireline there’s no good example because, last I checked, it’s illegal. Title II maybe? But around 2010 both Comcast and Verizon strongarmed Netflix into paid peering (at above-market rates, as I recall) because, well, in some cases Comcast and Verizon were your only ISP options. In others, what are you going to do, use the DSL provider that’s one-quarter the nominal speed?

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