Technology

Verizon Gets iPhone, Starts Limiting Data Use

This was the day many Verizon Wireless users had been waiting for, the ground-breaking iPhone was finally available for the Verizon system.  However, before the fireworks show ended, the carrier with the highly rated network envied by many an AT&T subscriber dropped a little bomb on new customers.  Verizon Wireless would be watching how much data each consumer used… and penalizing those who use what they deem too much bandwidth.

As reported online by the website engagdet.com, Verizon posted the new usage rules online in a pdf that read;

“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 percent 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 percent of data customers aren’t negatively affected by the inordinate data consumption of just a few users.”

So, if the company happens to find you in the top 5% of users on the Verizon data network, they will put a limiter on your account for the remainder of the current month AND the following month.  You are digitally grounded for over a month!

But wait – there’s more!  Verizon is also using something called transcoding that will allow them to change the quality of data you are transmitting across their network.  Of course VZW is saying that the compression technology used in transcoding will have no effect on the files you send.  Right.

The official explanation;

“We are implementing optimization and transcoding technologies in our network to transmit data files in a more efficient manner to allow available network capacity to benefit the greatest number of users. These techniques include caching less data, using less capacity, and sizing the video more appropriately for the device. The optimization process is agnostic to the content itself and to the website that provides it. While we invest much effort to avoid changing text, image, and video files in the compression process and while any change to the file is likely to be indiscernible, the optimization process may minimally impact the appearance of the file as displayed on your device.”

OK, let‘s review the day’s news;

Verizon gets the iPhone 4 (not a new model, but the same one released last summer)

Verizon sets new policy that will penalize top 5% of data users with a digital “time out” that lasts a month or more

Verizon also let’s users know that the data they do send may be altered via something called “transcoding”

Before locking yourself into a two-year contract, it might be best to arm yourself with as much information as possible.

Comments (68)

  • RightPolitically
    Posted on February 4, 2011 at 6:28am

    Sounds a bit like progressive taxation to me. The more you earn, the more you get taxed. With Verizon, the more bandwidth you use (YOU RICH), the more you get punished (CONFISCATED)!

    Report Post » RightPolitically  
    • the_ancient
      Posted on February 4, 2011 at 9:52am

      What?????

      So I guess your electric bill is like “progressive” taxation so

      What a stupid statement.

      Report Post » the_ancient  
    • MysteryGirl
      Posted on February 4, 2011 at 9:43pm

      quoted: RIGHTPOLITICALLY
      Posted on February 4, 2011 at 6:28am
      Sounds a bit like progressive taxation to me. The more you earn, the more you get taxed. With Verizon, the more bandwidth you use (YOU RICH), the more you get punished (CONFISCATED)! ”

      Verizon should know better than to pull a sudden move like this. They knew there were thousands waiting for the arrival of the iPhone and they preyed on them like a deer in snow looking down the nose of a rifle. Congratulations! You’re now the new owner of an iPhone … OH, and before we forget …we’re CHANGING TERMS OF SERVICE! This was one of the most underhanded moves I’ve ever seen – and if you read my previous posting on how they KEPT a returned NEW “Smartphone” but also billed me the full $600 because it arrived at their destination a few days late. (they counted transit time as part of my ownership!!). Unfortunately I’m locked into another contract with another “smartphone” and not only out $600 but also a phone I PAID FOR!

      Verizon has had several class action lawsuits and I see more in their future.

      SHAME, SHAME, SHAME on YOU VERIZON!

