Verizon Making Plans to Offer Sponsored Data in Q1 2016

Sponsored data comes into limelight again. The largest mobile operator in the US, Verizon is reportedly making plans to test sponsored data in the next few days, following the footsteps of its closest rival AT&T which launched its own version a year ago. Sponsored data, an alternative advertisement and content marketing strategy in the digital content space, allows content providers, publishers and app developers to sponsor the data consumed on their digital content/applications as means to boost their uptake and usage.

Verizon's Executive VP Marni Walden, shared some details on the plan in an interview with Re/code, “We’ll be out in a larger commercial way in the first quarter of 2016. The capabilities we’ve built allow us to break down any byte that is carried across our network and have all or a portion of that sponsored." The operator in its beta sign up page wrote that it is working with various partners, and that if subscribers view content from those partners while on a mobile connection, they will not incur any usage charges.   

AT&T started offering its sponsored data program last year, where it partnered with Syntonic, a provider of sponsored data and connected services. The partnership saw ATT giving away free data on their Freeway service which features both free and premium mobile content. By downloading the Freeway app on an Apple or Samsung device, users can stream all the free content on Freeway without incurring any data charges. Users can also pay for the premium content it offers, but connection charges remain free. 

Besides sponsorship from businesses, Operators worldwide have been offering sponsored data on their own by allowing usage on certain applications such as Whatsapp, not to be counted against subscribers' monthly data allowances, as means to increase the appeal of their data plans. T-Mobile's Music Freedom and BingeOn service are examples of such plans which offer unlimited music and video content respectively for subscribers. 

How does Sponsored Data work? Sponsored Data: How Free Data will Drive Increased Revenues For Operators

The Sponsored Data Whitepaper - Sponsored Data: A Win for Operators, Customers, and Content Providers

Sponsored Data as a featured trend for 2016 - Sponsored Data Will Gain Momentum with Adoption by Carriers Worldwide

Quick Link to all Market Developments in the Sponsored Data space - Here