This is the company that threw away four-billion dollars on that foolish T-Mobile deal. Nobody at AT&T cared about that, and they care even less about this fine. But that is their problem: they don't care!
1
AT&T's response in this article is such baloney! If throttling had anything to with managing their network, why isn't it applied to ALL users instead just those on "unlimited" plans? How is it that they have plenty of capacity to sell as many tiered data plans over 5gb/month as they can, but not enough to provide more than 5gb/month to their customers on "unlimited" plans? It doesn't take a tech genius to see right through that "argument."
And BTW, I just received another throttling warning text on my phone! They're clearly shaking in their boots.
And BTW, I just received another throttling warning text on my phone! They're clearly shaking in their boots.
3
Lots of comments from early adopters like me who have had their plans for 7-8 years. We are the victims.
None of the reporting here or elsewhere, that I've seen, mentions that AT&T has not offered this plan for some time; that we early adopters are grandfathered in and simply roll over our contracts since day one; and that there is no caveat presented, when we renew contracts year after year, that reflect the new policy as of 2011, of "unlimited.... until 5GB. Then you're incapacitated."
Its a lie by omission that AT&T tells to retain customers. You know you've been lied to when your phone suddenly morphs into something close to a brick. Thank you FCC for pointing that out.
None of the reporting here or elsewhere, that I've seen, mentions that AT&T has not offered this plan for some time; that we early adopters are grandfathered in and simply roll over our contracts since day one; and that there is no caveat presented, when we renew contracts year after year, that reflect the new policy as of 2011, of "unlimited.... until 5GB. Then you're incapacitated."
Its a lie by omission that AT&T tells to retain customers. You know you've been lied to when your phone suddenly morphs into something close to a brick. Thank you FCC for pointing that out.
A $100-million fine will hurt AT&T only emotionally.
Why not fine AT&T something like $1- or $2-billion? That would hurt AT&T emotionally and materially, as well as putting a solid scare in others who might consider such devious moves?
Now, others will take their chances on getting a $100-million fine or not getting one.
Why not fine AT&T something like $1- or $2-billion? That would hurt AT&T emotionally and materially, as well as putting a solid scare in others who might consider such devious moves?
Now, others will take their chances on getting a $100-million fine or not getting one.
1
Corporations don't have emotions, Mitt
I have Clear brand unlimited data (now owner by Sprint, and being shut down over the next few months) and they do the same thing, at least as much as that 'notice' link in the article describes. Will the FCC fine them as well? It really seems like cherry picking to only fine one company. That being said, unlimited data plans are now nonexistant. The ATT Mobility plan is not unlimted, if you read the fine print, and no other carrier offers a truly unlimited plan. Regulators should be more concerned with encouraging competition to get some carriers to offer truly unlimited plans, rather than fining carriers and essentially giving a stamp of approval to the status quo--as long as it's not falsely advertised.
2
My nephew is grandfathered in on unlimited, unthrottled 4G data from Verizon Wireless. As long as he doesn't buy a new Cell / new contract from Verizon Wireless , he can continue with his old plan, so he pays full price elsewhere for new Cells, which he then uses with his grandfathered Verizon Wireless Plan.
Although Verizon Wireless no longer offers new unlimited data plans, it continues to honor grandfathered plans. I've been able to continue with my grandfathered 4gb /month unthrottled Verizon Wireless plan, even when getting a new, free Samsung Galaxy and new Contract from them.
I live in NY, and often travel to CT and NJ. Verizon Wireless charges too much, but they do deliver the unthrotted speed they claim to, everywhere I've been, except for West Virginia, where data is unavailable and I where I joke WV must still be using the Telegraph key.
Although Verizon Wireless no longer offers new unlimited data plans, it continues to honor grandfathered plans. I've been able to continue with my grandfathered 4gb /month unthrottled Verizon Wireless plan, even when getting a new, free Samsung Galaxy and new Contract from them.
I live in NY, and often travel to CT and NJ. Verizon Wireless charges too much, but they do deliver the unthrotted speed they claim to, everywhere I've been, except for West Virginia, where data is unavailable and I where I joke WV must still be using the Telegraph key.
Tmobile has always slowed things down when you were nearing a data plan cap, but since Friday, it now informs you by including a special message when you go on line to check. I think they should send an email as well.
AT&T notified its unlimited customers multiple times months in advance of this change. For the FCC to be shocked, shocked by this development is disingenuous best.
I've had unlimited data since the very first iPhone, and this plan is significantly more expensive than limited data plans. I don't come close to using all the data but want the option in case there's ever a reason I'd use it, like streaming Pandora on a road trip. Whether or not I use it all is up to me. If AT&T is actually limiting my ability, they ought to refund me based upon the data I actually used, back from day one.
3
AT&T is not the only one which misleads customers with the data price. Others also show their data prices with UNLIMITED WITH an asterisk and a few wireless companies do not even put an asterisk at the end of the price (figure).
2
Thank you Tom Wheeler. Sorry I doubted you'd listen to the people.
The Republicans trying to do congestion prices and their usual scams and routines to sqeeze pennies of profit.
We have to keep the noise up on this---they don't understand that it won't be tolerated, in the monopoly areas we're now forced into which already must be accepted. Are we not supposed to have noticed??
The Republicans trying to do congestion prices and their usual scams and routines to sqeeze pennies of profit.
We have to keep the noise up on this---they don't understand that it won't be tolerated, in the monopoly areas we're now forced into which already must be accepted. Are we not supposed to have noticed??
2
This appears to be a case of interstate fraud. Why is the FBI not involved!?
