March 18, 2021
AT&T quietly announced it would begin capping data use for its wireless subscribers — a move that would affect some HBO Max subs from unlimited streaming. The telecom cited recent legislative action California supporting statewide net neutrality for the decision.
“California has enacted a ‘net neutrality’ law banning ‘sponsored data’ services that allowed companies to pay for, or ‘sponsor,’ the data usage of their customers who are also AT&T wireless customers,” the company wrote in a blog post. “Unfortunately, under the California law we are now prohibited from providing certain data features to consumers free of charge.”
After President Trump’s FCC rescinded a federal net neutrality law that treated the Internet as a utility prohibiting ISPs from charging for higher bandwidth and streaming speeds, California, among other states, enacted its own net neutrality law. A federal judge last month upheld the move.
Prior to California’s law, AT&T said sponsored data subscribers were able to browse stream apps (i.e. HBO Max) from devices without using their monthly data allowance. The telecom said video providers utilized sponsored data enabling subscribers to stream movies and TV shows over their wireless service without it counting against their wireless data plan.
“Since it began, our sponsored data service, and competing offers from other wireless providers, have delivered significant benefits and saved consumers money,” AT&T wrote. “Consumers also have enjoyed an explosion of video streaming services.”
AT&T said the Internet does not recognize state borders, and thus the new law not only ends its ability to offer California customers free data services, but also similarly impacts customers nationwide.
AT&T is calling Congress to adopt federal legislation that would provide “clear, consistent and permanent” net neutrality rules for everyone to follow.
“A state-by-state approach to ‘net neutrality’ is unworkable,” wrote the telecom. “A patchwork of state regulations, many of them overly restrictive, creates roadblocks to creative and pro-consumer solutions. We have long been committed to the principles of an open internet. We deliver the content and services our customers want because it’s what they demand, not because it’s mandated by regulation.”