AT&T launches “Sponsored Data” service to subscribers and businesses

As reported by the Financial Times earlier today AT&T plans to become the first major mobile operator in the U.S., which aims to allow companies to offer sponsored content and other free services to its subscribers. This is a strategic move, which is expected to be challenging to wireless “net neutrality” rules.

The President of the companys Mobility department – Ralph de la Vega – made an announcement about the initiative at the companys developers conference in Last Vegas, which coincided with the annual Consumer Electronics Show. This move is expected to bring benefit to consumers as well as to the companies, which sign up for AT&Ts “sponsored data” plan.

This will provide businesses with the opportunity to pay for a customer’s wireless data, associated with the delivery of sponsored content or application. The new service of the company is called Sponsored Data and works on the principle of a freephone or 1-800 number.

The move comes at a time when carriers such as AT&T and Verizon Wireless are facing the fact that cellphone bills consume a larger and also constantly growing share of household budgets. Three companies have signed up to participate in the Sponsored Data service for now – UnitedHealth Group Inc., Aquto Corp. and Kony Inc.

Still, AT&T refused to disclose the financial terms of the agreements, but it announced that the company is currently negotiating with several other companies. The partnerships are expected to be officially announced by the end of March. The senior vice president of AT&Ts data and voice products – Mark Collins, said: “The possibilities are endless based on the type of companies and the type of commercial relationships theyd like to strike with us.”

However, some consumer advocates and lawmakers, such as Anna Eshoo, who is a member of the House Communications and Technology Subcommittee, feel most concerned by this move of AT&T. Here is how she commented the issue: “The announcement of a sponsored data programme by AT&T puts it in the business of picking winners and losers on the Internet, threatening the open Internet, competition and consumer choice. Its exactly why net neutrality rules came to exist in the first place and why these rules should apply equally to all forms of broadband Internet service.”

According to CNN Money, the current share price of AT&T Inc. is 0.46% up, and its one-year return rate is 0.57% down. The 21 analysts offering 12-month price forecasts for AT&T Inc. have a median target of 38.00, with a high estimate of 42.00 and a low estimate of 35.00. The median estimate represents a 8.70% increase from the last price of 34.96.