California legislation that seeks to end a popular service called zero-rating threatens to raise consumer bills by $360/year.

Posted on August 2, 2018 by - News, Public Policy

That’s why CalAsian Chamber has expressed concerns over SB822 and SB460. Learn more here.

Legislation to ban “zero-rated” free streaming data impacts 3.6 million consumers

A recently released analysis, Benefits to California Consumers from Zero-Rated Data, authored by Dr. David W. Sosa, Ph.D., shows 3.6 million Californians are benefiting today from “zero-rated” free streaming.

 

…these types of zero-rating services disproportionately” impact minority and lower income consumers that “are more reliant on smartphones to access the internet.”

 

Proposed legislation in California, Senate Bill 822, would ban these types of plans. The findings from Dr. Sosa show that a ban on these types of zero-rating services would “disproportionately” impact minority and lower income consumers that “are more reliant on smartphones to access the internet.” Some of these consumers could have to pay $30 per month more.

According to the study, “24% of Asian American Californians with a broadband connection rely exclusively on smartphones and mobile broadband services to access the internet”.

 

Check out what our friends at CalInnovates put together to show the potential impact of SB 822: