AT&T to throttle ‘very small minority’ on unlimited data plans starting October 1

AT&T today released the following statement, verbatim:

An Update for Our Smartphone Customers With Unlimited Data Plans

Like other wireless companies, we’re taking steps to manage exploding demand for mobile data. Many experts agree the country is facing a serious wireless spectrum crunch. We’re responding on many levels, including investing billions in our wireless network this year and working to acquire additional network capacity. We’re also taking additional, more immediate measures to help address network congestion.

One new measure is a step that may reduce the data throughput speed experienced by a very small minority of smartphone customers who are on unlimited plans – those whose extraordinary level of data usage puts them in the top 5 percent of our heaviest data users in a billing period. In fact, these customers on average use 12 times more data than the average of all other smartphone data customers. This step will not apply to our 15 million smartphone customers on a tiered data plan or the vast majority of smartphone customers who still have unlimited data plans.

Starting October 1, smartphone customers with unlimited data plans may experience reduced speeds once their usage in a billing cycle reaches the level that puts them among the top 5 percent of heaviest data users. These customers can still use unlimited data and their speeds will be restored with the start of the next billing cycle. Before you are affected, we will provide multiple notices, including a grace period.

This change will never impact the vast majority of our customers, and is designed to create a better service experience for all.

The amount of data usage of our top 5 percent of heaviest users varies from month to month, based on the usage of others and the ever-increasing demand for mobile broadband services. To rank among the top 5 percent, you have to use an extraordinary amount of data in a single billing period.

There will be no changes for the vast majority of customers. It’s not how much time you spend using your device, it’s what you do with it. You can send or receive thousands of emails, surf thousands of Web pages and watch hours of streaming video every month and not be in the top 5 percent of data users.

Typically what puts someone in the top 5 percent is streaming very large amounts of video and music daily over the wireless network, not Wi-Fi. Streaming video apps, remote web camera apps, sending large data files (like video) and some online gaming are examples of applications that can use data quickly. Using Wi-Fi doesn’t create wireless network congestion or count toward your wireless data usage. AT&T smartphone customers have unlimited access to our entire Wi-Fi network, with more than 26,000 hotspots, at no additional cost. They can also use Wi-Fi at home and in the office.

The bottom line is our customers have options. They can choose to stay on their unlimited plans and use unlimited amounts of data, but may experience reduced speeds at some point if they are an extraordinarily heavy data user. If speed is more important, they may wish to switch to a tiered usage plan, where customers can pay for more data if they need it and will not see reduced speeds.

But even as we pursue this additional measure, it will not solve our spectrum shortage and network capacity issues. Nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near term challenges.

Source: AT&T

61 Comments

  1. funny they can’t say what the limit is? OR give bandwidth figures?

    And of course they leverage their buyout of t-mobile with these new plans to throttle bandwidth.

    what a crock of shit.

    1. Spoken like a true member of Generation E… otherwise known as the “Entitlement Generation”…

      It’s no wonder that we hear comments like this when our parenting has been focused for the past couple of decades on teaching kids that the world revolves around them.

      1. Shinolashow raises a valid issue. We are not talking about any entitlement. I pay for unlimited Internet access on my iPhone, and have been since day one. By any reasonable definition and expectation of a regular consumer, there exists no logical cap on “unlimited”

        If you want to claim entitlement, do so in favor of the companies that do the bait and switch or outright false advertising as is the case here. I am entitled to what I pay for. I and many others pay for unlimited. And unlimited has no cap by definition.

        1. What you say is true, but AT&T is entitled to stop offering a truly unlimited data plan, and they are under no obligation to let you keep your original plan forever. Believe me, I’m no fan of AT&T! But it is unreasonable for genuine bandwidth hogs to expect unlimited to mean “the sky’s the limit”. The world just doesn’t work that way.

        2. While I agree with the sentiment of your message I disagree one one important thing: if the company will sell a service under the false pretense, then they should be held accountable. Otherwise they are stealing money from customers.

