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Carriers want YouTube to pay for your mobile data charges

2012-05-11 10:02 by
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Verizon's CTO Tony Melone announced at the CTIA trade show this week that there is a more than 50-50 chance that carriers will adopt a business model that allows destination services, such as Google or Netflix, to pay for clear access for their customers.

"As we move away from flat rate pricing, there is room for an 1-800-type of service where certain destinations could offset the cost of the network to get customers to those destinations," he said. "There are Net neutrality issues that have to be addressed, too."

However, Melone isn't alone in considering this idea. AT&T said in late February it was working on a service that would allow app developers pay the wireless carrier directly for some of the data used by app consumers. AT&T's John Donovan, the company's senior executive vice president of technology and network operations, compared the service at the time to a toll free number.

According to the carriers, this is just another creative business model for keeping up with growing demand on networks. They also believe new business models could help offset the expense of building the networks to support the growing traffic demands.

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