      Report Post » MysteryGirl  
  • awizard
    Posted on February 4, 2011 at 6:27am

    @ jzs; Net neutrality = Government control, Free market = buy another phone system …

    To all (most) of the rest of you, if you are in the top 5%, you spend too much time playing with your “phone” …

    By the way they all have limits of some type, even my internet DSL land line has a “limit”, I‘ve never reached it and don’t worry about it …

    I, for the longest time thought “cell phones” were new devices they used in prisons … huh, maybe they are …

    Report Post » awizard  
    • Non_Probate_Asset
      Posted on February 4, 2011 at 12:25pm

      Great. So what happens when all the other cell phone companies start limiting access to the internet in one way or another? Contrary to your bizarre statement, as of right now, I have no limits on my usage of either my land line or my smartphone. If we implemented net neutrality laws, we would ensure that every citizen‘s ability to access information and share thoughts was not hindered or destroyed by some corporation’s cost-saving plan.

      I do not want ANYONE’s ability to access ANY website to be slowed down or even prevented, whether that website is theblaze or huffingtonpost. Without net neutrality, this sort of thing will DEFINITELY happen.

      Report Post »  
  • shellmen
    Posted on February 4, 2011 at 6:14am

    My grand children all have new phones and their lives are SO MUCH BETTER. Get a life. If you all were running your lives the right way and getting the important things taken care of you would not have time to be on the phone. I have never seen so many people with so many IMPORTANT things to talk about.

    Report Post »  
  • wtfusa
    Posted on February 4, 2011 at 6:04am

    Maybe all this ‘limiting’ has to do something with the $1.5 billion BAILOUT money they took from the federal government. Does the BIG Obammy want the money repaid now? Hmmmm? Just something to think about. Check it out. http://www.businessinsider.com/verizon-bailout-2010-12

    Report Post »  
  • mikefromlongisland
    Posted on February 4, 2011 at 5:38am

    WHAT is the use of coming out with a new product and limiting service ?

    If THIS is your product niche’…not being able to serve customers…WHY STAY IN BUSINESS ?

    WHAT KIND OF LUNKHEAD would get service from Verizon now ?

    Quiet..I hear the sound of their stock CRASHING into lower Broadway !

    Report Post » mikefromlongisland  
  • MysteryGirl
    Posted on February 4, 2011 at 4:32am

    Verizon – SHAME ON YOU!! Unfortunately my previous “smartphone” couldn’t last another month or two for the iPhone release, so I bought a Droid 2. It was a MAJOR FAILURE of a phone and traded it for a new HTC Incredible. It seems that they count “travel time” … the 3 days it takes to receive your phone and the 3 days it takes to send back. The first phone was received just a few days over their 30 day period … Verizon KEPT $600 AND THE PHONE!!! Long story short, the Droid 2 froze constantly from the day it arrived. I ordered a new one and someone on their end cancelled my order without notifying me. Once I called and they saw THEIR MISTAKE, the other phone was sent. Transferring data to a Mac was almost impossible (the software has gotten friendlier … you have to buy your own).

    VERIZON, you OWE me my $600 because YOU DID RECEIVE the original phone. Transit time is a LAME EXCUSE as is your “fine print” … all to a customer who’s been with them with 5 separate lines over 10 years. SHAME, SHAME, SHAME on YOU!!

    Report Post » MysteryGirl  
  • bughotti
    Posted on February 4, 2011 at 3:42am

    I can’t wait to get rid of AT&T. I’ll be happy to pay the early termination penalty. I drop 10 calls a day and can’t get reception at my house. When I had Verizon I didn’t drop a call in 2 years.

    Report Post »  
  • the_ancient
    Posted on February 4, 2011 at 2:18am

    I HATE when companies do this.

    First, there is no suck thing as a “unlimited” data plan, never can exists, the pricing would never work if it were truly unlimited, then companies like Comcast, Verizon, ATT etc impose weired non-substantive caps that no one can even attempt to follow or abide by.

    There will alway be someone in the 5% area, I dont care if everything drops to only checking 1 web page, SOMEONE HAS TO BE IN THE 5%, that is how percentages work.

    If these companies are not prepared to actually offer “unlimited” data usage, then THEY SHOULD NOT ADVERTISE UNLIMITED DATA USAGE. I cant wait until someone has enough money to sue one of these companies for false advertisements. Unlimited should legally mean UNLIMITED and not “unlimited except when we think you used too much”

    Price your products HONESTLY. UNLIMITED = no limits. PERIOD. if you cant offer that, dont.

