

What is Bandwidth throttling?
Bandwidth throttling is the intentional slowing or speeding of an Internet service by an Internet service provider (ISP). It is a reactive measure employed in communication networks to regulate network traffic and minimize bandwidth congestion. Bandwidth throttling can occur at different locations on the network. On a local area network (LAN), a system administrator ("sysadmin") may employ bandwidth throttling to help limit network congestion and server crashes. On a broader level, the Internet service provider may use bandwidth throttling to help reduce a user's usage of bandwidth that is supplied to the local network. Bandwidth throttling is also used to speed up the Internet on speed test websites.
Throttling can be used to actively limit a user's upload and download rates on programs such as video streaming, BitTorrent protocols and other file sharing applications, as well as even out the usage of the total bandwidth supplied across all users on the network. Bandwidth throttling is also often used in Internet applications, in order to spread a load over a wider network to reduce local network congestion, or over a number of servers to avoid overloading individual ones, and so reduce their risk of the system crashing, and gain additional revenue by giving users an incentive to use more expensive tiered pricing schemes, where bandwidth is not throttled
2. Throttling vs. capping
Bandwidth throttling works by limiting (throttling) the rate at which a bandwidth intensive device (a server) accepts data. If this limit is not in place, the device can overload its processing capacity.
Contrary to throttling, in order to use bandwidth when available, but prevent excess, each node in a proactive system should set an outgoing bandwidth cap that appropriately limits the total number of bytes sent per unit time. There are two types of bandwidth capping. A standard cap limits the bitrate or speed of data transfer on a broadband Internet connection. Standard capping is used to prevent individuals from consuming the entire transmission capacity of the medium. A lowered cap reduces an individual user’s bandwidth cap as a defensive measure and/or as a punishment for heavy use of the medium’s bandwidth. Oftentimes this happens without notifying the user.
The difference is that bandwidth throttling regulates a bandwidth intensive device (such as a server) by limiting how much data that device can accept or receive. Bandwidth capping on the other hand limits the total transfer capacity, upstream or downstream, of data over a medium.
3. If I have a 4mbps line why do I not get 4mbps when doing a speed test?
We won't go into huge detail on this but the estimate for the average Wireless packet headed for the Internet is that it is carrying about a 16%-20% overhead. That means that if you for example run a speed test on a 4mbps wireless line (4096kbps) that a result of around 3.4 - 3.6mbp is actually perfectly normal.