After FTC, FCC Pressure, AT&T Backs Off Arbitrary Throttling Of ‘Unlimited’ LTE Users

Back when AT&T stopped offering unlimited wireless data, it grandfathered many of the unlimited users it had at the time. Unfortunately for those users, AT&T immediately started waging a quiet war on these customers as part of a concerted effort to drive them like cattle to more expensive plans. That included at one point blocking Facetime from working at all unless users switched to metered plans (but net neutrality is a “solution in search of a problem,” am I right?) and throttling these “unlimited” LTE users after they’d consumed as little as three gigabytes of data.

Then, just about a year ago, the FCC (like it has on a number of consumer telecom issues like telco accounting fraud or municipal broadband) miraculously awoke from a deep, fifteen-year slumber and decided to do something about this kind of behavior. FCC boss Tom Wheeler started warning telcos that they can’t use congestion as a bogeyman to justify cash grabs, and that network management should be used to actually manage network congestion — not as a weapon to herd users to more expensive options. The FTC also filed suit against AT&T for false advertising over its “unlimited” claims.

While AT&T tried to unsuccessfully tap dance around the lawsuit (ironically claiming it was protected by Title II classification), this regulatory pressure appears to have worked. AT&T this week updated the company’s policy for grandfathered unlimited data customers suggesting the company has modified its network management practices. Back in March, the company’s policy looked like this:

“As a result of the AT&T network management process, customers on a 3G or 4G smartphone with an unlimited data plan who have exceeded 3 gigabytes of data in a billing period may experience reduced speeds when using data services at times and in areas that are experiencing network congestion. Customers on a 4G LTE smartphone will experience reduced speeds once their usage in a billing cycle exceeds 5 gigabytes of data. All such customers can still use unlimited data without incurring overage charges, and their speeds will be restored with the start of the next billing cycle.”

As of this week, the policy now looks like this:

“As a result of AT&T’s network management process, customers on a 3G or 4G smartphone or on a 4G LTE smartphone with an unlimited data plan who have exceeded 3 gigabytes (3G/4G) or 5 gigabytes (4G LTE) of data in a billing period may experience reduced speeds when using data services at times and in areas that are experiencing network congestion. All such customers can still use unlimited data without incurring overage charges, and their speeds will be restored with the start of the next billing cycle.”

In other words, gone are the references to throttling unlimited LTE users just because they hit a totally arbitrary threshold, and the company is now using network management to manage the damn network, not to make an extra buck. AT&T will of course find other, clever ways to annoy these users until they switch to more expensive plans, but it’s at least good to see that the network congestion bogeyman (fear the exaflood!) isn’t quite as effective as it used to be when it comes to justifying high rates, misleading consumers or conning regulators.

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