Verizon Wireless will soon beta test a sponsored service called FreeBee Data 360 that charges content providers for each gigabyte or specific content sent to customers but does not subtract from subscribers' data cap. Its plan follows AT&T's similar service and sponsors per-click actions that include audio streaming, mobile video clips, and app downloads.
The major telecom recently announced its new sponsored service. Companies that create ads can also sponsor data used in advertisements.
Verizon's third-party partners have a couple ways to sponsor content. They can purchase content by the gigabyte, or pay for specific content through a per-click method, according to Android Police.
Verizon's Free Bee Data allows sponsors a maximum of 30 seconds of video streaming on mobile devices, and 30 minutes of audio streaming. That would rule out full-length movies.
FreeBee's sponsored content will be shown by a picture of a bee. It reveals that subscribers can click on the content without a subtraction from their data cap.
Businesses can sponsor any type of data. That includes a portion or all of their mobile app or website.
AT&T has had a similar sponsored data program since January 2014. T-Mobile's Binge On program exempts some video and music services from data caps but does not charge content providers for them.
The Federal Communications Commission's (FCC) net neutrality rules do not make data caps or data cap exemptions illegal, according to Ars Technica. However, data cap exemptions are a hot topic. The FCC has been meeting with companies that provide them because they raise the issue of net neutrality as services without the data cap exemptions are at a disadvantage.
Android Police points out that FreeBee Data will have a few big challenges. They include explaining to mobile customers that the sponsored content will not affect their data cap, and convincing them that clicking on content that will usually be ads and promo apps is totally free.
Verizon will start beta testing of its new service on January 25, Monday with brands such as AOL and GameDay, and 1,000 Verizon subscribers. A commercial version will roll out sometime this year.