Validas: AT&T Throttling of Unlimited Plans Makes No Practical Sense

[jpkjeff]

Interesting study by Validas that essentially says AT&T's policy of throttling "top" data users has no benefit to their network (other than lining their pockes, of course):

 

Source: http://blog.validas.com/blog/2012/02/17/why_throttle/

 

As the national news media has reported, three of the Big Four wireless carriers are engaging in Unlimited Data Plan throttling, ostensibly as an effort to free up network bandwidth. Going from lightest to harshest, T-Mobile is very transparently throttling over 5GB of data used, which corresponds to a very small portion of users. Verizon Wireless and AT&T, on the other hand, are utilizing active throttling techniques aimed at the top 5% (in terms of the amount of data used) of unlimited customers. Verizon Wireless will reduce speeds as minimally as possible, for as little time as possible based on geographic network load. AT&T will heavily throttle back for the remainder of a billing cycle based, similarly, on geographic network load.

The question remains, however, why throttling is necessary at all. In other words, are the carriers throttling because of wild and crazy unlimited users hogging enormous bandwidth or are the carriers throttling as essentially a tactic to get grandfathered unlimited users to hurry up and sw

itch to tiered data plans?

As you can see from the graph below, extracted from a sample of over 55,000 2011 cell bills, this does not appear to be an issue of data hogging. When we look at the Top 5% of data users, there is virtually no difference in data consumption between those on unlimited and those on tiered plans—and yet the unlimited consumers are the ones at risk of getting their service turned off. So it’s curious that anyone would think the throttling here represents a serious effort at alleviating network bandwidth issues. After all, Sprint gets by fine maintaining non-throttled unlimited data to its customers.

S

[pyroscott]

I don't believe Verizon is staying true to the "Verizon Wireless will reduce speeds as minimally as possible, for as little time as possible based on geographic network load."

First they said that they only throttle on 3G then they said as minimally as possible, but I know someone on the grandfathered unlimited plan and once he hits 5 GB on LTE he is throttled the rest of the billing cycle. I forget what he is throttled to, but as soon as the first day of his billing cycle rolls around, he is back to around 30 mbps.

[jpkjeff]

I've heard similar stories from people on Verizon, despite the fact Verizon claims their throttling is much less intrusive than AT&T's and will only be used if the tower being used by a "heavy" user is currently congested (however, like AT&T they still refuse to give any concrete specifics on what, exactly, constitutes a "heavy" or "top" user of data nor what the throttled speeds will be reduced to.

[irev210]

It's all about trying to get overages back on peoples bills.

 

Carriers miss the days of going over minutes or texts... so now they are turning to data.

 

They count on people being stupid opting for a cheaper upfront data package and then going over those limits. It's annoying.

[pyroscott]

It's all about trying to get overages back on peoples bills.

 

Carriers miss the days of going over minutes or texts... so now they are turning to data.

 

They count on people being stupid opting for a cheaper upfront data package and then going over those limits. It's annoying.

 

Exactly. Overages are pretty much free money to the carriers. The tiers are the best way to limit usage(and abuse)/make extra money/create (percieved) better customer service when they refund overage charges.

[BenChase7]

http://phandroid.com...tled-data-pain/

 

Somebody took the so called "unlimited" to court... and won (for now).

 

Edit: looks like att (they don't deserve caps) is so pathetic they're going to appeal an $850 court ruling against them.

[lynyrd65]

att (they don't deserve caps)

 

Epic