More recently, the Verge reported that Verizon Communications Inc. (NYSE:VZ) Wireless seemed to be throttling video and today, the firm appears to have come clean. The company implicitly acknowledged of capping the traffic, accusing the matter on a provisional video optimization test.
A Verizon Wireless spokesperson reported that they have been performing network testing over the previous few days to improve the performance of video applications on their network. The testing should be done shortly. The consumer video experience was not impacted. This is a weird statement, apparently referring to something entirely different from what consumers actually witnessed. What consumers experienced wasn’t optimization, but a clear cap, with assessments from Netflix’s speed-test instrument demonstrating measurably lower rates compared to non-Netflix tests.
While Netflix was the single service to showcase a speed-test device producing measurements, it now seems that similar caps were put to all video apps on the Verizon Wireless network. A follow-up statement from a Verizon executive took issue with this publication, terming it “dead wrong” and mentioning that it makes no sense.
The representative mentioned that they are constantly checking the network. It’s what they do, to improve performance for their clients. The check was across the board, and didn’t target any specific applications. The representative validated that a 10Mbps cap was in offering for some users. The customer video experience should have been unfazed by the test since 1080p video marks as HD quality and looks remarkable at 10 [Mpbs].
Those clarifications appear consistent with a wide the-board throttle on video platforms, put in place without disclosure to consumers. It’s valid that, as pointed out in initial article, many customers would not be able to see 10Mbps limit on their video speeds. However, if that is what Verizon Communications means by optimization, then it appears an awful lot like the controlling scenarios net neutrality supporters have been cautioning about for years.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.