          If you are selling me an unlimited service, an I pay extra money to get it under the assumption that it will be unlimited, and it then turns out you didn’t really mean to offer me that, I will hold you responsible to either provide me with such service or offer restitution. If AT&T changes the definition half way through my contract, I better have the right to at least get out of it without penalty.

        3. It’s not false advertising. The plan is still unlimited. Just because they slow down the speed does not change the fact that you can continue to use it at no additional cost.

          What kills me is all the AT&T haters; everyone who is hones knows that Verizon does the same thing and has said as much, but they can get away with it because of their mindless drones.

        4. The real world and bytes are not the same thing. ATT has redefined bandwidth so as to suit them increasing costs to the consumer while parading a fake shortage so they can pocket profit as opposed to capital investments to improve their service.

          And you are taking their word about bandwidth hogs… you know that right? Do you think there are as many iPhone users in a small town as a city such as SF or NY? Yet- they get the same increases.

          I could go on and on- but some people default to some idea that bandwidth is like pizza slices. The insidious outrageous element of this press release is the insistence on their t-mobile buyout to alleviate this so-called “bandwidth crisis” You couldn’t possibly get any shadier.

        5. … to change the terms of the agreement, but they cannot change the definitions of the words used. “unlimited” must mean “unlimited – without limit” or it becomes “fraud”.
          They should a) change the name of the plan (high usage?) and (AND!) define the maximum extent of usage – the “limit” – allowable. Do these two things and they get a free pass. Of course, if they do not continue to allow users of the “unlimited” plan “unlimited” bandwidth at the same price, then they must allow them to either change their plan or end their agreement without penalty. After all, it wasn’t the USER who changed the conditions of the contract.
          I really have to wonder, though, at how much bandwidth these folk are using! AT+T said “You can send or receive thousands of emails, surf thousands of Web pages and watch hours of streaming video every month and not be in the top 5 percent of data users.”. How many hours of squinting are these people willing to subject themselves to in order to break into this club?
          I do not have a “smart phone”. Do not WANT one. Am strictly a vaguely interested by-stander.

        6. I totally agree with you and millions of others. We all elected “Unlimited Data” for a reason, we needed it! Now they are going to punish us and strong arm us into changing to a plan that we have to pay more for!?!?! What’s up with that??? I am going to call them every day over and over and over until they get tired of dealing with me. I want what I paid for, UNLIMITED DATA!!!!! Perfectly said btw iRobot! I couldn’t agree with you better and perfectly stated.

      2. spoken like a true tech-tard patsy who wouldn’t know a bit from a byte from the sound of their own moronic voice.

        ATT loves people like you- so I guess that’s cool.

        1. Aw c’mon, we all know there’s no way in hell you could ever get a real woman. You just keep on humping that inflatable and livin’ the dream shino.

      3. Actually, it’s a contract. AT&T has made an offer that people accepted, to provide unlimited data.

        By definition, unlimited means not limited.

        If they start limiting, that’s a breach of contract.

        I hope to see a class action suit.

        1. Obviously you’ve never read your AT&T contract: “AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network, including without limitation, after a significant period of inactivity or after sessions of excessive usage and (ii) otherwise protect its wireless network from harm, compromised capacity or degradation in performance, which may impact legitimate data flows. You may not send solicitations to AT&T’s wireless subscribers without their consent. You may not use the Services other than as intended by AT&T and applicable law. Plans are for individual, non-commercial use only and are not for resale. AT&T may, but is not required to, monitor your compliance, or the compliance of other subscribers, with AT&T’s terms, conditions, or policies.”

        2. We could sit here and go back and forth all day. What I’ve been noticing is that the people who don’t have an unlimited Att plan are the ones that say we are whiners and such. I have had my unlimited plan from almost day one and I have put up with Att’s crappy service, dropped calls and such because I have that data plan. But what some people are forgetting is all those months or years we paid that extra $30 a month when other chose not to. Unlimited is unlimited, not reduced or capped. Or what ever Att wants to call it. I have done nothing wrong. I have not jailbroken my phone and shared my data with 10 of my friends. That would be abusing my data. YouTube and netflix does eat data, no denying it. But I live out in the sticks so I don’t have that option to use wi-fi to reduce my data usage. When a class action kicks off you can count on me jumping on.