    Report Post » the_ancient  
    • ItTakesFaith
      Posted on February 4, 2011 at 3:45am

      Ancient,

      Point well taken. However, as one of the original “early adopters” of the AT&T iPhone, I purchased an “unlimited” plan. As such, it was rather expensive (I don’t have a bill at the “ready”, but remember it to be at-or-near $100/mo.), but allowed for all of my significant iPhone uses & roaming… it was quite the blessing. As AT&T progressed with later updates, they quickly changed their rate plan – instead offering several plans – and marketed them as rate reductions (beginning at $25/mo. data plans)…! Gone, was the “unlimited” rate that I had long-enjoyed. Fortunately, my rate plan has been “grandfathered” and remains available to me for as long as I keep my account active and don’t mind paying a decided premium for the service (to date, the new plans offered by AT&T would’ve saved $$$, but those savings will evaporate in the future!). I appreciate that with an unlimited option, my current-and-future costs can be controlled/managed, rather than being at the whim of my cell provider.
      ——-
      Folks, it’s only a matter of time until the current Administration finds it necessary to declare cellphone voice and data service to be a Constitutionally-protected RIGHT; and orchestrate a GM-style takeover of the industry…!
      ——-
      Remember the “good old days’” when the typical gossiper had to be tethered to a home-based landline (where their chatty evil-doing ways restricted potential dangerous simultaneous driving or walking movements…!)? Ah, the joys of rotary phones…

      Report Post » ItTakesFaith  
    • the_ancient
      Posted on February 4, 2011 at 4:15am

      @ITTAKESFAITH, sorry but you do not have a true unlimited plan, they have never existed EVER. Every single company, ALL OF THEM, that offers anything “unlimited” from bandwidth to apple pies, has a clause in the terms of service that allows them to disable, deny or change your service at any time if they feel you are “abusing” or “excessively using” their systems. Look at your ATT contract again, it will be there

      I know I used to help write terms of services for IT Service Providers.

      There is no such thing as unlimited, there cant be. These companies are using the law of averages to enable them to craft a nice marketing gimmick and then using very good lawyers to craft very nice “outs” of them to ensure they never have to actually fulfill the promises from the marketing team. They make out like bandits by ensuring that most people never find out how my bandwidth they actually use, and get low usage users to get the unlimited plan (which is why ATT had for a long time only a 5 or 10GB and then a unlimited plan) then they only use a couple of GB a month, so the rare person that does use a good amount they will not lose there shirts, but if too many people start to actually use what they were sold then they have the legal out because now your “abusing” the network.

      Report Post » the_ancient  
    • ItTakesFaith
      Posted on February 4, 2011 at 11:50am

      I don’t disagree with your comments. Hence, when I wrote the word “unlimited” (I did it in quotes!). My plan, however, did afford me much latitude in usage… and that works for me. I trace my mobile phone usage into the very early days’ of the industry, where the phones were hardly “mobile”. My first phone (way back in the Ronald Reagan ‘80’s) was mounted between the seats of my pride-&-joy BMW (What can I say, I was young, single, & just out of grad school.). Mounted next to my visor was a little microphone that enabled me to be truly “hands free”… cool! In those days’, the expense that could eat-you-alive was “roaming charges”, that would be applied to your bill if you happened to drift out of their prime coverage area. I remember $600+ phone bills when I would traverse the state of California (for my business), ouch! At least I didn’t need to worry about the “unwashed masses” drifting all over the road because of inattention…
      ——-
      The so-called “unlimited” plans that became available to me at the advent of the iPhone is an improvement of light years’ over previous plans… In fact, I have never had much of a complaint with AT&T; knowing the logistics they faced in getting the iPhone beast fed… I fully expected the cocky Verizon comments to be humbled once they had their crack at serving the techno-hungry Apple product. As soon as I learned that they were actually working with an older technology system (including the older version iPhone), I predicted Verizon wouldn’t live up to expectations… As AT&T completes the rollout of the system improvements over the next six months (I think that is the timeline), it will only get better. I can hardly await for the iPhone v5…!

