Verizon said it has no plans to throttle unlimited data customers, will simply charge more
Verizon Wireless plans to go its own way in terms of how it treats data throttling for its unlimited data customers, claiming it has no plans to curtail network speeds or customer priority.
According to a CNet report, Verizon Communications CFO Fran Shammo said the carrier would not artificially alter network speeds for its unlimited data customers should they hit any usage tier. Instead, the carrier plans to simply charge more money for the potential of unlimited data access.
“For a customer who signed up for unlimited, they’re going to get unlimited,” Shammo told CNet. “But we are increasing the price. These customers are consuming a lot of data. But we’re not in the habit of throttling customers.”
Verizon Wireless earlier this month announced it would begin charging an additional $20 per month for customers on legacy unlimited data plans, pushing the total cost for that access to $50 per month. The price increase is set to take effect in mid-November.
The carrier did note the increased price would come with the ability for the less than 1% of customers with the unlimited plan and choosing to maintain that plan despite the price increase to also partake in Verizon Wireless’ monthly device payment program instead of the current policy that requires those customers to pay the full price on the device up front.
Verizon Wireless for years has been marginalizing its unlimited data plan, which it stopped offering to new customers in 2011, providing various promotions in an effort to entice those customers to switch to tiered data packages. Those enticements also included taking away features, such as the ability to receive device subsidies, although the carrier recently moved away in total from that practice.
Verizon Wireless also threatened at one point to implement data throttling under the guise of “network optimization” across its LTE network, which would have limited network speeds for customers with unlimited data plans in some instances. Those plans were pulled after Verizon Wireless received a stern 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.
Sprint recently stated it plans to increase the price of its unlimited data option by $10 per month beginning Oct. 16. Sprint and T-Mobile US, which increased its price on unlimited data last year, remain the only two nationwide operators still offering unlimited data for postpaid customers.
AT&T is currently fighting a $100 million fine from the FCC connected to the carrier’s throttling of network speeds for its unlimited data customers.
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