2
I probably lost close to 1000 hours of computer time, not to mention my work time and revenue as a consultant between 2011 and 2012 bc I could not connect w the internet via my provider, ATT.....They told me all kinds of lies until, finally one of their employees came clean and told me ATT should have never sold me the plan I had bc I lived 8200 ft away from their plant. Only homeowners living less than 6000 ft should have the type of plan ATT deceitfully sold me.
Apparently, this layout was very obvious to any ATT employee, but only 1 of them had the integrity to be honest with me.
I HATE HATE HATE ATT.
What is more amazing is that I live in the heart of Silicon Valley, but only Comcast and ATT are available as providers.
Apparently, this layout was very obvious to any ATT employee, but only 1 of them had the integrity to be honest with me.
I HATE HATE HATE ATT.
What is more amazing is that I live in the heart of Silicon Valley, but only Comcast and ATT are available as providers.
3
There is no ATT service where I live yet they continue to offer new service to unsuspecting subscribers. A senior tech told me the nearby Fort Ord area reception was even worse. Cancelled service and refused to pay the remaining balance. Someone should start a class action suit which sues individual members of management for their deceitful immoral behavior.
Chump change for the thieves. Executive pay for one year is greater than this measly amount.
2
AT&T was never FOR Universal Access. Their whole game was monopoly, limitation, keeping absolutely everyone away from their stuff! Bell started the whole thing as a demanding master to begin with. The first words uttered "over the phone" were a demand from an underling: "Mr. Watson come here, I need you." The whole business was in effect founded upon corporate slavery. It has not changed to this day. AT&T didn't care if you showed up dead; just as long as there was a body in the chair.
2
And what about their called "Roll Over" data plans. Yea, roll over for a month only! Nearly every transaction I have with them is shifty.
2
AT&T still made millions of dollars in unlawful profits, even with the $100 million fine. The fine should have been at least twice as much.
Any other Cell or optical cable providers with similar crooked practices should also be severely fined.
I use Verizon Wireless's limited quantity of monthly data, in my case 4 GB / month max, but I generally use about 2 GB, because I often use WIFI at home, and presumably neither my Verizon Wireless nor FIOS get throttled down. I pay $30 / month to Verizon Wireless for that high speed data, because supposedly Verizon does not throttle down.
I'd certainly prefer unlimited, unthrottled cell data service, and would switch to another major cell provider if they offered unlimited, unthrottled cell data service for no more cost than my Verizon Wireless's 4G at 4 gb per month.
Many if not most of Verizon Wireless's 4G customers who are not grandfathered get only 2 gb per month, while some who are grandfathered get unlimited data. I presume all of Verizon Wireless's 4G customers get unthrottled data, but if it were revealed that Verizon Wireless or FIOS throttled anyone's data, Verizon would lose many, many customers, who pay a premium price for premium service.
So I ask, does Verizon Wireless or FIOS throttle data?
Any other Cell or optical cable providers with similar crooked practices should also be severely fined.
I use Verizon Wireless's limited quantity of monthly data, in my case 4 GB / month max, but I generally use about 2 GB, because I often use WIFI at home, and presumably neither my Verizon Wireless nor FIOS get throttled down. I pay $30 / month to Verizon Wireless for that high speed data, because supposedly Verizon does not throttle down.
I'd certainly prefer unlimited, unthrottled cell data service, and would switch to another major cell provider if they offered unlimited, unthrottled cell data service for no more cost than my Verizon Wireless's 4G at 4 gb per month.
Many if not most of Verizon Wireless's 4G customers who are not grandfathered get only 2 gb per month, while some who are grandfathered get unlimited data. I presume all of Verizon Wireless's 4G customers get unthrottled data, but if it were revealed that Verizon Wireless or FIOS throttled anyone's data, Verizon would lose many, many customers, who pay a premium price for premium service.
So I ask, does Verizon Wireless or FIOS throttle data?
3
The cell phone companies have made it very difficult to get a decent data plan and one that is understandable. This applies to virtually all of them. They want to sell data by the drop, not the bucket or carload. They want to make money every tick of the way.
One of the biggest rips is selling data in small increments, like 100 or 200 megs. That's nothing, but they cell companies are not shy about charging 25 dollars for a small amount of data. I have even seen 25 megs priced at 10 dollars, which would mean one gig could wind up costing $400.
The average user is reported to need about 2.5 gigs per month. The answer to not getting ripped off is to buy as much as you think you will need at the lowest price possible. If you use a lot of data and almost never talk on the phone, Wal-Mart has a deal of 5 gigs per month with 100 min. of talk.
Also, this: choose your data plan before you choose your phone. The monthly charges are going to hit you forever, so get the best data plan suited to your needs and then pick the phone.
Another deceptive practice is to make it very difficult to get a decent rate on using a phone for data or voice overseas. Most cell companies will charge anywhere from 69 cents to 1.99 cents for calls from Europe and elsewhere. Outrageous. Only T-Mobile has a flat fee of 20 cents per minute for monthly customers when calling home. By the way, only T-Mobile and AT&T phones work outside the US without getting a special phone.
1
Where is the single throat to strangle? There isn't one. Effecting change is difficult. I am only one person, but I am one. I can't do everything, but I can do something. I will not let what I can do interfere with what I can do. I often find myself choosing between the lesser of two evils.....I'll stick with Verizon for now.
When Verizon offered an upgraded "faster" service in our area I noticed a considerable "slow down" in my internet access for almost a year in Massachusetts. It just recently went back to what I paid for original FIOS service. I had just begun contemplating going back to comcast when it returned to "almost" original speed. Not just an AT&T issue, too easy to manipulate and profits too easy to gain.
1
...the whole telecom industry was founded on Universal Access ... The present incarnation of AT&T has foresaken that mandate...
6
Yes! ATT is like nature: no morals, it just is. Fairness does not exist. We should never trust the corporations, regardless of what they claim.