    2. I measured it. The clamp is 1/25th of your normal bandwidth. I checked a non-clamped iPad against a clamped iPhone in a building that was an AT&T pop site. We get 5 bars here all the time. The clamped iPhone is getting 90kbps down. That is a denial of service, and a HUGE breach of contract.

  2. I have a unlimited plan with AT&T. And from what I take from my bill, I am no where near the ” Top 5 Percent of Heavy Data Users”. It has me thinking that if the can do this to the top 5 percent, what is going to stop them from throttling my data. They say the 5 percent of those whose uses extraordinary level of data. What is this extraordinary amount? I don’t know but it sounds fishy to me. My unlimited data plan is the only thing keeping me with AT&T. If Sprint should ever get the iPhone, I am jumping to Sprint.

    1. +1

      I left Spring ONLY for the iPhone and I will go back to them once they have it. AT&T has always had disdain for the very people who make possible their existence…their customers.

  3. The implicit agreement between ATT and the customer with respect to an “Unlimited” plan is that for a set price, the customer may use an “Unlimited” *amount*of data. AFAIK, there’s nothing in my unlimited contract that says ATT can’t deliver that data at a certain *data rate*.

    My only beef with this is that if ATT is going to throttle by policy, then they owe it to their customers to communcate specifics with regard to the exact data use thresholds that trigger the throttling, and an idea of how much the data will be throttled.

  4. You always have the 10 percent that screws everything up for the other 90 percent. Alway entitled and yelling details until the 10 percent negatively effect them. Then they scream how they have to change so as not to cause the 10 percent grief.

    As a member of the 90 percent, the gravey train is over. Complain all you want- but the top ten percent should pay more since they use more. Broad band is limited and celluar data is no different Stop clogging up the freeways of data and share the lanes with others.

    1. Once again, it is not about entitlement in the way you understand it. As you yourself say, the top ten percent should pay more since they use more. I already pay more for unlimited, and now my quality of service will go down. I am entitled to it only because I pay more. Otherwise, this is stealing!

  5. Three Points: 1) The wireless network operators are shameless scum, including AT&T. The network is easily the worst (in fact, the only bad) part of using an iPhone.

    2) The FakeSteveJobs rant on AT&T remain as valid and relevant today as it was back in 2009; check it out here: http://www.fakesteve.net/2009/12/a-not-so-brief-chat-with-randall-stephenson-of-att.html

    3) Eventually, Apple needs to buy a network and make it as good as their products. I suspect many, many people would pay a reasonable premium for insanely great wireless service.

    1. Ralph M says:
      “3) Eventually, Apple needs to buy a network and make it as good as their products. I suspect many, many people would pay a reasonable premium for insanely great wireless service.”

      Let’s hope (as I continue to believe) that this is the true reason for Apple’s mighty cash war chest.

  6. I have three words for AT&T: Class Action Lawsuit

    I alos have news for the rest of you: AT&T has been throttling some activities since last summer.

    Initially, the MLB App ran live game videos quite nicely on the iPhone 4. But midway through last summer (of 2010), AT&T began throttling the connection to the MLB servers. Live video became terribly pixelated, slow and unwatchable, and it’s been that way ever since.

    So much for net neutrality and a big “thanks for nothing” goes out to the U.S. Congress. I could understand that AT&T might need to limit bandwidth temporarily — while they catch up with network expansion in the wake of the smartphone revolution. But the cellular phone companies are adding bandwidth at an unacceptable snail’s pace.

    Or, rather than over selling their network capacity and screwing existing customers, another temporary solution might have been to throttle cellular phone sales so that AT&T could fulfill existing contract obligations. Or, AT&T simply could invest in new infrastructure at a faster pace.

