Wednesday, May 4, 2016

Telia Sweden to Zero Rate Social Media Apps

Telia Sweden will zero rate mobile social apps such as Facebook, Instagram, Messenger, WhatsApp, Twitter and Kik.

In other words, data used on social networks will not debit the customer's mobile data usage allowance.

Though it often is the case that upstart service providers challenge leaders by launching disruptive attacks, in this case market share leader Telia intends to boost its leadership in a competitive market featuring four leading providers.

There are no financial relationships between Telia and the social network companies (nobody is being paid for “special” rights of access).

There is another new angle, though. The “no incremental cost” usage also comes with the obligation to follow “anti-bullying rules,” which some would say is a good thing to encourage.

The move predictably will outrage some network neutrality advocates, but please others who argue zero rating is both a permissible form of innovation and differentiation, plus a pro-consumer policy that enables people to use at least some Internet apps at no incremental charge, while whetting appetite for use of other Internet-delivered apps.

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