Data plan throttling: A simple consumer choice mechanism

Despite only a small portion of unlimited data plan users experiencing throttling each month, it is a prominent source of complaints from users and a significant concern for mobile network operators. We propose a simple mechanism that allows users to choose when they want their data transmission “fast,” and when they want it “slow.” Users still have the same cap on total high-speed transfer before being throttled, and hence may still be subject to throttling, but now they are given some control. We propose a basic model of payoffs, and demonstrate that the proposed mechanism would be preferable to the user over the throttling policies currently in place. We then consider the impacts that extend beyond a single user, and provide a framework for determining the aggregate effects of such a mechanism.