Verizon Responds to Getting Called Out by FCC About Throttling LTE Unlimited Data

[dgstorm]

It appears that Big Red's recent move to start throttling some of its 4G LTE customers has caught the attention of the FCC. Tom Wheeler, the current Chairman of the FCC sent Verizon a letter regarding the carrier's decision to start throttling its 4G LTE users who use the most data. Verizon described their move as "Network Optimization," but even Mr. Wheeler was skeptical of this.

Wheeler's letter expressed his concern that this was a nothing more than a method to grab additional revenue streams from customers. He said, "It is disturbing to me that Verizon Wireless would base its “network management” on distinctions among its customers’ data plans, rather than on network architecture or technology." Wheeler backed up his concern with three questions designed to probe Verizon for additional info. Here are those questions,

1. What is your rationale for treating customers differently based on the type of data plan to which they subscribe, rather than network architecture or technological factors? In particular, please explain your statement that, “If you’re on an unlimited data plan and are concerned that you are in the top 5% of data users, you can switch to a usage-based data plan as customers on usage-based plans are not impacted.”
2. Why is Verizon Wireless extending speed reductions from its 3G network to its much more efficient 4G LTE network?
3. How does Verizon Wireless justify this policy consistent with its continuing obligations under the 700 MHz C Block open platform rules, under which Verizon Wireless may not deny, limit, or restrict the ability of end users to download and utilize applications of their choosing on the C Block networks; how can this conduct be justified under the Commission’s 2010 Open Internet rules, including the transparency rule that remains in effect?

Verizon has responded to his letter by saying they are working on a response, but for now they are standing behind their "network optimization."

Here is Verizon's initial response,

"We will officially respond to the Chairman's letter once we have received and reviewed it. However, what we announced last week was a highly targeted and very limited network optimization effort, only targeting cell sites experiencing high demand. The purpose is to ensure there is capacity for everyone in those limited circumstances, and that high users don't limit capacity for others,"

This seems like a typical response from the carrier. The big problem with this logic is that they are only throttling Unlimited Data plan users, instead of all "heavy users." This is a targeted measure and doesn't really improve the experience for all of their customers as they are claiming.

What do you think of Verizon's motives? You can read the entire letter quoted below,

Dear Mr. Mead:

I am deeply troubled by your July 25, 2014 announcement that Verizon Wireless intends to slow down some customers’ data speeds on your 4G LTE network starting in October 2014. Your website explained that this was an extension of your “Network Optimization” policy, which, according to your website, applies only to customers with unlimited data plans. Specifically, Verizon Wireless “manage Es] data connection speeds for a small subset of customers – the top 5% of data users on unlimited data plans” in places and at times when the network is experiencing high demand. Verizon Wireless describes its “Network Optimization” as “network management.”

“Reasonable network management” concerns the technical management of your network; it is not a loophole designed to enhance your revenue streams. It is disturbing to me that Verizon Wireless would base its “network management” on distinctions among its customers’ data plans, rather than on network architecture or technology. The Commission has defined a network management practice to be reasonable “if it is appropriate and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband Internet access service.” Such legitimate network management purposes could include: ensuring network security and integrity, including by addressing traffic that is harmful to the network; addressing traffic that is unwanted by end users (including by premise operators), such as by providing services or capabilities consistent with an end user’s choices regarding parental controls or security capabilities; and reducing or mitigating the effects of congestion on the network. 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.

Accordingly, please provide me with responses to the following questions:

1. What is your rationale for treating customers differently based on the type of data plan to which they subscribe, rather than network architecture or technological factors? In particular, please explain your statement that, “If you’re on an unlimited data plan and are concerned that you are in the top 5% of data users, you can switch to a usage-based data plan as customers on usage-based plans are not impacted.”
2. Why is Verizon Wireless extending speed reductions from its 3G network to its much more efficient 4G LTE network?
3. How does Verizon Wireless justify this policy consistent with its continuing obligations under the 700 MHz C Block open platform rules, under which Verizon Wireless may not deny, limit, or restrict the ability of end users to download and utilize applications of their choosing on the C Block networks; how can this conduct be justified under the Commission’s 2010 Open Internet rules, including the transparency rule that remains in effect?

