[Xoom General] KidJoe:
I've seen mentions of Data Throttling in this thread... I haven't seen throttling from VZW yet on their smart phone data plans.

And if you read the Terms of Service (TOS) for VZW's Smart Phone Data plans, there is NO CAP expressed. However, there is for VZW's tethering plans!!

I've read the "bits are bits" and "Data is Data" arguments, along with "I can use a router on my home internet, so why can't I..." But if you read the TOS Agreement you signed when you got your Verizon Smart Phone and its associated "Unlimited Email & Web for Smart phone" data plans, you'll see that Tethering is expressly prohibited, as is setting up a server, or doing something that impacts the quality of service provided to others, and many other things.

Even the plan name suggests the data is for use on your SMART PHONE, and has limits of Email and Web and it isn't called "Unlimited data for smartphones"

I'm sure the wireless carrier's sat down and say.. Ok, using the web browser on an Android phone with its web kit browser and all its available apps uses more data than a feature phone. We need to spend money on making sure our network can supply the data per our customer agreements (ok, maybe AT&T forgot to do that, but most would agree that VZW didn't) and they put in the number of cell towers with the right amount of back haul to do it. They figure that based on their TOS, and rules a smart phone can consume roughly X gig per user per month and build their data networks to support that... Now, they can sell it as "unlimited" which sounds better to the consumer, or sell it as a X Gig CAPPED data plan. Which do you like the sound of more?

Ok, so people start hacking their phones and tethering PC's for FREE, using their tethered cell phones as their only internet service without paying VZW for the service they SELL, and are now using more per month than originally estimated when they built their network. Verizon now has to make changes to its network to keep the supply of data flowing (more towers which need land and FCC approval, more backhaul, etc) or they can let their network go to crap... The upgrades will cost them money, right? Do you think they are willing to eat that profit and see their stock price fall due to lower profits?

Since there are implied and specified limits in the TOS, maybe "unlimited" shouldn't be used in the name. But in this case, its talking about no limit to the amount of data you can use from your phone while staying in VZW's TOS. It doesn't mean you can do unlimited things with it.

As wynand32 said earlier... Its Verizon (or your wireless carrier's) service. So they set the rules which are clearly defined in the TOS the customer signs when entering their service contract.

Just like your home internet provider has the right to chose to allow soho routers and not charge per computer in the service they provide/sell, the wireless carriers have the right to decide that tethering via your phone isn't included for free and will be charged for as a separate service.

In my area, for my data plan, comcast has a CAP of 250gig per month. And there are months we have EXCEEDED that. Imagine if I used tethering on my cell phone to do the same things. What would that do to Verizon's network? Or the cost of Verizon providing me that service?

Do the cable providers give you ALL the channels or features/services for free? No, they have tiers, packages, add-on features. For comcast, you want sports tier, you PAY MORE for it. So with Verizon, you want "tethering" you pay MORE for it.

That being said.. T-Mobile does include tethering in the data plan of my blackberry FOR NO EXTRA CHARGE. Does that mean Verizon must? No.

Want to justify "free tethering" because VZW charges too much for it? Ok, well the record store sells CD's and Bluray discs but they are too expensive, so should it be ok for me to take one or two as I see fit? I think not. Or keeping with the cable company analogies.. Comcast charges too much for HBO so I should be able to hack my cable box and get it for free. After all, I'm paying for cable anyway and they are sending the channel to my box, just scrambled. I don't think that would go over too well.

Fact is... Verizon has had these clauses in the TOS for a long time now, and now it appears they are going to start enforcing them. The free ride is over and we have to deal with it, or switch to carriers that have TOS and prices that match what we want/need to do.

But I think there is more to this story that just the tethering enforcement.

We've already seen VZW lower the 30day worry free to 15 days.

What is coming next?

What about returns on bricked Android phones due to attempts to root, load 3rd party kernal or ROM, leaked roms, or some other hacks? And trying to prevent losses VZW or the phone maker take there because those types of things aren't covered under the MFG's warranty.

And you can bet that VZW's motivation is to cut losses in order to maximize profit for the stock holders, or to have more cash on hand to support their LTE network build out.