    1. Your proposed law suit has no legs to stand on, read your g-d contract: “AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network, including without limitation, after a significant period of inactivity or after sessions of excessive usage and (ii) otherwise protect its wireless network from harm, compromised capacity or degradation in performance, which may impact legitimate data flows. You may not send solicitations to AT&T’s wireless subscribers without their consent. You may not use the Services other than as intended by AT&T and applicable law. Plans are for individual, non-commercial use only and are not for resale. AT&T may, but is not required to, monitor your compliance, or the compliance of other subscribers, with AT&T’s terms, conditions, or policies.”

      1. A contract that is written in such a way so as to negate the terms at any time and without any notice is an invalid contract. No court would consider a clause in such a contract to be valid.

    1. but no no! We are spoiled children who feel entitled! We should miser our data usage and be good american consumers!

      slaves to the corporate class!

      If you think ATT is right- you should take a hard long look in the mirror and realize you know nothing about technology and they are taking advantage of that.

      There are many many more issues that ATT brings up as gateways to our pathways to knowledge and this is just one of them.

      IF you don’t come out of your ignorance shell and learn about bandwidth, use your noggin to critically think- then well- I have my ways of getting around the dumb ass walls they put up to pen your thoughts in- but you don’t and won’t – and deserve everything you get contained in.

      Good Luck!

  7. I think the fair way to do unlimited, considering that there really is just so much bandwidth to go around, is to throttle back speeds on a tower-by-tower basis. If one tower starts to reach its bw limit, it slows down so it won’t saturate. I believe that most of the time everyone will be able to use whatever they want at full speed. (Except maybe NY or SF)

  8. AT&T knows that, as soon as the new iPhone OS is out there with cloud integration, that 5% is going to grow to 10 and 15 REAL quick. They’re trying to prevent another PR black eye where everyone’s complaining about their service ESPECIALLY since folks have a choice between Verizon and AT&T.

  9. If you go to an all you can eat restaurant and one table of big guys is consuming most of the food- you would be upset. The restaurant manager might even ask those patrons to leave because those few hogs are ruining the dinners of everyone else.

    AT&T isn’t asking them to leave, just to slow down when they reach normal limits.

    1. And how ’bout the guy with an ass the size of a tractor tire who sits next to you on the airplane? Sure, seats are too small, and we can all demand that the airlines enlarge them, but that means even higher prices for everyone. And you can bet that that lard bucket will feel he’s entitled to a bigger seat for the same price. When I read that some users apparently consume AT&T signal as if it were broadcast TV, expecting to stream BASEBALL GAMES without trouble, then it is easy to expect that they be made to pay for an extra seat, or some such arrangement. Should they rebel, none of the afflicted would miss them If they go elsewhere.

    2. Except that AT&T is running a scam to gouge customers and the bandwidth “crisis” they’re using as a justification has no basis in reality.

      Read mackaybell’s link for a quick primer.

    3. No not slow down. Slow down would be cut the throughput in half, or limit throughput to a certain amount each day. The speed is 25 times slower than a non-clamped connection! That is a denial of service, and is a breach of contract, even for a limited plan! Their highest tier is 2 gigabits. That is not even one downloaded HD tv show! What is the point of selling me an ATT iPad and then telling me I cannot download TV shows? Well the points is, to sell me as little as they can, and charge me as much as they can for it.

      Goodbye ATT. I only need to be screwed once against my will to abhor the offender.

  10. It really doesn’t matter if AT&T really does have bandwidth crisis or doesn’t. What matters is if a small percentage of users, who use HIGH BANDWIDTH (i.e. stream at 1.5 – 3Mbps at all times) is clogging the pipes for everyone else.

    AT&T is NOT limiting the unlimited. You will still get all the data you can eat. The only difference is, that data is NOT going to be coming out of the firehouse all the time; occasionally, you’ll be getting it from a small tap.

    1. I was warned last month after my wifi was accedently turned off and I got to 4.2 gigs
      I was throttle down this month after just 2.1 gigs.
      I signed a two year contract for unlimited data, now they limit how I use my phone and they won’t let me out of my contract.

      This is illegal!

      I will gladly join a class action law suit!