I look forward to your prompt response.

Sincerely, Tom Wheeler

 

[LoneWolfArcher]

The distinction between unlimited and non-unlimited is what is going to kill them. If they throttle across the board, whether they can charge for the extra data usage or not, then they will be fine. Obviously this is another motive to get people to give up unlimited data, and to maximize profit (by not throttling those that get charged overage fees).

All in all it is terrible PR across the board and they should rethink it entirely before more users jump to the other carriers.

 

[johnomaz]

I think the FCCs probing questions are great and well worded. I'm so f'ing happy they brought up the 700Mhz band open platform rules. I know ints a pipe dream but I want this kind of probing to extend into the FIOS and Comcast BS too.

 

[benb1974]

I think were screwed. No more unlimited.

 

[cr6]

Nice to see the FCC stepping in here to challenge the BS Verizon is trying to pull.

tap'n on my S5

 

[shockracer]

Come on FCC, don't use any lube on VZW!

 

[Dusty]

I think were screwed. No more unlimited.

They're not getting rid of unlimited, they're just souring the milk just enough to get you off of the teat. I called it a while ago that when the GF Unlimiteds got to a predetermined percentage we were going to get hacked off.

 

[mountainbikermark]

I'd like to see the answer to #3 where it specifically states "no limiting, no restricting, no denial of abilities". The definition of throttle may not be denial but by definition it does meet the criteria of what Verizon agreed they would not do , are not allowed to do.
I don't think it'd be cost effective to force unlimited data users off of the ,agreed to terms in question, C block.
Verizon's only hope, to me, is the federal governments ineptness to enforce regulation violators bigger than a mom/pop farm.

Sent from my LG-D801 using Tapatalk

 

[cr6]

Personally, I think I'm already being throttled.....and have been for the last year. When we first got our S3s, almost 2 1/2 years ago, our speeds were averaging 20-25mbps up, after about a year it dropped to an average of 5-6mbps up, sometimes less. I live in a small town so there can't be THAT much network congestion. I can understand a slight drop during peak hours, but not that much. When we first got our new S5s, speeds were averaging between 17-20 mbps up, during peak hours, the last week or so I've been averaging 5-8mbps up.....here's a screen shot just taken, during non peak hours.

Seems a bit fishy to me.
Town next to ours just got XLTE , so I'm going to drive over after work (about 20 min away) and do a speed test to see what the difference is.
If my current average is 5-8mbps and they throttle THOSE speeds, I won't be very happy. I may look into switching to TMo, even though they have crappy service everywhere outside of town. We'll see.
To be continued.....

tap'n on my S5

 

[Dusty]

Personally, I think I'm already being throttled...

For what it's worth I usually see a big drop in speed around lunch hour and rush hour.
Try later and see what happens.

 

[akhenax]

I've found also that the older the hardware get's the more lazy the radio becomes. Also, sammy antennas are notorious for not giving the best signal strength vs other similarly compared brands.

On another note, I'm using more of my 4G data to torrent now that TWC has cast the first stone with a cease and desist letter of me doing so. I am dropping them for FIOS, which is very ironic considering I'm dropping Verizon wireless for TMo...

...but not yet.

 

[cr6]

For what it's worth I usually see a big drop in speed around lunch hour and rush hour.
Try later and see what happens.

No go....after 3pm here. Pretty sad LTE speeds.

tap'n on my S5

 

[UrbanBounca]

The worst part, personally, is that I don't have another choice. I can use prepaid, such as Straight Talk, but it's still the Verizon network, and I can't stand them even more so than Verizon.

 

[TOMMYBOT]

i jumped to t mobile 4-5 months ago. Love them

 

[swc2001]

Personally, I think I'm already being throttled.....

tap'n on my S5

That is the EXACT thing happening to us as well. We live in the Sticks
and we use to get 25 mbs now its down to 3 or as slow as .04!!