      Report Post » ItTakesFaith  
    • the_ancient
      Posted on February 4, 2011 at 3:40pm

      My only “complaint” with ATT is they do everything 1/2 way and only look at short term profitablity and goals with out ever looking at the long term, which is true for about 99% of the other companies out there.

      They were the last to adopt LTE, they where the last to really upgrade their telcom networks to fiber, they still have not embraces Fiber to the Home like Verizon has (which will be a necessity in the next 10 years, one the Verizon will be uniquely set up for, one that all of the telcom/cable providers should be worried about)

      as to the rest, I just have a problem with any deceptive practices no matter how “tame” they are. the Free market only works correctly when all parties are trading honestly and fairly.

      Report Post » the_ancient  
  • CowboyExpat
    Posted on February 4, 2011 at 1:50am

    Virginmobile sucks big time…. I can’t get coverage in my own house because some jerk neighbor installed a big a*s wireless modem from sprint and it blocks me. Piss off….all of ‘em.

    Report Post » CowboyExpat  
    • the_ancient
      Posted on February 4, 2011 at 2:03am

      So someone installs a illegal device (if it is blocking your access to the cell phone network it is VERY illegal) and you blame virgin mobile for it????

      Seems odd

      Report Post » the_ancient  
  • StackAble
    Posted on February 4, 2011 at 1:43am

    If Verizon informs subscribers to new unlimited plans of this policy before they sign, it’s just part of the contract and is no different than any other condition. No big deal. If they try to impose this on those of us who already have unlimited data plans that we agreed too before this was a condition, then this is highly likely to be considered breach of contract on their part and thus users who are unhappy with this may have legal out to end their contract with big V with no penalty. I like Verizon but I’m stuck with them too.. If I wasn’t, I would go with Sprint they use ALL of Verizon’s Towers as well as their own an they cost far less than Verizon or AT&T. I’m glad I-Phone users have an alternate vendor to choose from, Competition makes most things better quicker, and I pitty anyone who ever had to deal with AT&T Customer “Service” they so suck… Viva la Android!

    Report Post » StackAble  
  • huntee
    Posted on February 4, 2011 at 1:33am

    virginmobileusa.com plans start at $25 month then a $40 a month and $60.The cheapest is 300 anytime mins unlimited text,data e-mail and web. $40 has 1200 anytime plus unlimited everything else.$60 has unlimited everything. they use the Sprint network so its reliable.

    Report Post »  
  • faithaz
    Posted on February 4, 2011 at 1:20am

    I like verizon i have never had problems with them, thier bills are easy to read. I dont care about those over priced fancy phones LOL.

    Report Post » faithaz  
  • chfields62
    Posted on February 4, 2011 at 1:17am

    I’ve been with Sprint for over 10 years now and have been very happy with the service. I pay $69 a month unlimited everything. I have had very few dropped calls and my quality has been excellent. AT&T, Verizon, etc can’t touch the bang for the buck….But that is just my experience, I know plenty of people who have had the opposite results, so, to each his own………….

    Report Post »  
  • huntee
    Posted on February 4, 2011 at 1:16am

    @daytonconserve

    Go to Virgin Mobile. check out their plans and service areas.

    Report Post »  
  • DaytonConserve
    Posted on February 4, 2011 at 1:10am

    I was all set to buy a 4G aircard yesterday from Verizon accompanied with a 3G data plan since 4G is not yet available in our market. The brochure said for 20 bucks I could get 3Gb of data. WRONG according to customer no service. I would be required to contract for 4G service even though that service won’t be available here for months and I would have to pay 50 bucks. Needless to say I am still looking for a better wireless internet service.

