Zero-rating

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Zero-rating is when you can use the Internet for free or at a reduced cost under certain rules. For example, you might be allowed to access only specific apps or websites, or data used by certain apps is not counted against your data limit, sometimes funded by ads.

The idea is often discussed with net neutrality. Many people say zero-rating goes against an open Internet, but some supporters believe it helps more people get online and use more online services.

Big services like Facebook, Google, and others have run zero-rating programs to reach people in developing markets, usually by subsidizing access to their own apps. The results have been mixed: some places adopted these plans, while others saw limited benefits for mobile operators or questions about open access.

Chile’s regulator ruled in 2014 that zero-rating violated net neutrality and ordered it stopped.

In the United States, the FCC did not ban zero-rating outright but has treated it cautiously. Since 2014, T-Mobile has offered Music Freedom, which lets customers use music streaming without counting toward their data cap. In 2015, T-Mobile added video streaming to the same idea. Verizon and AT&T later created sponsored data programs where content providers can pay to keep their content from counting against your monthly data limit. Critics say sponsored data can give an advantage to wealthy content providers and hurt smaller ones, effectively creating toll-free lanes for some services.

Some networks also use similar methods to charge enterprise data differently for employees’ company devices, which can help with bring-your-own-device programs but raises fairness questions.

Education has used zero-rating to improve access. In Colombia, a government platform and a decree aimed to give zero-rated access to education sites with a cap around $20, helping lower-income households.

In India, Facebook offered a zero-rated service starting in 2015, but regulators banned the practice a year later. WhatsApp and other services have faced similar scrutiny when they rely on zero-rating to boost usage.

Many emerging countries allow some zero-rated services, often featuring a few large players like Facebook, WhatsApp, and Twitter. Critics say zero-rating can be anti-competitive and threaten an open Internet by letting big providers steer what people use.

In Europe, regulators have looked at cases under net neutrality rules, including Portugal, with attention from the EU’s framework.

To counter problems, an alternative model called “equal rating” has been explored, where all content is treated the same up to a data cap, avoiding prioritization of certain services.

Studies show zero-rated or hybrid plans are common in Latin America and the Global South, though availability varies. In several countries, Facebook’s Free Basics and WhatsApp have been among the most common zero-rated services.