Verizon's Mobile Video Won't Count Against Data Caps -- but Netflix Will (arstechnica.com)
Earthquake Retrofit writes: Ars Technica has a story about how Verizon Wireless is testing the limits of the Federal Communications Commission's net neutrality rules; Verizon has announced that it will exempt its own video service from mobile data caps—while counting data from competitors such as YouTube and Netflix against customers' caps.
Let's hope that the FCC shows that its net neutrality enforcement has teeth.
Doesn't this prove by example that there is no last mile scarcity on Verizon's wireless network? The reason for limits on wireless has always been this bottleneck, transit costs over fibre are small, if not free for a tier 1 provider. These costs are easily covered by a cellphone agreement. What is the IP transit cost for a 95% average line that does 2GB a month to Verizon $.05?
With this move, Verizon is demonstrating that caps are unnecessary. With this evidence, one might even argue that caps are an arbitrary and capricious with the sole purpose of extorting money from customers and content providers.