Netflix officials have stated that, for the past five years, videos have been capped at 600kbps for AT&T and Verizon subscribers, a transfer rate that's far below the average download speed of LTE networks in the US. According to Netflix, the reason for this throttling is the preservation of monthly data allowances.
Netflix has also confirmed that it is not capping the quality of its videos on T-Mobile and Sprint, two carriers that adopt more consumer-friendly policies. The nation's third and fourth largest carriers limit the speed of data transfers when subscribers eat through their monthly data allowance, instead of charging overages fees like Verizon and AT&T do.
On T-Mobile's network, Netflix videos are capped to a lower quality only for those customers which have activated Binge-On, the carrier's controversial zero-rated video streaming program that allows customers to stream movies from approved providers without the data being counted towards the monthly quota.
Looking into the future, Netflix officials also stated that the company is working on a mobile data saver option that would allow users to stream Netflix videos in a data-friendly way.