Verizon: Unlimited Data Plans Will 'Run Out of Gas'
by Karl Bode 02:23PM Tuesday Sep 24 2013 Tipped by Bill Neilson
T-Mobile and Sprint continue to slowly make inroads in their battle against the wonder twins of wireless (AT&T and Verizon), in some part due to their continued dedication to unlimited wireless plans. Trying to pour some cold water on their momentum, Verizon CEO Lowell McAdam stated that sooner or later, both companies will give up on their unlimited offerings and join Verizon and AT&T in only offering metered plans.
"If you are allowing unlimited, you will run out of gas. It's physics," McAdam told attendees of the Goldman Sachs Communacopia Conference in New York today.
T-Mobile and Sprint have historically argued that spectrum limitations have less to do with "physics," and more to do with AT&T and Verizon squatting on spectrum with the intent of inhibiting wireless competition. Verizon has long denied
such charges, but finds themselves in such a rich spectrum position they've had the luxury of not having to seriously focus on Wi-Fi offloading to ease network constraints.
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Most lte towers operate on a gig carrier wan with load balancing. The same connection most CMTSs use. The amount of data that would have to pass through a tower to make it unsuable is so ridiculous that its unreasonable to even fathom it crippling any network.
Then you think about how many towers are nearby and you realize this is smoke and mirrors. The csu dsu at the end of the wan manages the gross amount of users just fine, as its designed for 70 percent of the maximum amount of subscribers in an area to operate at max bandwith before it suffers.
In theory all active users would have to be uaing the connection before it would cripple anything, with load balancing you would get a slowdown of the connection long before it was unusable and at that you would still get 3g speeds.
So BS corporate fear tactics. However i dont expect the ceo of a telecom to understand data encapsulation or load balancing, Or what the customers want.