When you watch a Netflix movie on your AT&T and Verizon Wireless, a lot of bandwidth is consumed. Verizon and AT&T are both trying to convince Netflix to pay for the bandwidth that their customers use when watching movies from a connection on their network. Netflix is now giving iPhone customers an option to turn off cellular access to Netflix completely to rely on WiFi for watching movies and TV shows.
Since these telecommunications companies are moving customers off of old unlimited data plans and moving them into tiered data buckets, streaming video comes at a major cost. In Netflix’s iPhone and iPad app update, customers can toggle 3G/4G connectivity on and off. This will prevent you from accessing Netflix eveywhere, but it could help you avoid overage charges.
There are still several unlimited options that exist like Sprint’s 3G network. There are still several million customers that are grandfathered in Verizon and AT&T’s older unlimited plans, but both companies are going to start throttling speeds once customers hit a certain threshold.