Bait and Switch: What's Behind AT&T's Stance on FaceTime

AT&T’s decision to block Apple’s video-calling program on its cellular network for certain customers has raised the ire of consumers and public-interest groups, and it may even draw the attention of the Federal Communications Commission. And after the wireless carrier posted its rationale on Wednesday on its decision to limit video over FaceTime to customers who have signed up for its Mobile Shared Data plan, I see two reasons the carrier has picked this fight.

The first is to push more consumers over to the Mobile Shared Data plan, and the second is to establish a precedent that will put its Wi-Fi network on the same legal footing as its cellular one, especially when it comes to network neutrality. Success in the first effort will help AT&T in the near term as it drives people off their grandfathered unlimited plans and tiered plans, while success in the second will give AT&T more wiggle room as it fights the FCC and consumer advocates over network neutrality.