1
Not just AT&T, either. A number of wireless carriers throttle data once a threshold has been reached. The Commission may find itself rather busy for a bit.
1
I applaud the FCC for fining ATT. But, while $100 million sounds like a lot, ATT's annual revenue is over $130 billion, and their profit for 2014 was over $70 billion. Compared to this, a $100 million fine is a feeble slap on the wrist. The fine should be perhaps 2% of their annual profit, or $1.4 billion, enough that it would cause them serious pain, and would signal to both them and other large corporations not to abuse the power they have over consumers.
22
Cell phones were a godsend for the traditional phone companies. Just as long distance was becoming cheaper than cheap, they were able to get people to pay by the minute for local calls, something that people almost never had to do previously with landlines.
By the way, if you want to get angry about govt. give aways to the rich, note this: every traditional phone company was given, free of charge, use of airwaves for one full cellular phone system at the start of the cell era. That was worth billions of dollars, one reason that the rich always get richer because the govt. often helps them along. Welfare for the wealthy.
Another note: television stations are being asked to sell airwaves, spectrum, back to the govt. so it can be re-sold for cell expansion. Those television stations get the spectrum for free.
By the way, if you want to get angry about govt. give aways to the rich, note this: every traditional phone company was given, free of charge, use of airwaves for one full cellular phone system at the start of the cell era. That was worth billions of dollars, one reason that the rich always get richer because the govt. often helps them along. Welfare for the wealthy.
Another note: television stations are being asked to sell airwaves, spectrum, back to the govt. so it can be re-sold for cell expansion. Those television stations get the spectrum for free.
While I'm no fan of AT&T, having been an unhappy customer, their 2014 profits were $6.22 billion. That's a lot of money, but a far cry from the $70 billion profit you claim.
The $100 million fine should be enough to make AT&T - and other mobile providers - think twice about slowing data speeds. And, that's just the point the FCC is trying to make.
The $100 million fine should be enough to make AT&T - and other mobile providers - think twice about slowing data speeds. And, that's just the point the FCC is trying to make.
This is the bottom line: I signed up for unlimited data. What dictionary does AT&T use for its definition of unlimited?
11
It's the same dictionary the republican commissioners use when protecting the corporate desire for unregulated business practices.
9
Fillmore: I think it's NOT the same dictionary. The Republicans are pushy about "unregulated" but they don't believe words mean what they say when it comes to "unregulated".
Mr Lyons seems to have limited grasp of dictionary issues. Perhaps, pardonable in a technical professor. Perhaps.
Mr Lyons seems to have limited grasp of dictionary issues. Perhaps, pardonable in a technical professor. Perhaps.
2
You are getting unlimited data.
According to the AT&T contract, the amount of data that you can download is unlimited. The speed at which the data is downloaded is limited (throttled) after a certain amount of data is downloaded .
According to the AT&T contract, the amount of data that you can download is unlimited. The speed at which the data is downloaded is limited (throttled) after a certain amount of data is downloaded .
1
I have at&t... the former southern bell... when the original company still existed,service was far superior and those were analog days...
2
No ... They were just stealing from you a different way.
Back then, you couldn't buy a phone and you couldn't hook ANYTHING up to "their" network. After a decade of lawsuits to prove that it wasn't their network, it became possible to hook up other phones. but then they cost several hundred dollars (Fifty years ago) for a plain black phone. (it was a regulated public utility - What part of "public" did they not understand?) and there was no reason not to hook other things up (like non-Bell telephones)
Ma Bell defined "monopoly" back then and we all paid and paid and paid as a result. Today, the apple has not fallen far from the tree.
Back then, you couldn't buy a phone and you couldn't hook ANYTHING up to "their" network. After a decade of lawsuits to prove that it wasn't their network, it became possible to hook up other phones. but then they cost several hundred dollars (Fifty years ago) for a plain black phone. (it was a regulated public utility - What part of "public" did they not understand?) and there was no reason not to hook other things up (like non-Bell telephones)
Ma Bell defined "monopoly" back then and we all paid and paid and paid as a result. Today, the apple has not fallen far from the tree.
8
He's talking about Southern Bell, one of the many Baby Bells derived from the breakup in the 1980's of the original AT&T 'Ma Bell'.
In NY the original Baby Bell was NY Telephone, which eventually merged with some other Baby Bells to become NYNEX, which merged with other Baby Bells to become Bell Atlantic, which eventually changed its name to Verizon. Yet, Verizon only represents some of the original Baby Bells derived from splitting the original AT&T.
Southern Bell, another Baby Bell, changed its name to BellSouth, but then merged with Baby Bell Cingular, who then changed its name to AT&T. The current AT&T is actually a grouping of those two Baby Bells, using the trade name of AT&T but actually being the corporation AT&T Southeast, but it's not Ma Bell.
Verizon actually comprises a greater percentage of the Baby Bells and of the real Ma Bell AT&T, than does the current AT&T Southeast who uses the trade name AT&T.
In NY the original Baby Bell was NY Telephone, which eventually merged with some other Baby Bells to become NYNEX, which merged with other Baby Bells to become Bell Atlantic, which eventually changed its name to Verizon. Yet, Verizon only represents some of the original Baby Bells derived from splitting the original AT&T.
Southern Bell, another Baby Bell, changed its name to BellSouth, but then merged with Baby Bell Cingular, who then changed its name to AT&T. The current AT&T is actually a grouping of those two Baby Bells, using the trade name of AT&T but actually being the corporation AT&T Southeast, but it's not Ma Bell.
Verizon actually comprises a greater percentage of the Baby Bells and of the real Ma Bell AT&T, than does the current AT&T Southeast who uses the trade name AT&T.
