Verizon’s slowing down data for some of its subscribers

FCC is ‘deeply troubled’ by Verizon’s plan to slow down data for subscribers.  Is this a play for stronger regulations by the FCC?

The Federal Communications Commission has sent a strongly worded letter to Verizon warning that changes in the way it handles mobile Internet traffic may violate federal regulations.

More broadly, the letter by FCC chairman Tom Wheeler is the latest sign that the commission is considering applying its new net neutrality rules to wireless carriers.

Last week, Verizon announced that wireless customers on the company’s unlimited 4G LTE data plans would become subject to restrictions on that service beginning in October. The most voracious data users — meaning the top 5 percent, the company said — would see their traffic slowed during periods of heavy demand, with the limits lifted once the congestion had passed or the users moved into range of another cell tower. Verizon already does this for 3G users; the new changes would extend the policy to 4G LTE users, too.

“The vast majority of data customers will not see any impact from Verizon Wireless’ Network Optimization policy, and will be able to browse the Internet, stream music and videos, upload pictures and send emails as they always have,” Verizon said in a blog post announcing the changes last week.

A Verizon Wireless spokesman said Wednesday that the announcement last week was “highly targeted and very limited.”

“We will officially respond to the chairman’s letter once we have received and reviewed it,” the company said.

But the targeted nature of the slowdowns may be precisely the problem; citing Verizon’s Web site, Wheeler accused the company of discriminating against unlimited data customers but leaving its other customers alone. Wheeler said he was “deeply troubled” by the attempt to apply data restrictions on Verizon’s “much more efficient” LTE network, and implied strongly that the company was invoking “network management” as an excuse to make more money.

Most critics claim Verizon is trying to encourage unlimited-data customers to switch to more lucrative metered plans.  Throttling back users on the Unlimited plan may be the ticket for that.

Wheeler points out in his letter to Verizon Wireless CEO Dan Mead: throttling LTE data may violate the obligations Verizon undertook when it acquired valuable C Block spectrum. Those rules specifically state the largest US carrier “may not deny, limit, or restrict the ability of end users to download and utilize applications of their choosing on the C Block networks.” Wheeler has asked Mead to offer his thoughts on the subject in a “prompt” response. He’s also interested in hearing Verizon’s “rationale for treating customers differently based on the type of data plan to which they subscribe,” and why throttling and similar measures are necessary for such a vast LTE network to begin with.

Wheeler’s comments on network management address another key aspect in the net neutrality debate. Consumer groups have been calling for the FCC to classify Internet as a utility under Title II of the Communications Act — which would allow the FCC to regulate ISPs. Opponents have pushed back, saying that Title II merely prohibits “unjust or unreasonable discrimination” and that even under Title II, so-called “Internet fast lanes” or other traffic discrimination might still be considered legal.  In his letter Wheeler seems to be implying a form of discrimination.

Throttling network speed is common, so it’s interesting how Wheeler is singling out Verizon in this case.  It may be as if they are making the case for bigger things, and we could again see a play for the FCC attempting to try and regulate ISP’s.  We should all watch carefully how this plays out, since it seems like the tip of the iceberg.

Adapted from an article originally posted on Washingtonpost.com.