When news broke that Verizon would start throttling its unlimited data customers, the FCC came forward in calling out the carrier’s actions and the possible repercussions. Verizon responded by explaining the data throttling it intends on doing. By throttling the data of affected customers, those on tiered data plans are less likely to be harmed by network that is clogged. The carrier also feels that there is such a small amount of customers being affected and that other carriers are already doing the same. Well, the man in charge over at the FCC is still very unhappy.
Tom Wheeler, the FCC’s chairman, made it clear that Verizon should not be proud of itself for following others. He said “’All the kids do it’ was never something that worked with me when I was growing up and it didn’t work with my kids.” Furthermore, Wheeler feels that this is a technological issue and a business issue running directly into one another. He was very clear in saying that Verizon should not be doing this strictly for a profit.
By throttling the data of customers on an unlimited plan, the likelihood of those customers switching to a different plan increases. That is exactly what many carriers want. If they get data-hungry customers to a tiered plan, they are making money in two ways. The first is from the size of the tiered plan itself. A customer that uses a lot of data will want to have a big pool to work with to avoid overages. So, as usual, they are profiting from a the monthly plan. But then they can hope customers go over their plan and get charged overage fees.
Source: The Hill