2
I worked in the phone biz for 30 years. Splint. No one seems to remember the "modified final judgment" that judge Harold Green put out (yes, back in the day). AT&T did put service in to all the "rural" areas, and that was subsidized by the Fed. But guess who paid for it? Right! The taxpayers! Hooking up only Bell equipment was a legalized monopoly. I'd better be quiet... the NSA is listening. So is Verizon and so is AT&T (and Verizon came from AT&T, did you know that?)
1
REALLY! Wow theyve been doing this all along?
100 mil. Oy we sure know howta hurtum!
Great job FTC! What would we do without your protective services?
Cheers gene
100 mil. Oy we sure know howta hurtum!
Great job FTC! What would we do without your protective services?
Cheers gene
2
Good for Mr. Wheeler and the FCC.
Does this mean I can sue Time Warner Cable when my Internet speeds fall below what I pay them for?
http://www.speedtest.net/
3
Just what I would expect from an ALEC member.
1
Funny how pages in my browser were loading at what seemed like dial-up speeds yesterday and are back to normal DSL speeds today.
1
Verizon wireless does the same thing but worse. Try browsing the web in mid-Manhattan or many parts of New Jersey and you see what I mean. They all nickel and dime us to the tune of hinders of dollars monthly in overcharge while throttling services regularly.
3
Michael Balmoris is lying. They were not transparent about it and when I caught on to it and asked someone in the billing department they were not clear on what it meant. "Oh no, your plan is still the same unlimited plan."
5
What's a hundred million here and there to at$t or verizon, peanuts, it's worth doing it over and over, they still come out on top. And, they want to make it legal to boot!
1
The fine, alas, is only pocket change for AT$T.
Though it's simplistic in the extreme, I agree with the notion that since corporations are people then some people should go to jail when corporations steal.
Though it's simplistic in the extreme, I agree with the notion that since corporations are people then some people should go to jail when corporations steal.
8
Now I hope they block the merger of ATT and Directv
they should have made att go away all together after they broke it up, instead our stupid morally corrupt govt allowed them to keep merging with all those other companies
they should have made att go away all together after they broke it up, instead our stupid morally corrupt govt allowed them to keep merging with all those other companies
1
Anyone expect Tim Cook and Apple to chastise AT&T like he did to social media recently?? If not then simply another case of hypocrisy.
1
the only thing speedy about my internet service with at&t is the arrival of my monthly bill. i truly dislike this company.
4
And if the Supreme Court hadn't made it virtually impossible for consumers to sue for this very same grievance then this would have happened ages ago with a bigger settlement figure and money distributed to the public (albeit not much).
6
$100 million is a pinprick to AT&T. The fine should be twelve months of free service to all their customers plus firing those responsible. Maybe that would get their attention.
7
This is a losing battle unless there is more competition. In most major markets around the country there are only one or two main providers for Internet and TV service. In the Bay Area we are under the thumb of ATT and Comcast for the most part, they control the infrastructure. They can get away with marketing practices that would be unacceptable in most companies. I was told I could get "up to 24Mbps" in my neighborhood, I signed up for 18Mbps and never got beyond 10-11Mbps on a good day. I upped it to 24Mbps and still get 11Mbps. I can spend hours on support calls and "fixes" which they and I know is an exercise in futility. I wish the FCC good luck but unless they are able to inject more competition, break up these companies or pass a law to make Internet service into a utility like water and power we have to grin and bear it.
2
I have had ATT since I bought the first iPhone. An unlimited data plan was part of the package offered with the first iPhone. Once Apple allowed other carriers to put the iPhone on their systems, ATT began slowing my data. ATT clearly wanted us off their system. We were no longer useful to them. As another commenter noted, they also started to add weird charges to my bill even though I subscribe to their most expensive plan. I agree with the commenters who say $100M is too low. More important, the article doesn't say if the FCC ordered ATT to stop slowing the data. If it didn't, it should.
1
ATT and others can feel the end si coming on data plan cash cows.
In SO Korea you get free streaming free WIFI at 100 mbps on the subway, malls, etc.
In SO Korea you get free streaming free WIFI at 100 mbps on the subway, malls, etc.
5
Dear FCC ..... please look into Suddenlink which does the same thing. I always think of other countries less developed than the USA and the fast speeds they have ..... MANDATED BY THE GOVERNMENT
2
What about those of us who had the Unlimited plan and then were coerced by this practice into choosing a new Limited plan. Do we get the old plan back at the old price? I think I know the answer.
3
Internet companies in general DO slow down service after thresholds are exceeded. The key element is not that they do it; the key element is that they lie about it.
Lying about products and services is the pernicious cancer of capitalism today. When we don't know what we're buying, we have no freedom of choice. We're at the mercy of predatory marketing and advertising.
Lying about products and services is the pernicious cancer of capitalism today. When we don't know what we're buying, we have no freedom of choice. We're at the mercy of predatory marketing and advertising.
6
I too have suffered from this throttling problem from my unlimited data plan. It AT&T is a sushi restaurant, then their unlimited all-you-can-eat plan will consist of 4 sushi followed by a grain of rice delivered every hour afterwards
1
Lucky me. I have GOOGLE Fiber (just the Internet,no TV,etc.) I pay $70/month for service that at its fastest (cable to router) is 940Mbps download/894Mbps upload. My wife's connection on home wifi is approximately half the speed, connected to the same router.
If we have hit a financial soft spot,we can down grade service to 5Mbps for free,and forgo gaming,and only be able to stream one movie at a time.
I said bye-bye to Comcast and Verizon the day we moved in.
If we have hit a financial soft spot,we can down grade service to 5Mbps for free,and forgo gaming,and only be able to stream one movie at a time.
