AT&T Loses Throttling Case, Pays $935 to Customer

ATT decided to pay up after a California small claims court judge ruled it was unfair to throttle a cellphone data plan advertised as unlimited.

[More from Mashable: Why the iPad Can’t Use FaceTime Over LTE: It’s Apple’s Call]

Matt Spaccarelli, 39, challenged ATT in February after he noticed his 4G network wasn’t operating as fast as it should. Spaccarelli is among the 5% of ATT customers who use the most data. He told the court speeds slowed once he used 1.5GB to 2GB of data after the billing cycle began.

The judge said slowing down data violated ATT’s unlimited data plan terms and ordered ATT pay $850 plus $85 for court costs.

[More from Mashable: Why Sprint Got Shut Out of Apple’s iPad Party]

The cellphone provider initially said it planned to appeal the ruling, but decided to pay Spaccarelli late Friday afternoon. He tweeted a picture of his check for $935:

In an email, ATT spokesman Mark Siegel confirmed ATT wrote a check to Spaccarelli, but would not comment further.

ATT is still throttling Spaccarelli’s phone — he had a .31 Mbps download speed on Saturday — but he considers the court ruling a win. He said he plans to use the money to shut off his cellphone service before his contract is up and to go to the ATT stockholders meeting in April in Salt Lake City, Utah.

“To me the check means ATT didn’t stand a chance in the appeal,” Spaccarelli said. “If they did, they wouldn’t have paid me.”

ATT’s pay-up decision comes after the company offered to settle the case. ATT asked Spaccarelli to sign a non-disclosure agreement [PDF] that threatened to shut off his phone service for tethering. Spaccarelli refused to sign the agreement.

“It isn’t about the money,” Spaccarelli said. “It’s about getting the service I’m paying for. I pay $130 per month and with that I expect a little bit of reasonableness. “

SEE ALSO: Your Bandwidth Will Be Throttled. Here’s Why.

Both ATT and Verizon throttle users who gobble up the most data. About 17 million ATT customers have unlimited data plans, according to the Associated Press. Small claims court is the only legal route that has been successful for challenging ATT’s throttling policies. A Supreme Court case last year ruled ATT does not have to allow class action lawsuits, so customers can’t rally in court for a policy change on throttling.

ATT put limits on its “unlimited” data plans earlier this month. The company said 3G and 4G customers who use more than 3GB during a billing cycle will experience slowing speeds and 4G LTE customers won’t be allowed more than 5GB. Even with the change, ATT says 95% of its smartphone customers won’t be throttled.

Spaccarelli said he has found a way to avoid slow speeds. He bought a second iPhone and plugged in a SIM card from Straight Talk, a reseller. He said the download speed is 3.83 Mbps on a ATT 3G network. “Not bad for paying $45 per month for unlimited talking, texting, data and no contract,” Spaccarelli said.

This story originally published on Mashable here.

Views: 0

You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes