AT&T fined $100 million by FCC over data throttling of consumers
This has been an old tactic of telecom operators of fooling the consumers. Hopefully after the latest FCC action, things will be different in the coming days.
The US Federal Communications Commission (FCC) has imposed $100 million fine on leading US telecom operator AT&T Mobility LLC for slowing down consumersâ€™ internet speed notwithstanding the fact that they were being offered “unlimited”.
Many companies have been accused of offering unlimited data to consumers, but when they reach a certain limit, they slowdown their internet speed, making it very hard and sometimes impossible to browse internet and watch videos.
Meanwhile the telecom operator has said that it will contest the fine. According to the FCC, the consumers were misled by the company into buying plans they believed would give them unlimited ability to send and receive data, including Web browsing, GPS navigation and streaming videos.
Nonetheless many consumers claimed that once they reached a certain level of the internet use, the data on unlimited plans would be slowed down significantly, at speeds far lower than advertised, the FCC said. AT&T responded saying that it would “vigorously dispute” the fine – the largest proposed by the FCC so far in its history.
The FCC has said that it may cut the amount of fine it has imposed on AT&T if it succeds in providing evidence that the allegations leveled by the federal regulatory body are wrong. On the other hand, if AT&T refuses to pay, then the FCC will take the matter to court. “The FCC 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 itâ€¦We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC’s disclosure requirement” the company said in a statement.