I said bye-bye to Comcast and Verizon the day we moved in.
1
You are way lucky! Come on Google, pls start running that fiber to us in San Jose. I'm dying here at barely 3 Mbps, and usage caps that are ridiculous. When SBC bought Pac Bell, they stopped the fiber infrastructure roll out in the Bay Area, and its sitting there, dead, about 30 feet away from my house. Ahhhhhhh. Come on Googke or San Jose city, the capital of 'Silicon Valley with pure crap access to the Internet.
"You are the AT&T of people!" remains one of the most cruel and smart insults. I will always be grateful to the tv show Community for teaching me that.
They probably all do it and since they are fairly monopolistic should be regulated more carefully. I live within sight of the UC Berkeley campus and AT&T service for phones and internet is horrible. AT&T has run fibre optic cable but does not connect it. They offer premium service but that service is unavailable in my area but the sales people keep calling.
1
Good. Equal access to the internet should be considered a basic human right in today's world. Human rights violators should be punished.
1
SERIOUSLY?! $100 Million? I guess they were trying to find the corporate equivalent of sending AT&T to bed without dessert? I used to say all the time that something was going on -- I was paying for faster cable but didn't want their flipping U-Verse package and I swear, I suspected they were doing something like this. (And my kids said I was crazy when you suggest stuff like this is going on -- HAH!)
It's just basic honesty, isn't it? Customers have a right to expect that what they're offered is what they'll get.
Well, fortunately I'm in much better hands with Time Warner :o)
TIME TO JUMP SHIP. BEEN A CUSTOMER FOR SEVERAL YEARS. THIS IS EGREGIOUS.
1
AT&T is deceptive in other ways as well. When I canceled the automatic renewal with 3 days left for a monthly data plan on my iPad, the pop up box clearly said I could use the remaining data until my 30 days expired. However, as soon as I submitted the cancellation, my access to the mobile service was cut off. AT&T still owed me 2 gigs and 3 days.
1
Great.
Now go after Time Warner Cable - which does EXACTLY the same thing, slowing down broadband, in areas of the city where cable isn't concentrated. I live in one such area... am PAYING for 200Mbps service... and getting consistently below 100 Mbps. Just a week ago, I had all of 16Mbps available for use.
I hope AG Schneiderman is paying attention to the bait-and-switch tactics.
Now go after Time Warner Cable - which does EXACTLY the same thing, slowing down broadband, in areas of the city where cable isn't concentrated. I live in one such area... am PAYING for 200Mbps service... and getting consistently below 100 Mbps. Just a week ago, I had all of 16Mbps available for use.
I hope AG Schneiderman is paying attention to the bait-and-switch tactics.
37
Let's go after Verizon too while we're at it!
1
This is one of the best things the FCC has ever done.
43
And if the FCC chairman were not Tom Wheeler -- but someone appointed and controlled by a Republican administration -- this story would not exist and, as usual, AT&T would have gotten away with it -- no questions asked.
44
Here, Here! And would the anti-trust division of a Republican POTUS's Justice Dept. have blocked the Comcast - Time Warner merger?
There are too many voters who insist there's no difference between Republican and Democrat.
There are too many voters who insist there's no difference between Republican and Democrat.
I had AT&T's unlimited data plan but eventually dropped it after they systematically introduced errors into my bill for 5 straight months. I just couldn't spare the 40 minutes every month talking to an (inevitably polite and apologetic) employee - who always removed the charges. It was a form of systematic harassment. I'm on T-Mobile now - the network is just as bad, but at least it's much cheaper!
23
Or, say there's a 5 dollar error. How many people are going to call to argue over $5 every month? Perhaps relatively few, but there's millions to be made from sneaky little obscure charges that a lot of people just don't have the energy to fight.
1
Thats because T Mobile uses ATTs network and resells it to you.
I was a consumer of theirs (when they were SBC) until I learned my lesson in 1997. Great advertiser that never delivers.
Very good. When will the FCC go after Time-Warner Cable for the same offense?
49
It becomes alarmingly normal for the companies to slow down their Internet services. "Unlimited" never means "unlimited" for the customers with "unlimited" data plans.
13
What about Verizon? Are they doing the same thing?
18
While I agree the fine won't really put a dent in the AT&T coffers, how about jail time for the senior AT&T executives who were overseeing these despicable practices. If the CEOs of these huge corporations feared for their own personal freedom, you'd can bet your bottom dollar they'd be extremely conscientious about "doing the right thing".
57
Cuff 'em, and perp walk 'em too!
2
Here's the key in the response from AT&T:
“The F.C.C. 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,” he said. “We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the F.C.C.’s disclosure requirements.”
I've been investigating cellular services for months now. Many company's do say "Unlimited" but with an asterisk, stating that beyond a given amount they reserve the right to throttle speed down to a very minimum.
Since they don't cut it off, is this still "unlimited" ? This technology is amazingly complex, as many services lease different towers from various companies in different locations.
Unlike the absurd usury of bank credit card loans, where they get funds from the Fed and don't lend it with a 25% markup as the tradition, but 250 fold for those poor souls who can't keep current, this seeming fraud could be inherent in this complex technology.
Alrodbell.com
“The F.C.C. 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,” he said. “We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the F.C.C.’s disclosure requirements.”
I've been investigating cellular services for months now. Many company's do say "Unlimited" but with an asterisk, stating that beyond a given amount they reserve the right to throttle speed down to a very minimum.
Since they don't cut it off, is this still "unlimited" ? This technology is amazingly complex, as many services lease different towers from various companies in different locations.
Unlike the absurd usury of bank credit card loans, where they get funds from the Fed and don't lend it with a 25% markup as the tradition, but 250 fold for those poor souls who can't keep current, this seeming fraud could be inherent in this complex technology.
