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November 15, 2007

The Changing Face of Verizon Wireless's Terms of Service

After Verizon's recent settlement with New York State over its BroadbandAccess service's limits, I've been watching its terms of service (TOS) change: I've written about Verizon Wireless's TOS for cell data for a few years, because it's the most restrictive and most ridiculous in the industry. No longer. Partly as a result of the settlement with Andrew Cuomo's office in New York, and I think partly due to the competitive nature of services that don't impose the same limits, the TOS has morphed into something that offers relatively decent disclosure and full limits.

I used the Wayback Machine at the Internet Archive to examine previous TOS's to compare. Back in January, the TOS had the terms I have poked fun at for years: unlimited service can only be used for Internet browser, email, and intranet access. Explicitly prohibited uses include running servers; continuous uploading or streaming of audio, video, or game content; and using the service in place of a dedicated line, like a DSL connection. Peer-to-peer uses were banned, too.

This TOS has the incorrect example that someone would use "more than 5 GBs in a month" if they used the service continuously for 10 hours a day, seven days a week. Actually, that would be more like 50 GB. Using the service at full capacity for an hour a day would hit 5 GB, so it's a very low limit. This TOS had the egregiously offensive line, "Anyone using more than 5 GB per line in a given month is presumed to be using the service in a manner prohibited above," which is part of what got them in trouble in New York.

(I had thought that Verizon barred VoIP, but a check with the company confirmed that that restriction was dropped by 2006.)

These TOS terms didn't change through August, when the Wayback Machine loses track, but they did change after the New York settlement. When I wrote about the New York settlement on 23-Oct-2007, the bad calculation was still in place. Two weeks late, on 05-Nov-2007, language about throttling appeared. When I checked a few days ago, it had changed even further: the bad calculation was gone as was a threat of cancellation. Gone, too, is the restriction about streaming, uploading, or downloading. They still treat the line as not a fixed broadband replacement, and they added descriptions of disruptive network activities that aren't allowed, even though one would expect that those would already be a problem.

In terms of excessive use, they simply state now that using more 5 GB per billing period (which lasts a month) could result in them throttling your maximum download speed to 200 Kbps. They also provide reporting of your current usage, so you can see where you're at.

Now, as a consumer, you can read this and decided whether paying $60 to $80 per month for unlimited service is what you need. Sprint Nextel and AT&T both have less restrictive language, and apparently a lower level of enforcement. T-Mobile, with its 2.5G EDGE network, has generated no complaints I'm aware of from customers accused of misuse of the 100 to 200 Kbps unlimited service.

Part of my interest with mobile WiMax is whether restrictions are lifted on even more categories of use. Clearwire intends their service to be used as a wired broadband replacement--that's been their model all along. If WiMax costs the same, has faster speeds (as I found in my testing this last week with the Clearwire PC Card), and fewer restrictions than cell data, there's an audience that might make an informed decision about which network to choose.