Business Bytes
Renee Oricchio

Verizon Prepares For iPhone Datahogs

 

On the same day it started accepting pre-orders for the iPhone, Verizon has introduced "two new network management practices" effective immediately. That's Verizon-speak for limiting data consumption.

Here's are those "two new network management practices":

1. Verizon will be using a new compression technology to move more data more efficiently. It includes optimizing (compressing) video into smaller data streams. Verizon says it may "minimally impact the appearance of the file as displayed on your device".

2. Anyone who subscribes to a new data plan effective yesterday February 3rd, will be subject to having their data throughput speeds limited if they use an "extraordinary amount of data" or fall into the top 5% of data users among customers. If your usage gets curbed, it lasts only for the remainder of your billing cycle. Each billing cycle brings a fresh start apparantly.

It doesn't take a rocket scientist to see this is in anticipation of the coming onslaught of new iPhone users on the Verizon infrastructure. Just look at the timing of the new policies on the same day Verizon started taking pre-orders on iPhones. We've all seen what has happened to AT&T over the past few years. The iPhone has brought millions and millions of new subscribers; however those subscribers tend to use an extraordinary amount of data which has often taxed AT&T's network in a number of cities.

Speaking of yesterday's first day of taking pre-orders. Well, for now, it's also the last day of taking pre-orders.

Both the Verizon and Apple web sites announced it would no longer take pre-orders shortly after eight o'clock last night (Thursday).  No word on how many Verizon iPhones were sold in those hours between 3 am EST and 8 pm EST. But they are sold out for now. No surprises here.

Renee Oricchio is a technology writer and former supervising news producer for CNN Financial News. She has been covering the computer industry since 1987. @oricchio