UPDATED 08:39 EDT / FEBRUARY 26 2015

The data throttling debacle: Deceptive “unlimited” data practices

The Federal Trade Commission (FTC) is going after AT&T Corp. — and other carriers — in an effort to impose fines for data throttling practices. In response, AT&T stated that the FTC had no jurisdiction over these practices.

If you aren’t aware, AT&T offers “unlimited” data plans to consumers, but the term unlimited could be called into question because when a user reaches a certain amount of consumed data, 5GB, their speed gets throttled or slowed. This has resulted in irked customers who demand to have the unlimited data they were promised.

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If you think about it, AT&T does have a point; they do not cut off data usage once a certain data usage is reached. They just slow things down. But that doesn’t make it any less confusing or frustrating for consumers.

The Federal Communications Commission is also breathing down ISPs’ necks as later this week, the FCC is scheduled to vote on Internet regulations which will include setting new standards for speed and pricing for Internet service providers. Two commissioners are proposing that FCC Chairman Tom Wheeler delay the vote and release the proposed Internet regulations to the public and that the people be given not less than 30 days to carefully study the proposed regulation. The FCC will also be open to proposals sent by the people and carefully review them to be able to make specific modifications to make the proposed regulations better.

The FTC seems serious in its quests to give consumers what they want and deserve. The Commission recently reached a settlement with TracFone, operator of Straight Talk, Net10, Simple Mobile and Telcel America services, for its not-so-unlimited practices. TracFone has agreed to pay back $40 million to its customers who subscribed to its prepaid unlimited data plan only to be throttled.

Aside from AT&T, will other network carriers receive the wrath of the FTC and FCC, or have they implemented steps to appease the powers that be?

T-Mobile

 

T-Mobile US, Inc. previously only allowed its customers to access speed-test applications that showed the network’s full network speed, causing confusion for its customers and raising the ire of the Federal Communications Commission (FCC).

The FCC has pressured T-Mobile to become more transparent with its data capping, and the network has agreed. T-Mobile will send text messages to its subscribers that will give them more accurate speed information, place direct links to accurate speed tests on consumers’ handsets and revamp its disclosure documentation regarding data throttling.

Verizon

 

In October 2014, Verizon Communications Inc. implemented data throttling practices. Prior, the network convinced some of its subscribers with grandfathered unlimited plans to upgrade to newer data plans. Those who didn’t upgrade were presented with data throttling as part of its Network Optimization policy.

Those on 3G and 4G unlimited plans will get throttled if they belong to the top five percent of data users who consume 4.7GB or more of data, have fulfilled their minimum contract term or are attempting to use data on a cell site that is experiencing a high demand of data traffic.

Sprint

 

Sprint Corp.’s data throttling came months earlier than Verizon’s did. The company announced that it would implement data throttling practices as of June 1, 2014. Not surprising of a corporation, Sprint’s data throttling came with a very innocent-sounding name: “Network Management.”

Just like the other networks, Sprint stated that five percent of its subscribers on unlimited high-speed plans in congested areas — as well as prepaid subscribers on Virgin Mobile or Boost Mobile — would be affected by the network management. Sprint even offered a “cut your bill in half” plan directed at AT&T and Verizon subscribers who wanted lower monthly bills. But if you scrutinize the offer, you’d find out that it just gives the network more teeth to throttle your data.

Who will be next?

 

So who will the FTC and FCC go after next for misleading “unlimited” offerings? If you ask consumers, they would possibly answer that all of these networks should be held accountable for deceptive practices.

photo credit: Trading acorns via photopin (license)


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