Verizon announced on Wednesday that it is cancelling its plans to "throttle," or slow down, the internet connection(s) of customers subscribed to unlimited data plans during peak hours.
The telecom giant revealed the planned policy in July detailing that the top five percent of data users of the unlimited data plans will start experiencing slower speeds during high demand hours to optimize network traffic in the area. The controversial policy caught the attention of the U.S. Federal Communications Commission (FCC) and demanded to explain its intentions to slow download for customers who are still using older unlimited data plans.
Verizon added that the company decided to implement the so-called "Network Optimization" to prevent congestion for the rest of the users. It also clarified its difference from "throttling," which reduces the data's download speed during the entire bill cycle. With the new policy, speed is reduced only during high-demand hours. Those who would like to avoid the new policy have been advised to switch to a usage-based data plan.
The Wall Street Journal also reported that FCC chairman Tom Wheeler said in a conference last month that the agency is looking to apply net neutrality rules to wireless networks if Verizon pushes through with its throttling plan.
On Wednesday, Verizon confirmed that it is cancelling the policy after experiencing pressure from the regulators. The company submitted an explanation letter to FCC Chairman Tom Wheeler citing other wireless carriers that have the same policy, but the FCC remained adamant, according to the Washington Post.
"We've greatly valued the ongoing dialogue over the past several months concerning network optimization, and have decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans," the company said.
Wheeler commended Verizon's decision.
"I salute Verizon Wireless's decision," Wheeler said. "This is a responsible action and I commend Verizon's leadership on this issue."
