While jerkwad does make some valid points, this is my concern:
Once Verizon fully integrates this system across their network, I have a feeling that those of us who decide not to pay will see a huge hit in data speeds.
I think "Huge" might be a bit dire, but yes, we might see a few percentages in performance. Granted, this will be determined by many factors: Number of users on a single cell tower, the aggregate bandwidth for all users on the cell tower, the aggregate bandwidth of users on multiple cell towers (it all has to feed back to some common switching/routing infrastructure), etc. Many of the factors have nothing to do with prioritization.
Consider this: Next year EVERYONE is on 4G, there is no prioritization scheme in place, and everyone is doing Netflix over 4G. That is not a sustainable reality for Verizon. There is a limit to what they can support. I already envision better but not optimal speeds on 4G. The more people that go to that network the more congested it will become. As Verizon pushes 4G harder and harder, we can all expect our 4G experience to suffer, albeit still better than 3G speeds. I think it is unrealistic to assume that we will all have a minimum of 8Mbps (or more) at our disposal at any moment in time from a cell phone. Would I be happy with 5Mbps, hell yes. Would I be happy with 3Mbps, sure. Is that 2x as fast as I have now, yep! Am I paying anymore on my data plan for 4G, nope. That's not a bad thing for anyone to have happen, right?
The technology used to prioritize and optimize the network is going to be very important here. I don't think 95% of us are going to notice a thing. Let's face it, how many people actually check their data speeds anyway? According to the android market about 60,000 users (evidenced by the downloads of the two most popular speedtest apps on the market). I've downloaded that thing about 100 times (due to new ROMs, etc). So i'm sure that number is less when you start considering unique users/phones. My point is, speeds will go up for 4G users, no question. But we are all living in a 4G-pipe-dream if we think we will see consistent 8Mbps speeds 24/7/365.24 as 4G becomes mainstream.
Particularly on 4G devices, which I find odd since iPhone users typically, at least as far as AT&T are concerned, are the largest data hogs (ruling out the whole issue of using tethering as your ISP mind you).
I'm not sure what you are saying here...are you saying that as the iPhone enters the 4G LTE realm next year we will be hit even harder because they suck down more data than any other phone manufacturer? I don't disagree that the iPhone prob eats more data, they are probably uploading the users coordinates every 3 seconds and a picture from the camera so that apple can trac....ahh, nevermind ;-) This point goes back to my comment above about expecting HUGE speeds all the time as 4G becomes even more popular.
What this could potentially mean is that while on a 4G connection, we may be pushed down to 3G speeds for some applications, such as Netflix.
I doubt we'll be shoved down to 3G speeds, but we could see less than optimal 4G speeds, i don't disagree. I don't think the small percentage of users paying for "turbo" mode will cause this nearly as much as just the fact that you will have a lot more users on 4G networks in the near future. Time will tell I guess. That being said, expecting to stream HD content to a phone via cellphone data networks, for 2+ hours at a time, is asking a lot when you consider the bazillions of people that Verizon services. I would much rather drop netflix from the conversation and worry about google maps updating quickly or getting my emails and attachments in a timely manner. The rest is fluff and should NOT take priority over essential services. Let's hope that verizon has some provision for prioritizing only certain traffic types by the applications that use them.
At the same time, this could be a potentially good thing if you're in a bind and need to download a couple of gigs worth of data quickly. Is it ideal and fair? No. Then again, when has that been the case with Wireless providers since the outbreak of the smartphone era? Hell, I'm surprised Verizon allowed those of us with a 3G unlimited data plan to be grandfathered into unlimited 4G to be honest.
I wouldn't say this isn't "fair". I would say this isn't "ideal". I agree 100% that in a perfect world we would all get great speeds all the time. However, I'm wide awake, no dreaming here ;-) Verizon HAS done right in enough areas that should not be overlooked. Superior coverage? Yes Good/Great selection of phones? Yep, that too. As you mentioned, the grandfathering of 3G unlimited users to 4G unlimited is amazing. They didn't have to do that, most likely. I lost my unlimited when converting to a Family plan (only for my primary line, wife still has unlimited on hers). Was I happy about it? No way! Do I understand the need for Verizon to do it? Yes, enough to not throw my phone at the Verizon technician, insult her mother and storm out of the store ;-)
I'm not some Verizon wh*re, I just try to stay impartial to balance out the rest of us ;-) lol