U.S. regulators throttle Verizon over data-throttling plan
Source: Nicole Arce
The Federal Communications Commission is openly challenging Verizon's plan to throttle data connections for customers subscribed to its older unlimited data plans.
Earlier this week, Verizon announced that it will impose restrictions for certain 4G customers, specifically those in the top 5 percent of users who have fulfilled their minimum contractual obligations for the unlimited data plans, which Verizon has stopped offering to its newer customers.
In an open letter sent to Daniel Mead, Verizon president and chief executive, FCC Chairman Tom Wheeler stated that he was "deeply troubled" by Verizon's announcement that it will slow data speeds for certain customers beginning in October.
"It is disturbing to me that Verizon Wireless would base its 'network management' on distinction among its customers' data plans, rather than on network architecture or technology," writes (pdf) Wheeler in his letter. "I know of no past Commission statement that would treat as 'reasonable network management' a decision to slow traffic to a user who has paid, after all, for 'unlimited' service."
The FCC defines reasonable network management as serving a legitimate purpose, such as ensuring the security and integrity of the network, managing traffic that is unwanted by end-users, and mitigating network congestion. Verizon's decision, Wheeler implies, has nothing to do with the technical management of its network but is more a ploy to increase revenue streams for the company.
"It's important to remember that the vast majority of data customers will not see any impact from Verizon Wireless' Network Optimization policy, and will be able to browse the Internet, stream music and videos, upload pictures and send emails as they always have," writes Verizon in a blog post.
The practice of slowing Internet speeds for customers who consume more data than the majority has actually become a standard industry practice. A look at Sprint and AT&T's policies will show that the country's top mobile carriers have reserved for themselves the right to reduce speeds for unlimited data plan customers who go over 5 GB of usage. T-Mobile, which brands itself as an un-carrier, also does the same, although a spokesperson for the company says it does not engage in throttling, but it does "manage infrequent network congestion issues through prioritization of customer traffic."
For Wheeler, who has been pushing a second set of net neutrality rules for approval after the first set was struck down by the court, the letter is another push toward his attempt to establish himself as a defender of consumer interest. Advocates have been increasingly calling for the re-classification of Internet service providers such as Verizon as utility providers, a move that will give the FCC more authority to regulate ISPs.
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