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janrinok writes:

Forbes is reporting [forbes.com] that Verizon plans to limit download speeds for some of its 4G LTE users:

Verizon Wireless launched a "network optimization" policy three years ago to limit the data speeds of its heaviest 3G data users — subscribers with unlimited data plans whose data usage is in the top 5% of all users. A majority of Verizon's users have switched over to a data plan that is capped at a tiered amount, but there is still a large number of subscribers that were grandfathered into unlimited data plans after it was no longer an option. On October 1st, Verizon will apply the network optimization policy to the top 5% of data users on its 4G network also.

The data speed of the top 5% of users will be slowed down when they are connected to cell sites that are experiencing heavy demand "so that all data users will enjoy a quality wireless data experience." If those users move to a different cell site or eases down on usage, then the speed returns to normal. These users may experience video buffering, a lag while gaming online and slower Internet browsing. The network optimization policy will apply to the top 5% users that have passed their minimum contract term and consume around 4.7GB of data per month or more.[...]

Verizon said that its network optimization policy is not considered "throttling" because it uses network intelligence. Throttling means that your wireless data speed is reduced for the entire lifecycle, 100% of the time no matter where you are. Verizon's Network Optimization suggests that your connection should be as good as possible as long as it doesn't cause congestion. Once you are no longer connected to the site that experiences high demand, the speed could return to normal in seconds or hours based on the location and time of day.

So, what do you think? Is this throttling by a different name or a reasonable way to manage the current limited network capacity — or, indeed, both?

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