Alrodbell.com
16
Wow Al Rodbell, you are either a paid AT&T rep or extremely gullible.
AT&T set 5gb as the magic number at which point it started throttling unlimited plans. So if throttling data use was a network management requirement inherent in the technology, then how has AT&T been able to offer an endless number of data plans to its customers far in excess of 5gb?
The inner workings of the technology may be complex, but it doesn't take a genius to see through this "argument."
AT&T set 5gb as the magic number at which point it started throttling unlimited plans. So if throttling data use was a network management requirement inherent in the technology, then how has AT&T been able to offer an endless number of data plans to its customers far in excess of 5gb?
The inner workings of the technology may be complex, but it doesn't take a genius to see through this "argument."
"Since they don't cut it off, is this still "unlimited"?
Put it this way: if they throttled down down to TEN bits a second, they could STILL claim they offered "unlimited" data -- it would just take years to download your stuff.
Put it this way: if they throttled down down to TEN bits a second, they could STILL claim they offered "unlimited" data -- it would just take years to download your stuff.
If this had anything to do with AT&T needing to "manage" its network, then why is it that AT&T needs to throttle its "unlimited" customers once they reach 5gb but can offer data plans far in excess of 5gb without needing to throttle those plans ever.
It doesn't take a genius nor a full understanding of the complexities of the technology to see through this "argument" by AT&T.
It doesn't take a genius nor a full understanding of the complexities of the technology to see through this "argument" by AT&T.
100M? That's it? From 2012-2014, AT&T has average annual net income of $10 billion per year. The fine is 1/100th of its net income. How about it disgorging all its net income from its mobile unit starting from the day that it started this practice?
Until our government starts to make these penalties much higher than the businesses' potential profits, this type of practice will continue with all the big businesses.
Until our government starts to make these penalties much higher than the businesses' potential profits, this type of practice will continue with all the big businesses.
39
Well said! Because SCOTUS has taken away consumers' right to bring a class action to get that money back, the FCC now has a duty to fill that gap by imposing MEANINGFUL fines instead.
100 million is chump change for AT&T. When I worked for a well known computer store, we regularly sold AT&T smartphones as upgrades to people who already had AT&T plans. Tacked on to each upgraded plan was a $36 "upgrade fee". A gift from AT&T for being a loyal customer. I often thought about how many AT&T phones were being activated at the moment I was performing an activation, often at least 10 others in my store alone. How many at that moment across the nation, not only in the stores but in AT&T showrooms as well. How many in a day, a week??? Multiplied by $36 for no delivered service at all, just an upgrade. Criminal. One of the fruits of deregulation and the trickle-down that it was supposed to have spurred.
34
Good! Glad the FCC is getting after these cable and broadband perps like AT&T and Verizon!
Some of the most price-gouging, anti-consumer companies on the planet! (And let's thrown in Comcast there too!)
And they want MORE of a monopoly?
Some of the most price-gouging, anti-consumer companies on the planet! (And let's thrown in Comcast there too!)
And they want MORE of a monopoly?
22
Which brave Republican will be the first to come forward to offer legislation to reverse the FCC's terrible anti-business theft in the form of a fee, and allow AT&T to charge whatever they want and provide whatever suits them? I mean they are the job creators, right?
Sorry, "This brazen anti-business theft, and interference with an American citizen's God-given right to form a contract!" I didn't read the talking point memo clearly enough.
Sorry, "This brazen anti-business theft, and interference with an American citizen's God-given right to form a contract!" I didn't read the talking point memo clearly enough.
8
You can move to TMobile without penalties.
7
This also serves as a slap in the face to Apple from AT&T. Apple iPhones for years were only available on AT&T plans. Apple would be wise to distance themselves from AT&T now. Apple's most loyal customers were the one's that got their bandwidth throttled by AT&T for years.
25
I am a grandfathered unlimited data subscriber to ATT. I have received a notice that I am nearing the 5Gb cap on my "unlimited" plan. A typical DVD is about 5Gb for one movie. A movie is about 120 minutes long. During a 30 day month if I do absolutely nothing else but watch 4 minutes of a video I am in danger of being throttled. It's criminal.
62
I think, generally speaking, Internet access on smartphones is the most expensive way to connect. Is it possible to watch your movie with the phone on wifi?
The problem is corporate executives confuse thievery with being clever. This is why the "out of the box" saying makes my skin crawl.
31
AT&T has been on a long trajectory of arriving at a bad company practices. They dropped smartphones on the public with come-ons about unlimited data, then when a customer uses data they suggest that make sure they're using wifi on their phone. Of Course they would... wifi is using another server to complete the data transactions. At&t wins again.
8
Since this seems to involve fraud, a much faster and more effective route would have been to have the FBI interview ATT employees from the top down and revisit those that lied with an arrest.
46
The big, bad Federal Government is at it again, abusing poor, little private sector, Mom & Pop AT&T.
32
$100 million isn't nearly enough to change corporate behavior. Start in the billions and adjust upwards for the amount of dollars charged to all customers with unlimited data plans over all of the years this practice was in effect. Every penny was ill-gotten gains and should be returned to the consumer. The FCC can require that the fine be paid by issuing checks to all AT&T customers with unlimited data plans.
51
Is the $100 million distributed those impacted customers with unlimited data plans or does it just go into the FCC coffers?
18
It's odd that I haven't received a throttling notice since the FCC file this complaint against AT&T. That is until this morning at 9:57 when I got the following text "ATT Free Msg: Your data has reached 75% of the 5GB network management threshold. If you exceed 5GB this month, you may experience reduced data speeds at times and in areas that are experiencing network congestion. Wi-Fi helps you avoid reduced speeds. For more info visit att.com/datainfo or att.com/broadbandinfo"
AT&T's motto should be changed to "We're not satisfied until you're not satisfied"
AT&T's motto should be changed to "We're not satisfied until you're not satisfied"
63
$100 Million.. Are you kidding? AT&T can generate $100 million faster than 50 Mbps ...
