“The FCC said that it is fining AT&T $100 million for misleading mobile customers about its “unlimited” data plans,” David Goldman reports for CNNMoney.
“AT&T subjected its unlimited data plan customers to significantly slower speeds after they used more than 3 GB of 3G data or 5 GB of 4G data in a single billing cycle. AT&T then failed to adequately notify its customers that their speeds would be throttled after they crossed a certain data threshold, the FCC said,” Goldman reports. “AT&T stopped offering unlimited data plans to new customers in 2009, but some customers have been grandfathered into the old plans. In 2011, AT&T instituted a ‘maximum bit rate’ policy, capping speeds at about a half megabit per second for heavy data users (compared to around 15 Mbps to 20 Mbps for typical 4G download speeds, the same as a home broadband connection).”
“AT&T says it will fight the fine,” Goldman reports. “‘We will vigorously dispute the FCC’s assertions,’ said Emily Edmonds, spokeswoman for AT&T. ‘The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it. We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirements.'”
Read more in the full article here.
MacDailyNews Take: AT&T unlimited data customers, has your data been throttled?
SEE ALSO:
As Apple’s iPhone launches, Verizon throttles bandwidth of top 5% of data hogs – February 3, 2011
“this practice as a legitimate and reasonable way to manage network resources”
It is indeed, but not letting us know is legitimate, is that simple.
It is not. it all about getting rid of “unlimited” to force customers onto higher priced plans.
Another way of doing that is simply to no longer grandfather unlimited plans.
No one let me know of any throttling as I recall, but then on the other hand, despite rather heavy usage for the past several weeks, I have yet to detect any throttling. When my home internet went out and severely degraded, I switched to my iPhone 6Plus using its data plan and was surprised to get faster streaming on my phone than on my home internet. Not even a hiccup…and it doesn’t matter if I am at home or driving. Hey, this is great…
AT&T says it will fight the fine
And you’ll lose again. Lousy company.
Who do you think is going to pay this fine? Not AT&T. They will pass the $100 Million on to their customers, along with a $10 million interest charge due to the appeals they will exhaust before they wind up having to pay it. Like taxes, which corporations do not pay (their customers pay them in the price structure — I’m speaking wearing my economist hat, now), this fine will be structured into AT&T’s future price increases for handsets, data, air time, etc. A fine of this type is merely another name for an ad hoc tax.
Agreeing, I don’t know what would be a superior alternative. Ideally, this decision does punctuate AT&T’s dirty doings to their customers and potential customers.
Actually, thinking about similar decisions, why not directly distribute that money directly the AT&T customers? I’ve been part of two class action lawsuits from which I received some meagre compensation. That distribution takes something on the order of forever! But eventually some token arrives at the victim’s end. It is entirely absurd to have the government chomp down on the money and blow it on paying down their accumulated debt, etc.
Hmm. So how about AT&T victims sue the US federal government for the money? That could happen! 😉
The problem I see is that AT&T currently has around 125 million wireless subscribers and of those, probably 100 million have data plans. That means that each customer would be entitled to a refund of $1. It would cost AT&T about $3.50 to send out a business letter (standard cost to customize and send business letters for any business, including 37¢ bulk rate first class postage) to send a $1 refund check. That could total almost half a billion dollars to effectuate the payment of the fine to subscribers! Perhaps AT&T could find a way to do it for less, maybe cut the costs to a third or quarter of a billion dollars, but usually legal things like this have to be done with a personalized letter or postcard through the US mail. . . and that’s just assuming ONE mailing. It usually takes three: one to offer a legally required opt out, a second to explain the settlement, and then the payment check. LOL!
Happens to me. Go over 5GB of data in a billing cycle and my speed drops from around 34Mbps to around 0.48Mbps.
yes yes yes
and I hate it
ATT CEO seen crying in the corner after $100 million fine: “This isn’t fair, I want my mommy! . . . No, hold that, get our lobbyists on the phone !!!”
…and let’s get going on recovering those expenses!