  11. You guys know that big companies like AT&T pay people to go through and add comments to support their greedy actions, right? Because let’s be real…what consumer in their right might would take AT&T’s side on this.

  12. AT&T is so shady. It’s no wonder Consumer Reports ranks them as the worst mobile carrier for the second straigh year. AT&T never said unlimited data at 2G speeds. In fact, AT&T touted “3G UNLIMITED DATA PLANS”. I started a new contract one year ago with no mention of possible throttling down to 2G speeds. This deceptive practice has no place in business and there can be no defense for AT&T here. When I sign my contract, tell me right there that I have to choose a tiered data plan. Don’t offer me the unlimited plan and then change it half way through the contract! Pathetic!!!

  13. Anyone ever measured what the throttle percentage is? I did. The normal theoretical throughput for 3g service is upwards of around 3 Gigabits, but it wouldn’t be fair to measure against that, so I checked the throughput on my unclamped iPad against my clamped iPhone.

    The results were astonishing. It’s not 25% or 50% or 200%. Oh no, it is 2500%!!! This is tantamount to a denial of service, and has to be addressed. My throughput is 90kbs. That is less than modem speeds!

    So if a “very small percentage” of cell users are going to be affected by the throttling, how again is it going to have a dramatic effect on the overall bandwidth?? That is a rhetorical question. The clear answer is, it won’t, but what it WILL do is PUNISH THE OFFENDERS! How do you like being punished by a company you signed a contract with for actually taking full advantage of your contract?

  14. Here’s what’s going on, my father in law is a big wig at Apple.
    You all need to report this problem to Apple. They are aware and lawsuits are in the works.
    You can be warned of throttling by using as little as 2.1GB of Data a month. However if you are on the unlimited plan your phone will stop working efficiently unless you turn your wifi OFF, hence increasing your data, and then they can boot you because they have messed with your service and are forcing you to up your data! This is why you need to report problems to Apple.
    Hang on to that unlimited plan as long as you can, because everyone is filing a lawsuit against them. AT&T is a predictor company, however Verizon is following suit! We have no options but to fight.

  15. Everyone with the unlimited plan is effected, they can not get any money out of us, they need to get rid of us. We are not measured in the top 5% of everyone using data, just the top 5% of unlimited users.
    They just raised the rates of the tiered people this week. You know since we have no way to measure data use a lot of those people will go over, just like back in the days when we went over and had $400 cell bills… Wink wink nod nod

  16. We all no that it’s about money and greed! I have been a loyal customer for years. Now my I phone sucks. Thanks for crappy service at best. I look foward to finding a new cellular company that values its customers.

  17. I don’t know if there is some fine print that allows them to interpret unlimited as not really unlimited, but I think one line of attack is to throttle down based on a percentage. A user has no way of knowing if he is in or nearing the 5%, and also no way to audit or verify that after the fact. It is completely new ground compared to signing up for a plan based on advertised speeds, then knowing what you are paying for, then seeing a bill which you can dispute if not correct. Basing it on a percentage I bet could be successfully attacked.

  18. AT&T’s move obviously has nothing to do with conserving bandwidth and everything to do with cashing in on data. If conservation was the issue, why has there been a constant stream of yet more and more devices that specifically use AT&T’s 3G network? I don’t fault them for trying to make a buck, but this whole deal screams of lead pipe intimidation. “Do what we want or suffer the consequences”. I’ve been a customer with AT&T for years. I didn’t complain when had to stand in the middle of a field to get a signal because AT&T’s service was crappy here. I didn’t complain when they literally had 3G service on Mt. Everest before they had it in my area (yes, they really did have 3G on Mt. Everest before they had it here), and I was paying more than practically everyone else for a service I couldn’t use from my home. Now that they have FINALLY managed to get 3G service to my area, I’m being punished for using it. I wouldn’t mind paying a reasonable increase for my service, there is such thing a supply and demand, but what they’re offering us is the difference between a Porsche and a rusted out roller skate, missing 2 wheels, and at 3 times the cost we’re paying now.

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