T-Mobile to pay $48 million in settlement over throttling customers with heavy data usage

T-Mobile to pay $48 million in settlement over throttling customers with heavy data usage

Call it the “Un-fine.” 

Perhaps that’s how T-Mobile, the self-described uncarrier, will spin Wednesday’s settlement with the FCC. The nation’s third-largest wireless network will pay $48 million total including customer benefits, education donations, and a fine as part of an agreement reached with the FCC.

At issue was how T-Mobile throttled the connection for customers who were in the top three percent of data usage. Customers were unaware in advance that they were having their connections intentionally slowed down.

That’s a big no no, as the FCC requires full disclosure and notification for a carrier to take this kind of action. To make amends, T-Mobile has also agreed to give 20 percent off accessories to customers of both T-Mobile and MetroPCS who were impacted by the policy. 

Additionally, affected customers will be eligible for 4GB of additional data under the “Simple Choice MINT” plan. The customer benefit program is to cost the carrier $35.5 million. A $7.5 million fine is  to be paid directly to the U.S. Treasury and $5 million will be donated for school services and equipment. 

The impact on you: If you’re a T-Mobile or MetroPCS subscriber who is impacted by the settlement, you should receive a notification from your carrier. This isn’t the first time T-Mobile has run into throttling issues, as many raised concerns about how data was throttled through Binge On.

IDG Insider

PREVIOUS ARTICLE

«Meet Moov HR, the ultra-cheap heart-rate sensor you wear on your head

NEXT ARTICLE

Facebook wants to replace Yelp with your friends' recommendations»
author_image
IDG Connect

IDG Connect tackles the tech stories that matter to you

Add Your Comment

Most Recent Comments

Our Case Studies

IDG Connect delivers full creative solutions to meet all your demand generatlon needs. These cover the full scope of options, from customized content and lead delivery through to fully integrated campaigns.

images

Our Marketing Research

Our in-house analyst and editorial team create a range of insights for the global marketing community. These look at IT buying preferences, the latest soclal media trends and other zeitgeist topics.

images

Poll

Should companies have Bitcoins on hand in preparation for a Ransomware attack?