ZeroRating

Zero-rating, also called sponsored data or data-free access, is a practice in which internet service providers or mobile network operators exempt certain online services or applications from customers’ data usage. In practice, users can access these services without counting toward their data caps, while other services continue to incur normal charges. The exemption is typically funded by the operator, the content provider, or a partnership between them. Models vary: the operator may zero-rate an app or service for all users, or offer a plan where only certain services are zero-rated.

Supporters say zero-rating can expand access to information and education for users with limited data, promote digital inclusion, and help content providers reach new audiences. Critics argue it violates net neutrality by creating preferential access, can distort consumer choice, and may entrench larger providers while disadvantaging competitors or start-ups that cannot afford subsidies.

Regulatory responses are mixed. Some jurisdictions have prohibited or restricted zero-rating if it discriminates among content. In India, regulators prohibited such practices under net neutrality rules and restricted services like Free Basics. In other regions, regulators have allowed certain forms if there is no discrimination between equivalent services and the policy is transparent and non-exclusionary. In the United States, the regulatory picture has shifted with changes in policy and enforcement over time.

Common implementations include sponsored data programs, where a content provider pays for consumer data, and data-free bundles offered by operators in collaboration with content partners. Zero-rating remains a controversial tool for expanding access while raising concerns about market fairness and competition.