Verizon calls off controversial throttling plans at the last minute

[Shawn Knight]

Verizon’s controversial decision to throttle customers on unlimited data plans under certain scenarios has been called off at the very last moment. The practice, referred to by the carrier as “network optimization,” was scheduled to go into effect on October 1.

In a statement on the matter, Verizon said they’ve valued the ongoing dialogue over the past several months regarding the policy and have decided not to move forward with it.

If you recall, the planned policy first captured headlines in July when the carrier sent notices to customers on grandfathered unlimited plans. Had it been put into effect, unlimited data customers that consumed 4.7GB of data per month or more and have fulfilled their minimum contract term would have seen their speeds drop when connected to a cell site that was experiencing high demand.

As Gigaom points out, Verizon was pretty much going to prioritize customers who buy their data by the gigabyte over those still on unlimited plans. Considering that more than 20 percent of Verizon data customers are still grandfathered into unlimited plans, that would have pissed off a significant number of users.

Given the fiercely competitive wireless landscape in the US today, the last thing you want to do is give loyal customers a good reason to switch to a rival carrier. Even the FCC weighed in on the issue which may have influenced Verizon’s decision reverse course.

Permalink to story.

https://www.techspot.com/news/58273-verizon-calls-off-controversial-throttling-plans-at-the-last-minute.html

 

[cmbjive]

"Considering that more than 20 percent of Verizon data customers are still grandfathered into unlimited plans, that would have pissed off a significant number of users."

This makes the assumption that all of the customers decided to keep the unlimited plan because they didn't want to be swept into a capped data plan. I'm willing to bet a sizable number of that 20% of customers are people who don't switch their plans because they don't want to be tied into a contract and either buy their phone outright or has somehow made their old phone work for a very long time.

At some point reality will begin to set in for people who think that the Internet is "free".

 

[RustyTech]

At some point reality will begin to set in for people who think that the Internet is "free".

What!? Are you saying there are people who are living in a fantasy world and their internet is free? Cuz I'd like to join them! I have unlimited, but it's not free...I'm still paying a monthly rate for it!

 

[wiyosaya]

"Considering that more than 20 percent of Verizon data customers are still grandfathered into unlimited plans, that would have pissed off a significant number of users."

This makes the assumption that all of the customers decided to keep the unlimited plan because they didn't want to be swept into a capped data plan. I'm willing to bet a sizable number of that 20% of customers are people who don't switch their plans because they don't want to be tied into a contract and either buy their phone outright or has somehow made their old phone work for a very long time.

At some point reality will begin to set in for people who think that the Internet is "free".

As I see it, either you work in upper management for a data carrier or you are unaware of just what lengths marketing departments will go to to make a bigger profit.

As I see it, "network optimization," is a phrase that the marketing department spent time in developing to make it sound like Verizon has some sort of artificial limitation on their bandwidth when in reality, they are trying to find a way to charge those users who still have unlimited plans more money based on their data usage. Companies like Verizon will do everything they can to convince you that their service is worth much more than what you are paying for it. Its pure marketing blather. If it were not legal, it would be called extortion.

 

[cmbjive]

As I see it, either you work in upper management for a data carrier or you are unaware of just what lengths marketing departments will go to to make a bigger profit.

As I see it, "network optimization," is a phrase that the marketing department spent time in developing to make it sound like Verizon has some sort of artificial limitation on their bandwidth when in reality, they are trying to find a way to charge those users who still have unlimited plans more money based on their data usage. Companies like Verizon will do everything they can to convince you that their service is worth much more than what you are paying for it. Its pure marketing blather. If it were not legal, it would be called extortion.

I used to work for VZW, but not in any executive or upper management setting.

And making profits is the point of a corporation. Why you seem to think that is wrong is what is baffling.

That said, VZW could call their service happy-go-lucky-flying-unicorns-on-the-way-to-Wonderland, it's their product. And there is a limitation on bandwidth: It's called the infrastructure that delivers that bandwidth and the size of the population that uses it. I have always stated that the big problem that the telcos had created was giving consumers the "illusion" that internet bandwidth is unlimited. Now they are realizing that there is no such thing as "unlimited" and that there are limitations to how much bandwidth can be provided at any given point in time.

The original "convincing" that the telcos did for consumers was to tell them that their product was "unlimited", which is why many of those same telcos are trying to keep that fiction alive as a marketing gimmick (this is also popular amongst the CLECs like Boost and Virgin). You're right, it is pure marketing blather, but it is not extortion. None of the telcos forces you to buy their product and you are very much free to never use their network. But, then, isn't it your choice that you find their service to be valuable?