24
How about a law that terms and conditions are limited to one page and a font size that the average person can read?
42
This is a poor substitute for a class action lawsuit which would have allowed money to go back to the customers who were cheated out of the contractual right to the unlimited data they agreed to. SCOTUS emboldened AT&T (and any other corp) to act in these flagrantly anti-consumer ways when it approved the language in AT&T's customer contracts that takes away those customers' right to sue in class actions. This debacle shows that decision was wrong, and the obvious result was a company cheating millions of its customers out of relatively small sums of money (the exact type of situation class actions address). The FCC's fine is a good step, but won't deter AT&T because, although $100M seems like a big number, it's surely less than AT&T has made through this practice over the last 8 years. The real solution is Congressional action stopping contract fine print from taking away consumers' right to sue in class actions. Of course, Congressional action is an oxymoron these days, so I won't hold my breath or expect anything to change.
25
I will join in a class action suit against ATT if one if formed..
Dolly Patterson
Dolly Patterson
1
"Throttling" of early adopting ATT unlimited plan subscribers was cruel and selfish. We funded the companies initially awful network, and then we were stabbed in the back. The fine is too low.
75
Thank you Tom Wheeler -- at last a Federal agency that looks after its citizens rather than corporations. Well done.
49
It happens to me every month. I'm on a "grandfathered" unlimited plan for which I pay AT&T between $110 and $120 a month. Why it fluctuates is a mystery they have never answered properly.
Usually about a week or so into the billing cycle the slowness in loading web information onto the iPhone 6 is past noticeable - it is outrageous. I do business over my phone and that is why I bought the "unlimited" plan when I did.
I am so happy to see AT&T called out on this. Now, How much do I get of the $100 million dollar fine? It doesn't help those of us who have been robbed to have the FCC fine AT&T unless the money is divided up among all the customers who have been shorted.
It won't happen, I'm sure.
Usually about a week or so into the billing cycle the slowness in loading web information onto the iPhone 6 is past noticeable - it is outrageous. I do business over my phone and that is why I bought the "unlimited" plan when I did.
I am so happy to see AT&T called out on this. Now, How much do I get of the $100 million dollar fine? It doesn't help those of us who have been robbed to have the FCC fine AT&T unless the money is divided up among all the customers who have been shorted.
It won't happen, I'm sure.
43
The only reason I remain with AT&T is the grandfather clause to keep my data service unlimited. If it were eliminated I would, in seconds, flee to Verizon. Their service is rated much better and functions in my work and play areas. it is disgusting that AT&T have been ripping off me other millions of other customers for years. I have never received notice of using too much data on my unlimited data plan. Because I am also on a family plan, my son is on limited data. It is there where notice is received. I hope a class action suit follows and I can look forward to a check in the mail. Even more hopefully my service will be better and I can actually use the net when I am on the Promenade in Santa Monica on the weekends. It always operates at it's slowest there. In one of my work settings (Malibu), there is zero service.
15
Imagine that. Even after all these years, AT&T is still good ol' Ma Bell. Old habits like contempt for the customer, sneering and the lying die hard at that place.
37
Attention AT&T customers: Your rate increase will soon arrive. Someone has pay this $100M fine, and it ain't gonna be AT&T shareholders.
Fines don't work on corporations. Arrest someone.
Fines don't work on corporations. Arrest someone.
140
For what exactly? You can only arrest people for criminal code violations.
I got a notice that the due for my bill is now earlier.
Theft? Deceptive advertising?
5
Makes you wonder why monopolies are promoted as a sound economic ideal to be pursuit only to regress into feudal restriction of goods once it is attained by a private entity.
12
Meanwhile, any traveler to South Korea or various other places will tell you how slow our service is in the US at even the highest advertised speeds; like the cobbler whose children went barefoot, our US Internet offerings are slow and expensive. Just like what we have to pay for drugs, the Obama Administration continues to sell out the customers to these service providers (and Big Pharma).
35
Obama was threatened by the pharma and insurance industries that if he were to propose a decent medicare PDP they'd unleash another ad propaganda war against ANY kind of plan, so blame them instead of Obama.
1
The deal with Big Pharma was made by Bush. You like Bush?
You know that if AT&T got caught doing this, then the actual abuse to the customers was MUCH, MUCH more than has been reported. Large corporations and government agencies prepare in advance before doing illegal things to make sure they have a fall-back plan in case they are caught. Thank God at least some parts of our judiciary are still functioning. AT&T deserves to suffer for their dishonesty.
On the subject of dishonesty in large, trusted social institutions, I just watched a very informative video available on YouTube: "9/11 - The Anatomy of a Great Deception (Full Documentary)". This video was put together by an average U.S. citizen that was troubled by the inconsistencies in the official 9/11 story and his conscience wouldn't let him put it out of his mind. Bottom line: Not all Americans have decided they are willing "forget about" what happened on the day of the worst terrorist attack in world history, and want justice to be served! Maybe if the millions of Americans on Facebook post this video to each other, we can begin a national discussion on the unanswered questions of 9/11 despite the resistance of the the corporate media (90% of the U.S. media is owned by 6 corporations. This fact can be googled).
