[Updated with AT&T statement below the fold…]
The Federal Communications Commission announced today that it plans to fine AT&T $100 million for throttling data speeds for customers with unlimited data plans. In its complaint, the FCC said the carrier “deprived consumers of sufficient information to make informed choices about their broadband service” which hurt competition…The FCC claims that AT&T misled customers into paying for unlimited data without properly disclosing speed throttling policies which violates the Open Internet Transparency Rule. The formal announcement specifically outlines unlimited data plans offered by AT&T in June 2007 that were later discontinued in 2010.
The problem, according to the complaint, is that AT&T implemented a Maximum Bit Rate Policy on subscribers after offering customers the ability to renew unlimited data plans without properly disclosing the restriction. While advertising “grandfathered” unlimited data plans to customers, AT&T significantly lowered data speeds for these customers after reaching a certain amount of data usage per month as has been widely reported since.
The FCC says its proposed fine of $100 million is “based on the seriousness of AT&T’s apparent violations” as it proposes requiring AT&T adjust its practices to meet the requirements of the Open Internet Transparency Rule.
The proposed fine follows the FTC’s lawsuit against AT&T last year over its speed throttling practices on unlimited data customers. Just as the FCC has proposed the $100 million fine against AT&T over violating net neutrality rules, Time Warner Cable has become the first Internet service provider to face a lawsuit over newly implemented net neutrality rules.
AT&T responded to the announcement saying that it will challenge the FCC’s complaint and that its practices met the FCC’s requirements:
“We will vigorously dispute the FCC’s assertions. 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.”
The carrier also pointed to a detailed filing with the FCC from earlier this year disclosing its Maximum Bit Rate Program’s rollout and implementation.
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That’s just a drop in the bucket (fiscally-speaking) for them but … Yay!
I was thinking the same thing — they break the law and get away with it for a long time, and then pay an extremely small percentage of their net worth as a “penalty” — while at the same time continuing to buy off members of congress so that they can keep doing what they’re doing and fuck over their customers.
Gotta love their excuse too — “all the carriers are doing it” — as if that that makes it OK? What a joke.
How ya like them apples, AT&T?
I really think they could care less, they don’t have to make any restitution whatsoever to the customers they fucked over, and they continue to fuck them over still; 100 million may seem like a lot to the average person, but it’s nothing for s company that is worth as much as AT&T…they are literally above the law, and continue to use their wealth and power to bribe members of government to tilt the rules in their favor.
$100 million is a lot of money, no many how you look at it. If they were greedy enough to throttle, then I am sure this fine hurts a bit for AT&T
So when will they cut us all a check for the months of throttling? lol
If we had a fair system of justice, this would be the end result — if you fuck over your customers, you make direct restitution to them. Not one of the AT&T customers that were screwed over because of this will ever see a dime.
My data was being contanly throttled by AT&T and had to move to a mobile share plan to keep from having my speeds throttled. Most months I kept under 2GB but was still being throttled.
Still not sure why they didn’t ever get sued over not including FaceTime for years or not being able to add a shared line without loosing your unlimited data.
They still don’t allow hotspot on unlimited plans! A bunch of crap!
Throttling my unlimited data plan was my main reason in switching to the family shared data plan. Now I have an unlimited “work” phone data plan and I still get texts from AT&T saying they’re going to throttle me for going over 5GB, so silly!!!
I just love these fines. Not that they didn’t deserve it, but the fact that the consumer is the one affected and the US Government gets the money. Shouldn’t our taxes all go down every time they charge these fines? And we think wireless companies are a scam!?
I think this money should go back to customers like me that got screwed for so long. Not the FCC. My bill is ridiculous. I’m about to jump ship.
The FCC has a specific annual budget. Any financial windfall goes is returned to pay for other debts and expenses incurred by the government, such as pay for soldiers.
Sorry if that was not tongue in cheek, that is just a stupid statement. The FCC is given a budget by congress paid for by our taxes! Have ya looked at your withholding lately!? The really stupid thing is, the government wasn’t injured by the offense. The consumer was! and should have a portion of what we were cheated out of returned. Even shyster lawyers have to give you a portion of what they win for you. So basically, the consumer got screwed twice by AT&T and as usual our own government. By not getting what we were promised but still paying the same amount (I know I didn’t get a refund when AT&T throttled my unlimited plan) AND basically paying the fine for AT&T. Once again, the consumer pays it all. Why would a company be concerned to change or fear the law? But since they are all in the same bed I guess they are reading the same book on the night stand…and “it depends on what your definition of unlimited is”.
In the paraphrased words of The Joker(Batman 1) “this country needs an enema!”
Just got throttled for the first time this week. Complete garbage. My phone is completely unusable outside a Wi-Fi spot. I’m still under 5gigs. I’ve had unlimited data since it was offered and have never gone crazy with it. I do have it for when it is needed like it was this month. What are people to do if there is an emergency and you need maps, or a work specific app? It is dangerous to do this. Unlimited data really just means approximately 4 gigs and then you get cut off to avoid overages. Forget the fact that even if you’re not throttled, your phone is garbage in any high traffic area like a museum or sporting event.
AT&T has been throttling me for going over 5GB until last month when they changed their policy to only throttle in congested networks. I used 35GB in my current billing cycle.
Frankly speaking, if all the cellular network providers in the world providing unlimited data at affordable price, it would be the end of Wi-Fi era. Wi-Fi may eventually turning to a better Bluetooth after that.
I don’t care if I never see a dime of that money but I’m thrilled to see AT&T get what they deserved. Was a grandfathered unlimited user since the original iPhone even though I rarely used more than 1 gig back in those days.
One house remodel project with no internet for a a few weeks and I was throttled 10 days into my billing cycle for going past 2 gbs.
Does everyone understand in reality this helps consumers none? AT&T just completed their purchase of DirecTV so $100 million dollars isn’t much to them, they aren’t being forced to change the practice so you’re just going to end up frustrated to the point you end up abandoning your unlimited plan for a tiered data plan…?
They will just pass that $100 million fine on to the consumer.
Thank you someone who understands the larger picture! It’s unfortunate but this isn’t really something to celebrate for consumers
AT&T’s competitors didn’t commit such crimes and won’t have to pay the fine.
Therefore, AT&T’s competitors will be less expensive and/or more profitable than AT&T.
Any way you look at it, AT&T lost this case and it will cost them, and there is no incentive for AT&T to try to screw its customers again. And their competitors will also know that they shouldn’t try to abuse their customers without a real penalty.
In the end, all US wireless customers have won, as well as all of AT&T’s competitors. AT&T is the big loser here.
I don’t know about anyone else, but I’ve had my unlimited plan since I bought my first iPhone 3G many moons ago. I’ve dealt with the throttling ever since, however, just a couple months ago, I noticed that the throttling has stopped. I don’t know if AT&T is silently removing the restriction, but i haven’t had ANY slow speeds for some time now. Don’t know if im an anomaly, but im enjoying the no throttling lol
They quietly changed their policy last month to throttle only when the network is congested. I’ve used 35GB with 3 days left in the billing cycle.
You can check by dialing *DATA#