    Report Post »  
  • huntee
    Posted on February 4, 2011 at 1:09am

    Virgin have a pay as you go phone plan, $25 a month 500 minutes, unlimited text and web. Dropping AT&T after 6yrs, they started slowing down my data transfer and limiting my GigaByte usage, my original plan fom 2005 had unlimited data, they should not have broke my original terms/contract, will never use them again.

    Report Post »  
    • corp-mule
      Posted on February 4, 2011 at 12:14pm

      I have an att plan from 2004, they’ve been trying to move me off of it for years saying something about it being an old network. And now they’ve just sent me a txt msg saying it will be terminated in May. They say I need to buy a new phone and plan.

      Report Post »  
  • TheRealElvis
    Posted on February 4, 2011 at 1:06am

    All of the carriers are a bunch of thieves. Them, banks and lawyers. Just plain ole thieves. And credit card companies. And cable companies. Just thieves. And insurance companies. All of them, and car manufacturers. Thieves. Thieves. Thieves. And the IRS. And property tax collectors. Thieves. Just a bunch of thieves.
    And Congress. Just a bunch of thieves. And dentists. All thieves.

    Report Post »  
    • StackAble
      Posted on February 4, 2011 at 1:32am

      Yes..and . So what’s your point? or are you just funning us?

      Report Post » StackAble  
  • paulamadden
    Posted on February 4, 2011 at 1:04am

    We use our phone for convenience….not to be the coolest person in town. I could care less about an IPhone.

    Report Post »  
  • Lacheris74
    Posted on February 4, 2011 at 12:43am

    Hah, why do people feel that EVERYONE is entitled to same amount of service? If a person pays the required and full price for UNLIMITED anything…they should get it yes? So why start limiting these people who pay their share so that everyone ELSE can ‘get their fair amount in’? OR maybe instead of constricting people to the current network…our wireless providers should actually spend some of the billions of profit they make each year and EXPAND!! yay!!! Then all the little boys and girls could stream whatever they wanted to all the time. But in all honesty, people should get what they pay for… and give a big F U to everyone looking for ‘entitled fairness’ :D

    Report Post »  
  • timej31
    Posted on February 4, 2011 at 12:37am

    Better one. http://www.youtube.com/watch?v=NW2LJYDbNFk

    Report Post » timej31  
  • timej31
    Posted on February 4, 2011 at 12:35am

    http://youtu.be/wT-8Dm1VThc

    Report Post » timej31  
  • Conservative Screenwriter
    Posted on February 4, 2011 at 12:32am

    Thanks, I actually appreciate the heads up. I was just going to get one today.

    Report Post »  
    • CatB
      Posted on February 4, 2011 at 12:57am

      I just sent the info to friends who might have been considering it. … always good to have all the information.

      Report Post »  
  • Quad-rip-legic
    Posted on February 4, 2011 at 12:27am

    everybody wants to play big brother these days.

    Report Post » Quad-rip-legic  
  • calijohn
    Posted on February 4, 2011 at 12:27am

    is this kinda corporate shilling necessary on this site?

    Report Post »  
    • Doctor of Truth
      Posted on February 4, 2011 at 8:33am

      digital signal is a fundamental human right. bandwiith is necessary for the pursuit of happiness guaranteed us by our athiestic founders. we myust take bandwiidth from the elite, and spread the wealth to those who have been digitally discriminated against. digital justice. it is time to rise up against the corporate corporations.

      Report Post » Dr of T  
  • xcefkevin
    Posted on February 4, 2011 at 12:22am

    I just got rid of ATT for their charges and switched to a tracfone. I might not have the coolest phone on the block but i’ll have the most money.

    Report Post »  
    • boodrow
      Posted on February 4, 2011 at 12:35am

      I’ve had Straight Talk since they started selling back over a year ago. Horribly cheap phone, but unlimited talk, text, and “wireless” for $50. If I can’t pay the bill, big deal… I ain’t getting a $200- $300 early cancel fee. AT&T, Verizon, T-Mobile and all those iphone blackberry rip off douches can stick it where the sun don’t shine!

