Verizon’s mobile video won’t count against data caps—but Netflix does

Verizon CEO Lowell McAdam. (credit: Fortune Live Media)

Verizon Wireless is testing the limits of the Federal Communications Commission's net neutrality rules after announcing that it will exempt its own video service from mobile data caps—while counting data from competitors such as YouTube and Netflix against customers' caps.

The only way for companies to deliver data to Verizon customers without counting against their data caps is to pay the carrier, something no major rival video service has chosen to do. While data cap exemptions are not specifically outlawed by the FCC's net neutrality rules, the FCC is examining these arrangements to determine whether they should be stopped under the commission's so-called "general conduct standard." The FCC is already looking into data cap exemptions—also known as zero-rating—implemented by Comcast, AT&T, and T-Mobile USA.

Verizon last month announced its new "FreeBee Data 360" program in which content providers can pay to send zero-rated data to customers. Verizon has also been pushing its new "Go90" streaming video service, and yesterday it added a perk to Go90's mobile app: free data.