The FCC has screwed us former iPhone 1 owners who are grandfathered into unlimited data. AT&T will simply eliminate this plan now. They only kept it this long as a courtesy and incentive to stay with AT&T.
They had so many restrictions anyway that I transitioned to Family Plan: throttling, no tethering, no hotspot, no text. Now my entire family have iPhones with enough data, unlimited talk and text (which isn’t too important). All devices can hotspot through all phones, and still a lot cheaper than separate plans. Now, if AT&T could just get customer service; oh well, they ARE one notch above Comcast.
Oh its the FCC’s fault is it….AT&T cannot get rid of unlimited grandfather plans especially now. Because of the FCC.
Nope. Read the fine print. They weren’t fined for throttling. They were fined for not adequately informing unlimited customers of how they throttled.
AT&T has already changed this. This fine is for past behavior.
Personally I gave up my unlimited plan as soon as I got throttled and ended up with a sweet 30GB plan with rollover for the price of 15GB (during their double data promo).
I have watched my speeds drop dramatically. It’s like it drops to slower than Edge speeds (yeah, remember that shit).
$100m fine. Or as AT&T would categorize it: “cost of operation.”
$100M is too low. Unlimited should mean unlimited.
AT&T Unlimited* Data!
* 5GB
AT&T is the reason I didn’t get an iPhone until the iPhone 4. And I am professionally an Apple consultant.
AT&T is the reason that the ampersand has been added to the alphabet – so that its name could be recognized for the 4-letter word it is. I will NEVER voluntarily do business with AT&T, and may they pass into history as soon as possible.
Truthfully, I’d like to “Throttle” AT&T
I’m certain of it. All these companies need to be fined BIG TIME! Refunds should be given to customers as well.
Although I’m grandfathered in unlimited, I can’t tell if I have a throttling problem ’cause I’m using WiFi most of the time.👻
That’s the irony. I think most people who have unlimited data plans are using less data than what would be available on a cheaper plan… plus tethering.
MDN-
Not tech proficient enough to know if I have been throttled or not. How does one find out?
But what I do know, as an iPhone early adopter on day one 2007, my unlimited plan has been grandfathered in.
Been online to track my data usage for years and only once went over 3 GB one particular month while on an extended vacation.
Got a call from an AT&T employee informing me if I continue to use over 3 GB my service speed would be slowed down.
Mentioned I have an unlimited data plan and should not be penalized in speed for using it. Also reminded her, an AT&T customer since my first cell phone in the early 1990s.
She went on with canned suggestions on how to use the phone more efficiently while cutting down data usage. For my benefit, or AT&T?
Again, have no clue if I have been throttled. But clearly, this lawsuit has merit for some customers.
If guilty — pay up …
I have been throttled by AT&T
Yep – happened to me recently as well. Was throttled for the remainder of the current billing cycle as soon as I went over 5GB. Was pretty unusable as a result.
What irks me is the fine is being collected by the gov’t and not by the people who got throttled or paid the monthly fee’s….
Not enough. Hit them for a half billion. ATT is like Snowden … a low life piece of shitescum.
Yes, AT&T throttles – more than that, AT&T disables hotspot features for customers with the grandfathered plans.
In essence, what AT&T is telling me is – “find a different carrier” instead of “let’s switch you to a ‘better’ plan” – I’m already close to having Verizon or t-mobile lined up, now that the iPhone 6 (and beyond) are finally true carrier agnostic world phones.
Sure has
AT&T –
“We will vigorously fight for our right to screw our customers.
They are our customers after all.”
For less than $44 per month pre phone, we switched to the Walmart Straight Talk plan. Unlimited voice calls, unlimited texts, and 3G data before throttling. Only downsides are 1. no hotspot, 2. crumby pre-iPhone voicemail.
Customers sign up for unlimited data plan. Customers pays for unlimited data plan. Customers ripped off by AT&T. FCC fines AT&T. FCC keeps customers money. Customers ripped off by FCC. Classic.