Use SlingBox, Get Your EVDO Terminated

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Thursday, 01 June 2006
Verizon has started enforcing their Terms of Service. While not targeting a specific application, instead, they are canceling users who use more than 10GB of bandwidth in a single month. The terminations are on the unlimited data plans.

Many are heavy users of the SlingBox, a device that allows you to stream your Tivo/TV/Cable box directly to your laptop or PDA. When you stream over EVDO, you can use incredible amounts of bandwidth to wath a 30 minute show.

Since, EVDO is a shared bandwidth technology (just like Cable internet), the more people that are watching their SlingBox, the greater impact it can have on other users, who happen to be on the same cell tower.

What Verizon is doing, is either a brillant move or the dumbest thing possible, only time will tell. It is brillant, because all the "bandwidth" abusers will be kicked off and most likely go to Sprint. Other users in specific areas, will see increased benchmarks, as more bandwidth is now available. So many existing (and new) users will be much happier.

However, what about those terminated users. They are very angry. The current Verizon practice, is to give them 1 or 2 days notice (and in some cases, they get 'the letter' after their service has been canceled). Those angry users, are going to take their business to Sprint and if they have cell phones, probably take that business too. The problem for Sprint, they now have the "bandwidth abusers" on their network, and now some of their towers and users will start felling the performance hit. Bandwidth at towers is not unlimited, it is fixed, so as more people do bandwidth intensive activities, other users will feel that pain.

Time will tell, what happens next.

This practice may not be limited to Verizon, there is one report of Sprint doing the same thing on EVDOforums.com. Also, this practice may not be limited just to SlingBox, but also having huge downloads and other type of streaming.

Here is a smarter way for Verizon/Sprint to handle the bandwidth issues

First, don't just terminate users. Give them a warning first, so they can change their activities. Maybe, many walk into a store and buy the 'unlimited' and have no idea what they are doing is wrong. Give them at least one warning letter first.

Instead of selling "unlimited" accounts, tell the users, they get xxGB per month and after they hit that amount, automatically throttle the account back to dial-up speed. The account will still "work", but it will just work slower once you hit the a large amount used. Some satellite service does exactly this once you hit 7.5GBs in a month. Also, make this clear to your customers. Another approach is to have a different price level for those that really need "unlimited". For some business users doing VPN or server support - it doesn't matter the cost - it is a matter of life and death - give them the option of connecting and using what ever they need.

Join the heated and lively discussion at some of the EVDOforums posts below.

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Last Updated ( Monday, 25 September 2006 )
 
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