On the subject of dishonesty in large, trusted social institutions, I just watched a very informative video available on YouTube: "9/11 - The Anatomy of a Great Deception (Full Documentary)". This video was put together by an average U.S. citizen that was troubled by the inconsistencies in the official 9/11 story and his conscience wouldn't let him put it out of his mind. Bottom line: Not all Americans have decided they are willing "forget about" what happened on the day of the worst terrorist attack in world history, and want justice to be served! Maybe if the millions of Americans on Facebook post this video to each other, we can begin a national discussion on the unanswered questions of 9/11 despite the resistance of the the corporate media (90% of the U.S. media is owned by 6 corporations. This fact can be googled).
2
Unlimited Data does not mean unlimited data at full LTE speeds. I am not sure that AT&T offered unlimited LTE speed data download.
Consumers must make sure that they read the fine print, which usually says that unlimited data is guaranteed at 3G speeds but could include LTE speeds.
But if ATT promised unlimited LTE data service (which no service provider can guarantee), then they were deceptive but I doubt that they did.
If you got unlimited data at at least 3G speeds, you got unlimited data plan.
FCC cannot act like mafia and extort money from companies on flimsy grounds.
Consumers must make sure that they read the fine print, which usually says that unlimited data is guaranteed at 3G speeds but could include LTE speeds.
But if ATT promised unlimited LTE data service (which no service provider can guarantee), then they were deceptive but I doubt that they did.
If you got unlimited data at at least 3G speeds, you got unlimited data plan.
FCC cannot act like mafia and extort money from companies on flimsy grounds.
2
Throttling speeds were punitive once a user reached the arbitrary 5 gb limit that AT&T arbitrarily set AFTER its customers agreed to the contracts. Those punitive speeds were not anywhere near LTE or 3G. They were less than 5% of 3G speed. No one who got throttled got 3G speed, so your argument is irrelevant.
On top of that, the FCC is now the SOLE remedy for AT&T's breach of these contracts since AT&T has fine print taking away its customers' right to sue as a class action. FCC is far from a mafia, they took 8 years to respond to these actions, and even then only hit AT&T with a slap on the wrist. AT&T made way more than this by forcing its customers off those unlimited plans through illegal throttling. Even if you want take the libertarian side in this argument, freedom to enter into contracts requires both sides to abide by those contracts.
On top of that, the FCC is now the SOLE remedy for AT&T's breach of these contracts since AT&T has fine print taking away its customers' right to sue as a class action. FCC is far from a mafia, they took 8 years to respond to these actions, and even then only hit AT&T with a slap on the wrist. AT&T made way more than this by forcing its customers off those unlimited plans through illegal throttling. Even if you want take the libertarian side in this argument, freedom to enter into contracts requires both sides to abide by those contracts.
15
The only mafia, it is apparent, resides in AT&T.
6
My husband doesn't get unlimited at even 3G. Where do you even get your information?
4
What would be reasonable to me is to have that $100 million fine distributed equitably to AT&T customers who were affected by the reduced data speed.
44
You're right Reverend. That would be fair, and that's why we have class action lawsuits for this exact type of corporate greed. Except AT&T takes away its customers' class action rights in the fine print of their contracts, and SCOTUS approved. So much for fairness.
14
Nothing should prevent AT&T customers impacted by the throttling from filing a class-action lawsuit to recover damages. I suspect we may here news of this soon.
I'd like someone to go after the fact that wireless companies set up preferential plans with various phone vendors, like the iPhone and give their calls and data priority treatment. They aren't paying more than I am so why should my Android shuffle down the queue for service because it isn't an Apple device?
Too bad the gov doesn't regulate this. Just imagine if these people had been given free rein on the internet.
Too bad the gov doesn't regulate this. Just imagine if these people had been given free rein on the internet.
2
Finally. Maybe we have a chance to become the great nation we once were, yet again. A nation where corporate profits were made scrupulously, not by stepping on the customer's neck.
For years, I've been describing the corporatocracy using the wireless phone companies as an example. Goes like this :
"How many millions of customers do they have ... hundreds of millions. Find one customer, just one, who says he or she always has a rapid and positive experience when calling customer service, always gets a phone that is not refurbished but new, as the insurance he or she pays for should cover, and never has a problem with a dropped signal or an undecipherable bill. Just one. "
AT&T is only one example, of what it is exactly that's "trickling down".
A victory for the people !
For years, I've been describing the corporatocracy using the wireless phone companies as an example. Goes like this :
"How many millions of customers do they have ... hundreds of millions. Find one customer, just one, who says he or she always has a rapid and positive experience when calling customer service, always gets a phone that is not refurbished but new, as the insurance he or she pays for should cover, and never has a problem with a dropped signal or an undecipherable bill. Just one. "
AT&T is only one example, of what it is exactly that's "trickling down".
A victory for the people !
16
The defining image for "trickle down" is using someone as a urinal. The terrible irony is that the Republican Party, over a century ago in the vanguard of antitrust legislation thanks to Theodore Roosevelt, now seems to have become its evil twin, or, more precisely, what we fought against in World War II.
1
I wonder if those affected will ever see a dime of this fine?
9
I have had a grandfathered AT&T unlimited plan since the first iPhone. The solution to the problem for AT&T would seem to be to eliminate such plans entirely.
12
Offering one service/plan and charging for it, but then consciously delivering less is THEFT. If corporations are "people," who'll be too-well connected this time to avoid jail?
73
The solution is to hold AT&T's feet to the fire. AT&T will gouge and fleece the consumer every chance it gets. Good for Tom Wheeler doing just that. I worked with AT&T, Verizon, and T-Mobile putting in 1000 Blackberries back in the day for a Fortune 500 company. AT&T was the most obstinate and difficult carrier to work with. As a result of their evil ways, VZW and T-Mobile were our predominant carriers. We did not put up with their shenanigans for a Bronx New York minute.
30
Don't try to upgrade your phone. You will need to choose an existing plan. This action will cause Verizon and T-Mobile to open their wallets also.