Evaluating Zero Rating: A Comparative Analysis of four South American Countries

Abstract

Zero-rating refers to the practice of mobile network operators in which data consumed in privileged applications is not counted against a subscriber's Internet data allowance. The network neutrality debate has recently focused on the growing popularity of zero-rating in mobile networks. While in South America, some network neutrality laws have zero-rating limitations, these are not absolute and have become very popular among mobile operators and attractive for users. However, some researchers highlight that the practice could violate users’ rights and network neutrality principles, while others argue that it allows users to access the Internet at a lower cost. This article analyzes the zero-rating offerings in Brazil, Colombia, Chile, and Ecuador using a political-economic and developmental approach through contextualization to identify and assess potential effects on access, competition, use, and affordability. The results reveal complex relationships and positive and negative effects, depending on the case, where zero-rating could be partially positive for digital inclusion in Ecuador and Colombia but not for Brazil and Chile.