F.C.C. to Fine AT&T $100 Million for Slowing Data Speeds of internet users

F.C.C. to Fine AT&T $100 Million for Slowing Data Speeds of internet users

The Federal Communications Commission said it plans to fine AT&T Mobility $100 million for misleading customers about its "unlimited" mobile data plans

Reason for fine - the carrier "severely" slowed down the data speeds for customers with such plans unlimited data plans

AT&T failed to adequately notify its customers that they could receive speeds slower than the normal network speeds AT&T advertised, the FCC said. AT&T's actions also violated the FCC's 2010 Open Internet Order, a set of rules that regulate telecom service providers' conduct

If customers used more than 5 gigabytes of data for the month, the carrier slowed its data transmission speeds to levels that made using mobile apps difficult or impossible

AT&T began offering unlimited data plans in 2007, according to the F.C.C., and in 2011 it began capping data speeds for consumers enrolled in unlimited plans who had already exceeded a certain amount of data in a single billing cycle, a practice known as throttling. That capped data speed, the agency said, “Significantly impaired” users’ access to the Internet, delivering service that could be 5 percent of the expected speed. The agency’s investigation found that the average customer experienced slower service for 12 days each billing cycle.

According to the FCC, this affected customers' ability to do things such as stream video or use Global Positioning System (GPS) mapping services.

The FCC's action follows a lawsuit filed by the Federal Trade Commission in October, charging AT&T for allegedly violating the FTC Act by failing to adequately disclose the throttling of unlimited data plans. The case is still ongoing.

“Unlimited means unlimited,” Travis LeBlanc, the F.C.C.’s chief of the enforcement bureau, said in a statement

It is the largest fine ever levied by the Federal Communications Commission.

In October, AT&T agreed to pay $105 million to settle claims it billed wireless customers for unauthorized charges for services including horoscopes, ring tones and love tips. In May, Sprint Corp. and Verizon Wireless agreed to pay a combined $158 million to settle similar claims.

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Saturday, June 20, 2015

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