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FCC questions carriers on throttling practices for subscribers

The FCC wants carriers to explain their throttling practices after Verizon announces plans to start throttling unlimited users in October (NYSE:VZ)
| Business, Financial & Legal News | Posted: Aug 11, 2014 11:00 am

A lot of the mobile phone users out there aren't happy with the throttling that their carriers perform when they go over what the carrier feels is fair use for data. Late last week FCC chairman Tom Wheeler dismissed Verizon's reason for throttling some users and announced that the commission will be questioning other carriers as well.




Verizon plans to throttle the top 5% of LTE users on unlimited plans starting in October when the network is under heavy load. Verizon claims that speed for these users would go back to normal when the network is less congested. Verizon noted that this practice is widely accepted in the industry.


Wheeler said "All the kids do it" isn't a good reason. "My concern in this instance-and it's not just with Verizon, by the way, we've written to all the carriers-is that it is moving from a technology and engineering issue to the business issues ... such as choosing between different subscribers based on your economic relationship with them ," Wheeler said.


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