AT&T Introduces 'Sponsored Data' to Allow Businesses to Cover Cost of Mobile Data Downloads
AT&T today announced a new Sponsored Data program to allow its customers to download content or apps over cellular data, with businesses picking up the cost of the data -- that is, downloads won't affect the users' monthly wireless data plan allotment.
The system, which works similarly to toll-free 800-numbers, was originally rumored nearly two years ago.
According to AT&T, the service will allow companies to sponsor data use across a number of industries including healthcare, retail, media and entertainment, and financial services, and giving a number of possible use cases in its press release announcing the program:
- Encouraging customers to try a new smartphone or tablet app.
- Promoting movie trailers or games.
- Providing patient healthcare support via wellness videos.
- Encouraging customers to browse mobile shopping sites.
- Allowing businesses with ‘Bring Your Own Device’ policies to pay for the data employees use for specific business-related apps and services.
- Enhancing customer loyalty programs by providing sponsored data access to products and services.
For users, the program will be nearly invisible, with post-paid customers receiving automatic access to Sponsored Data when on AT&T's domestic wireless network. Prepaid customers will not be able to use the Sponsored Data program.
U.S. cellular carriers have been in something of a marketing war in recent months, particularly between T-Mobile and AT&T. Recently, AT&T began a new promotion to offer up to $450 in credits to customers that switch to it from T-Mobile.
The new sponsored data program, if widely adopted, could reduce user concerns over data usage, particularly after AT&T has moved aggressively to wean customers off of its unlimited data plans.
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Top Rated Comments
Absolutely. How long before they start selling off prioritised traffic, so every other business that isn't paying AT&T suddenly becomes slower?
This is the beginning of the end. They start with seemingly-innocent things like this, but then there's going to be pressure to get more companies on board in order to boost revenue, and that's when it's going to get ugly.
If they want to charge for something, charge for levels of throttling.