Top 5% of Verizon Wireless Data Users May Experience Slow Speeds [iPhone 4]

Verizon iPhone 4 Pre-Order

Verizon Wireless and Apple started accepting pre-orders for iPhone 4 beginning today exclusively for Verizon’s existing customers. General pre-orders will begin on February 09 and the CDMA iPhone will finally be available on Feb. 10.

Verizon today notified new data customers about its plans on its Web site and carried a warning as a footnote :

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.

This means that if you fall within the top 5% of data users then Verizon may restrain your speeds in order to maintain the quality of their overall service. It’s clear that Verizon is aware of the fact that iPhone 4 users consume huge amounts of data and this could impact the remaining 95% of data consumers.

Analyst Jack Gold of J. Gold Associates views Verizon’s latest move to limit data speeds as a precautionary step to manage their limited resources in the best possible manner. Smartphone users have a tendency to view desktop version of websites, stream online radio, download videos and apps which can cause serious strain on the network.

While this may be of concern for some users; analysts believe Verizon’s move could soon be followed by other carriers. Smartphones can potentially consume exceptional amounts of data and therefore by targeting the “power users” it may help in reducing the carriers burden.

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