Netflix, Inc. (NASDAQ:NFLX) could Be Limiting Its Data Speed on Verizon Communications Inc. (NYSE:VZ)


The data speed at which the Verizon Communications Inc. (NYSE:VZ) consumers can stream their videos on Netflix, Inc (NASDAQ:NFLX) seems to have been capped in some circumstances. A number of users have increasingly reported poor network speeds when downloading Netflix videos. However, Netflix spokesperson has denied the claims saying they are not restricting their data speed for any mobile networks.

With Net Neutrality still fresh in the minds of many people in the US, the idea of Internet service providers prioritizing or deprioritizing their data network for payment does not go well with many Americans.

Verizon has tried to side with the upset customers of the Net Neutrality as many of its subscribers are swiftly reporting a speed limit of 10 Mbps for the Netflix Data and some have even reported that the same is happening on the YouTube data speed as well. The speed cap happen when one is watching Netflix or undertaking a speed test on Netflix.

The best way to confirm if Netflix stream data is restricted is by testing the network on any speed test systems such as the Speed Test, Open Signal or others and then compares the outcomes with the test.

A good number of Verizon Wireless customers may not experience the network interruptions or restrictions. Until both companies provide concrete explanation of the situation, it’s still early to point fingers at any company.

Last year, Netflix acknowledged that for a long time, it had secretly put a cap on the maximum data connection speed for AT&T and Verizon Smartphone customers. Their reasoning was that most users were connected to tiered data plans and Netflix wanted to save them from incurring higher phone charges. Later, Netflix launched quality controls in their apps to give users more options over their data usage.

Verizon and its competitors AT&T and T-Mobile also include some ‘throttling’ or optimization on their users’ unlimited data offerings when downloading video. But Verizon has never indicated that it would put a limit on their video streams network speed for its unlimited users.