Verizon Wireless Vs FCC: Throttled Data Plans Bring ISP Under Fire
Verizon Wireless is trying to justify throttling unlimited data plans, and the FCC is attempting to stop them. Where the communications authority sees nothing but a greedy attempt to milk consumers, the ISP claims the expenses are necessary to cover the costs of network maintenance.
It was recently revealed that Verizon is willingly slowing down the internet speed of customers whose data plans have no caps. Other customers are getting the full speed they’re paying for, and the FCC has a problem with the inequality.
Undoubtedly, Verizon 4G LTE customers feel the same way. The way the plans work under the ISP is that up to a certain number of gigabytes per month, you pay according to a ladder scale. Every two gigabytes are charged the next rate up, with 20 gigabytes per month jumping into monthly charges that rival some automobile insurance rates at $130 per month after fees. If you use even a kilobyte over your monthly allowance on these plans, you pay an additional $15 per gigabyte.
Some Verizon Wireless 4G LTE customers opt instead to use an unlimited data plan for a single line cell phone at $60 a month. This seems reasonable, except for the fact that Verizon apparently won’t let you use full data speeds on that plan if you use it to watch a lot of high definition video on a tablet device or smartphone, starting in October.
It looks like Verizon is trying to persuade their customers to switch to the usual limited data plans, and the FCC has noticed and could take further action to stop the ISP from continuing this practice.
The official statement about this throttling practice for more demanding data users is explained on Verizon’s website:
“They may experience slower data speeds when using certain high bandwidth applications, such as streaming high-definition video or during real-time, online gaming, and only when connecting to a cell site when it is experiencing heavy demand.”
The FCC is calling nonsense on this explanation, stating that the costs to maintain the network in any situation are so minimal that Verizon Wireless is simply robbing their users and trying to justify the profits. They are now asking the ISP to explain the numbers and prove their point before the new plan to throttle the top five percent of 4G LTE users goes into effect in October.
FCC to Verizon: Throttle this! http://t.co/oMd3VSF98f via @jtotoole pic.twitter.com/oInuExI2Yw
— CNN Tech (@cnntech) July 31, 2014
FCC chairman Tom Wheeler‘s official letter to Verizon CEO Daniel Mead can be read by clicking here.
While their network is still the fastest, most wide-reaching and versatile in the U.S., Verizon Wireless could be in trouble for attempting to grab even more money from its most demanding consumers.
[image via pasoroblesdailynews, moneysigns]
