The FCC ruled today that T-Mobile has been throttling customers on its ‘unlimited data’ plans after receiving complaints from customers.
T-Mobile agreed to pay $48 million to settle the FCC’s investigation which discovered ‘the un-carrier’ slows down data speeds of the top 3% of its heaviest users during times of congestion without notifying customers that they were being throttled.
[contextly_auto_sidebar] “Consumers should not have to guess whether so-called ‘unlimited’ data plans contain key restrictions, like speed constraints, data caps, and other material limitations,” said FCC Enforcement Bureau Chief Travis LeBlanc. “With today’s settlement, T-Mobile has stepped up to the plate to ensure that its customers have the full information they need to decide whether ‘unlimited’ data plans are right for them.”
Divvying up the money
The $48 million settlement includes a $7.5 million fine plus $35.5 million for a consumer benefits program. The other $5 million will go to providing equipment and services to American schools. T-Mobile CEO John Legere took to Twitter this morning to announce the “good settlement.”
Glad we could help schools with this solution as well. #loveit #customersfirst https://t.co/6Pc4UIJh3s
— John Legere (@JohnLegere) October 19, 2016
The settlement effects both T-Mobile and MetroPCS customers. T-Mobile has agreed to either stop using the term “unlimited” for its plans or provide clear and conspicuous disclosures about all restrictions.
Customers effected by the data throttling will receive an additional 4GB of data under the “Simple Choice MINT” plan. Subscribers can also get a 20% discount (up to $20) on phone accessories.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
One response to “T-Mobile to pay $48 million for throttling unlimited data plans”
Will all carriers have to stop saying “unlimited” then? They almost all throttle their heaviest users.