      Report Post » boodrow  
    • cheezwhiz
      Posted on February 4, 2011 at 12:36am

      So what was that word I was looking for ?
      Oh yeah
      RATIONING

      Report Post » cheezwhiz  
    • GEW
      Posted on February 4, 2011 at 12:37am

      so whats your plan and what are you paying for say, 480 minutes. Think that mine, unlimited texting.

      Report Post » GEW  
    • CatB
      Posted on February 4, 2011 at 12:41am

      I am doing the same thing .. the AT&T I will keep active for a couple of months while I switch over to a new number .. and use up roll over minutes! Just got the new phone .. have to activate .. and check to make sure it works in my house (metal roof) and then bye bye monthly bill!

      Report Post »  
    • so broke
      Posted on February 4, 2011 at 12:52am

      Time to bail out of your rip-off cell phone contract! I all done with them too!

      Report Post » BlazingPatriot  
    • stifroc
      Posted on February 4, 2011 at 1:00am

      i thought that was the whole purpose of having different data plans… so that those who use greater bandwidth pay more… just like those who use more minutes… but I guess that is a free market principal and therefore must be ignored… instead we will still take your money, but ration you the service that you paid for.

      Report Post » stifroc  
    • Hobbs57
      Posted on February 4, 2011 at 1:03am

      Here in Pittsburgh, my provider is Cricket, whom I believe is part of Leap. Anyhow, I pay 55$ for unlimited everything on a Smart Phone ( Anddriod- Sanyo VIO) Sometimes the system is jammed up a little and I have a few problems, but nothing that bothers me. I see it as I get all the capabilities of a smartphone, the internet is fast ( almost as fast as my computer) and unlimited access for a great price.

      You don’t believe how many people still get ATT and Verion or Sprint and pay ridiculous prices because they say the call clarity is better and less calls are dropped. First of all, it is always their phone dropping the calls and second of all, Not O SO long ago, unless I was in my home, you weren’t going to reach me, PERIOD.. I love Cricket and the service they provide.. Capitalism at it’s best. Yet, I am sure the socialist who complain about being oppressed and hate big business, have ATT and pay double than I do. I am so tired of these entitlement demanding baby’s.

      Report Post » Hobbs57  
    • jzs
      Posted on February 4, 2011 at 1:22am

      That’s why we ne need net neutrality.

      Report Post » jzs  
    • the_ancient
      Posted on February 4, 2011 at 2:09am

      I would recommend looking in to other PrePaid Carries that do not lock the SIM’s down, this will enable you to buy any unlocked GMS phone to use with the service.

      Report Post » the_ancient  
    • GONESURFING
      Posted on February 4, 2011 at 3:26am

      Haven’t a clue about this, just use my phone for talking.

      Report Post » GONESURFING  
    • Robert-CA
      Posted on February 4, 2011 at 5:58am

      6 month without cell phone , thank you very much . Money is short these days , next to cancel will be cable & I don‘t care what people will say if I can’t afford it I’m not having it .

      Report Post » Robert-CA  
    • Dustyluv
      Posted on February 4, 2011 at 6:59am

      I buy local with a small company. I get great service, no ripoffs and the money stays here.
      Screw the big guys.

      Report Post »  
    • kNOwKINGsmen
      Posted on February 4, 2011 at 8:20am

      I use prepay cell and I love my majc jack.
      Now I can use my savings to buy more rice for my family.
      Thank you MajicJack.

      Report Post » kNOwKINGsmen  
    • Sheepdog911
      Posted on February 4, 2011 at 8:57am

      Wow, kinda like U.S. tax policy, penalize the top 5% for the benefit of the others. Why not limit everyone’s bandwidth or upgrade you capabilities?

      Report Post » Sheepdog911  

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