In preparation for the release of iPhone on its network, Verizon has released a PDF memo on its website which states that the company will start throttling the data-throughput of subscribers that use a lot of data and fall within the top 5% of Verizon Wireless data users.
The relevant portions of the memo reads:
Verizon Wireless strives to provide customers the best experience when using our network, a shared resource among tens of millions of customers. To help achieve this, if you use an extraordinary amount of data and fall within the top 5% of Verizon Wireless data users we may reduce your data throughput speeds periodically for the remainder of your then current and immediately following billing cycle to ensure high quality network performance for other users at locations and times of peak demand. Our proactive management of the Verizon Wireless network is designed to ensure that the remaining 95% of data customers aren’t negatively affected by the inordinate data consumption of just a few users.
Verizon is terming this move as proactive management to ensure that the remaining 95% of the user’s aren’t badly affected by a few heavy users. Verizon will not be penalizing the heavy users alone, for the rest of the crowd it will be implementing “optimization and transcoding technologies” that will ensure more efficient data transmission. In simpler terms Verizon will be zipping up your data, or transcoding it into lower quality formats – which would mean that although you will be able to see your videos and photos, they wont be of the same quality that you are used to on the web.