LAS VEGAS – Last year was the year sponsored data burst on the scene as Verizon Wireless, AT&T Mobility and T-Mobile US all announced plans to offer free data services. But, it was the launch of T-Mobile US’ controversial “Binge On” service, which allows customers to watch downgraded streaming video without it counting against their data caps, fueling the net neutrality debate over data throttling.
These concerns don’t seem to be hindering companies from jumping in the sponsored data pool. Syntonic is a company staking its future on sponsored data with an app called Freeway, which gives AT&T Mobility customers access to free content with application vendors footing the bill.
Gary Greenbaum, CEO and co-founder of Syntonic, believes sponsored content is here to stay and 2016 will be the year it explodes.
“We really do believe that 2016 is the start of this new revelotion around sponsored data, not only in the United States, but internationally,” Greenbaum told RCR Wireless News in an interview at this year’s CES 2016 event.
Greenbaum sees a future where customers no longer have to count bits and bytes, which he says are difficult to understand, moving instead towards a market where value is measured in content. He believes sponsored data doesn’t even need U.S. regulators to be on board because there is an enormous untapped market overseas where data is often more expensive, forcing customers to watch their data usage carefully.
“We’re focused on a couple key audiences. One is the 60% of the world that can’t afford to be connected today. What sponsored data does provide is the means to reach the unreachables,” Greenbaum explains. “The other segment is the prepay environment; the 70% of the world that … pay as they go and they tend to be very conservative with their use of data because it tends to be expensive in certain parts of the world.”
In addition to these two audiences, Greenbaum says the vastly expanding market for video content, which tends to be an expensive data type, will be another key driver sponsored data revolution. This is the audience that the U.S. carriers are trying to reach.
But what about the regulatory concerns in the U.S. and disputes such as the one between T-Mobile US and Youtube where the semantics of throttling is at the crux of the argument? Youtube claims T-Mobile US’ Binge On service, which allows free access to streaming service such as Netflix, HBO Go and others, throttles its video because it is not a program partner. Greenbaum does not see these as sponsored data issues and he points to the willingness of the carriers to jump in head first as evidence these disputes will be resolved.
“The idea of net neutrality limiting sponsored data has certainly been in the press, but it certainly isn’t stopping AT&T and Verizon and now recently T-Mobile,” Greenbaum said. “There are certain rules of engagement that are spelled out by the ‘Federal Communications Commission” and so long as those are supported, I’m not overly concerned and like I said it’s a big world outside the United States where in other regions this issue isn’t really cropping up.”
Watch the full interview with Syntonic CEO, Gary Greenbaum below.
