Verizon Wireless has fired back at the Federal Communications Commission, saying it did nothing wrong with the data throttling, or slowdowns, of its 4G LTE unlimited data subscribers. Verizon’s response comes as a reply to a letter from FCC Chairman Tom Wheeler, who criticized the expansion of its data throttling policies.
In a letter dated Aug. 1 to the FCC, the Verizon Communications Inc. (NYSE:VZ) subsidiary rebuffed Wheeler’s concerns while defending its throttling practices as a way to manage its network.
“Rather than an effort to ‘enhance [our] revenue streams,’ our practice is a measured and fair step to ensure that this small group of customers do not disadvantage all others in the sharing of network resources during times of high demand,” Verizon wrote in response to Wheeler’s letter to Verizon Wireless CEO Daniel S. Mead, according to Recode.
“'Reasonable network management’ concerns the technical management of your network; it is not a loophole designed to enhance your revenue streams,” Wheeler wrote to Mead on July 30.
Verizon also pointed out in its letter that it had already implemented its throttling policy with 3G network users three years ago. However, under this new policy, 4G LTE subscribers under older, grandfathered unlimited data plans would also find their speeds throttled if connected to a cell tower experiencing high demand starting Oct. 1. Verizon also argued that its competitors, mainly AT&T (NYSE:T), T-Mobile (NYSE:TMUS) and Sprint (NYSE:S), were engaging in similar throttling practices.
Continue Reading Below
Speaking to reporters on Monday, Mead said Verizon was surprised by the FCC’s remarks.
“We were very surprised to receive that letter," Mead said, according to CNET. "There were many parts that were incorrect. We have great respect for the FCC, but I'm not sure the chairman understood what we're doing exactly.”