First, you'll need to reach 22GB of data in a month before your speeds can be throttled, because this plan offers "premium unlimited 4G LTE data".
Starting Wednesday, Verizon will offer two variations of its unlimited plan: a budget $75 per month "Go Unlimited" option with AutoPay and an $85 per month "Beyond Unlimited" plan (again, with AutoPay). All changes take effect beginning August 23, 2017. "These plans give you the best unlimited choices, but you also get what only Verizon can give you: the best network, the best rewards program, the best way to manage your plan with the My Verizon app and the best selection of phones and devices", wrote Verizon in a press release. Basic subscribers may also be subject to throttling in congested network areas, while this will not happen on the pricier plan until the customer has exceeded 22 GB in a month.
Subscribers who actually want to see high-definition video can get bumped to 720p on phones and 1080po on tablets in an $85 plan - the same video quality you now get for $5 more than you're now paying. Additionally, if you're watching video content on the network, it's throttled to 720p on a smartphone and 1080p HD on tablets.
The Verge has a good granular breakdown of what the new data plans mean, but the main sticking point is that on smartphones, video quality won't rise above 480p, and on tablets it won't go above 720p. Mobile hotspot speeds are capped at 600 kbps. Video streaming is throttled down to 720p on a smartphone and 1080p on a tablet.
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The limitations to the cheaper plan only apply to data use.
While this sucks for Verizon customers, competitors also throttle video. This limit will affect mobile hotspot usage as well. Verizon claims that there's no visible quality boost between 720p and 1080p on a smartphone, and that's actually fairly true - a 1280×720 resolution screen on a six-inch panel is Retina quality at 14 inches. The big difference is that you can no longer stream at 1080p on Verizon Wireless phones anymore. Rivals AT&T and T-Mobile already have a similar tiered offering.
The carrier explains its move to Ars Technica as "managing our network" in a way that lets bring unlimited data "to more people". Current Federal Communications Commission chairman Ajit Pai has been a well-documented opponent of net neutrality and has made reversing policies from previous chairperson Tom Wheeler a major focus during his appointment.