Verizon Wireless has decided to not implement a controversial “network optimization” program across its LTE network that would have limited network speeds for customers with “unlimited” data plans in some instances.
In a statement, Verizon Wireless noted:
“Verizon is committed to providing its customers with an unparalleled mobile network experience. At a time of ever-increasing mobile broadband data usage, we not only take pride in the way we manage our network resources, but also take seriously our responsibility to deliver exceptional mobile service to every customer. We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans. Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”
The plan was initially set to begin today, and would mimic a similar program the carrier has set up for its legacy CDMA-based 3G network that impacts all users when a specific cell site experiences congestion issues. Verizon Wireless recently stated that 76% of its total data traffic is now traversing its LTE network.
According to Verizon Wireless’ explanation of the network optimization practice, “95% of our data customers are not impacted,” the carrier noted on its website. “The top 5% with devices on unlimited data plans may experience managed data speeds when connected to a cell site experiencing high demand after reaching certain data-usage levels in a bill cycle. These high data users will feel the smallest possible impact and only experience reduced data speeds when necessary for us to optimize data network traffic in that area.”
Verizon Wireless did note that the practice does not impact “government or business accounts that have signed a major account agreement.”
The carrier also went out of its way to explain that the move was not “throttling,” claiming:
“With throttling, your wireless data speed is reduced for your entire cycle, 100% of the time, no matter where you are. Network optimization is based on the theory that all customers should have the best network possible, and if you’re not causing congestion for others, even if you are using a high amount of data, your connection speed should be as good as possible. So, if you’re in the top 5% of data users, your speed is reduced only when you are connected to a cell site experiencing high demand. Once you are no longer connected to a site experiencing high demand, your speed will return to normal. This could mean a matter of seconds or hours, depending on your location and time of day.”
Typically, data throttling is regarded as anytime network speeds are artificially limited by a carrier in order to preserve network integrity. Verizon Wireless indicated that its network intelligence means its move is not “throttling.” The amount of speed degradation is not a set speed, with Verizon Wireless explaining only that those customers subject to the process would receive one-half the network resources as customers not subject to network optimization policies.
Verizon Wireless’ plan to expand the network initiative drew a letter from Federal Communications Commission Chairman Tom Wheeler, who said he was “deeply disturbed” by the move, and accused the carrier of abusing the principle of network management to try to reap more profit from its customers.
“’Reasonable network management’ concerns the technical management of your network; it is not a loophole designed to enhance your revenue streams,” Wheeler wrote.
In his letter, Wheeler asked Verizon Wireless to address three issues: first, to explain its rationale for treating customers differently based on their data plans, and specifically, why it included a statement encouraging LTE customers with unlimited data plans to switch to capped plans to avoid any data slowdown; second, the chairman wanted to know why the company was extending its 3G speed reductions to its much faster LTE network; and third, Wheeler asked Verizon Wireless to explain how the policy meets the rules for its 700 MHz license, which states that the carrier cannot deny, restrict or limit the ability of end users to download and use applications of their choosing.
Verizon Wireless CEO Dan Mead responded at that time by saying he was “surprised” by the FCC reaction, and telling reporters at an event in New York that it appeared the chairman had some of his facts mixed up.
“There were many parts that were incorrect,” Mead said, according to a CNet story. “We have great respect for the FCC, but I’m not sure the chairman understood what we’re doing exactly.”
Wheeler came out after Verizon Wireless changed its position in favor of the move.
“I salute Verizon Wireless’s decision,” Wheeler said. “This is a responsible action and I commend Verizon’s leadership on this issue.”
Verizon Wireless stopped offering unlimited data services in mid-2011, instead offering customers data buckets. Customers that were already signed up for $30 per month, unlimited services were allowed to keep those plans, but new subscribers were limited to capped packages. The one caveat for those looking to keep their unlimited plans was that they could not take advantage of any device subsidy offerings or they would lose the unlimited data.
As part of elimination the option of unlimited data, Verizon Wireless implemented inter-user best effort network optimization technology, which impacted those customers meeting the heavy data-use criteria.
“IUBE capability allows users to be placed into various user categories; each assigned a priority for resource allocation,” the carrier explained. “Verizon Wireless deployed IUBE with two categories. The two inter-user priority categories are specified as: Category 0 and Category 1. Category 0 is for those customers who subscribe to unlimited data plans who are in the top 5% “high usage” customers and are set to receive a smaller proportion of the resource as users in class 1 during periods of high demand within a cell site sector. Category 1 is the default class for typical use.”
Verizon Wireless has since rolled out a number of initiatives looking to entice those unlimited data customers to migrate to one of the carrier’s Share Everything plans, with the latest move appearing to now use software in order to limit network congestion being caused by rogue, unlimited data users. Verizon Wireless earlier today unveiled new data buckets for its More Everything shared plans that provide for a significant increase in a customer’s capped data allotment for no additional charge.
Bored? Why not follow me on Twitter