 

[ComputerGeekRH]

This is great news for Verizon unlimited users. Unfortunately I have AT&T and I am being throttled.
There is a difference between 'Unlimited Data' and 'Bandwidth'. Throttling speed (limiting bandwidth) just because I have an unlimited plan is not fair. I can be standing next to another cell user and watching the same video on Netflix... I keep buffering and they do not because they are limiting my bandwidth (speed) and not the person next to me. Is that fair?
All customers are paying for the same service and that should mean quality of service. The cell carriers are just upset because they are not getting more money for those users that exceed the total monthly data used on their newer plans.
Unlimited users are NOT slowing down everyone else, they just might be using more data per month without paying overage fees or buying higher priced data plans. Keep in mind that unlimited users are typically paying a much higher price to keep their unlimited plans which could be equivalent to the amount of data they use on a newer plan.
Granted, there are some that might use extreme amounts of data per month but from what I've read, that is less than 5% of unlimited customers.
Cell carriers would like non-unlimited users to think the unlimited users are taking away from their experience. They are using one customer group against the other. This is not true and the only thing that unlimited users are affecting is adding more money to the pockets of greedy corporate millionaires.

 

[Evernessince]

As I see it, either you work in upper management for a data carrier or you are unaware of just what lengths marketing departments will go to to make a bigger profit.

As I see it, "network optimization," is a phrase that the marketing department spent time in developing to make it sound like Verizon has some sort of artificial limitation on their bandwidth when in reality, they are trying to find a way to charge those users who still have unlimited plans more money based on their data usage. Companies like Verizon will do everything they can to convince you that their service is worth much more than what you are paying for it. Its pure marketing blather. If it were not legal, it would be called extortion.

I used to work for VZW, but not in any executive or upper management setting.

And making profits is the point of a corporation. Why you seem to think that is wrong is what is baffling.

That said, VZW could call their service happy-go-lucky-flying-unicorns-on-the-way-to-Wonderland, it's their product. And there is a limitation on bandwidth: It's called the infrastructure that delivers that bandwidth and the size of the population that uses it. I have always stated that the big problem that the telcos had created was giving consumers the "illusion" that internet bandwidth is unlimited. Now they are realizing that there is no such thing as "unlimited" and that there are limitations to how much bandwidth can be provided at any given point in time.

The original "convincing" that the telcos did for consumers was to tell them that their product was "unlimited", which is why many of those same telcos are trying to keep that fiction alive as a marketing gimmick (this is also popular amongst the CLECs like Boost and Virgin). You're right, it is pure marketing blather, but it is not extortion. None of the telcos forces you to buy their product and you are very much free to never use their network. But, then, isn't it your choice that you find their service to be valuable?

Why do people feel the need to defend **** behavior that companies like comcast and verizon commit. Yes corporations need to make money, this argument is so tired yet true (in some respects). This does not mean they are outside the law or morals of society. Corps do not get a free pass to piss on anything and everyone.

Here's whats going on -

Verizon wants more money. They do this by throttling 20% of their lower paying customers (effectively slow lane). In the end, the only people who are going to see a difference and those being throttled. For verizon, they now get to offer "faster" plans at a higher price while also saving on spending a dime to improve their network. They'll just wait until the government gives them some money to do that.

 

[cmbjive]

Why do people feel the need to defend **** behavior that companies like comcast and verizon commit. Yes corporations need to make money, this argument is so tired yet true (in some respects). This does not mean they are outside the law or morals of society. Corps do not get a free pass to piss on anything and everyone.

Here's whats going on -

Verizon wants more money. They do this by throttling 20% of their lower paying customers (effectively slow lane). In the end, the only people who are going to see a difference and those being throttled. For verizon, they now get to offer "faster" plans at a higher price while also saving on spending a dime to improve their network. They'll just wait until the government gives them some money to do that.

For the exact same reason people feel the need to berate companies for wanting to make money. In addition, there is nothing remotely immoral or illegal about asking people to pay more. Is it immoral that the federal government continuously asks you to pay more in taxes (it's definitely legal for them to ask for more money, but legality and morality are not synonymous)? Or, is it immoral for people who don't want to pay more to consume the same amount as those who are willing to pay more?

And if VZW wanted more money they would simply raise their prices. "Throttling" a service in no way would force a person to upgrade their service especially if at higher tiers the service is still throttled.