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AT&T to throttle ‘very small minority’ on unlimited data plans starting October 1
Mac Daily News ^ | Friday, July 29, 2011 · 5:25 pm · 25 Comments

Posted on 07/29/2011 6:07:18 PM PDT by Swordmaker

AT&T today released the following statement, verbatim:

An Update for Our Smartphone Customers With Unlimited Data Plans

Like other wireless companies, we’re taking steps to manage exploding demand for mobile data. Many experts agree the country is facing a serious wireless spectrum crunch. We’re responding on many levels, including investing billions in our wireless network this year and working to acquire additional network capacity. We’re also taking additional, more immediate measures to help address network congestion.

One new measure is a step that may reduce the data throughput speed experienced by a very small minority of smartphone customers who are on unlimited plans – those whose extraordinary level of data usage puts them in the top 5 percent of our heaviest data users in a billing period. In fact, these customers on average use 12 times more data than the average of all other smartphone data customers. This step will not apply to our 15 million smartphone customers on a tiered data plan or the vast majority of smartphone customers who still have unlimited data plans.

Starting October 1, smartphone customers with unlimited data plans may experience reduced speeds once their usage in a billing cycle reaches the level that puts them among the top 5 percent of heaviest data users. These customers can still use unlimited data and their speeds will be restored with the start of the next billing cycle. Before you are affected, we will provide multiple notices, including a grace period.

This change will never impact the vast majority of our customers, and is designed to create a better service experience for all.

The amount of data usage of our top 5 percent of heaviest users varies from month to month, based on the usage of others and the ever-increasing demand for mobile broadband services. To rank among the top 5 percent, you have to use an extraordinary amount of data in a single billing period.

There will be no changes for the vast majority of customers. It’s not how much time you spend using your device, it’s what you do with it. You can send or receive thousands of emails, surf thousands of Web pages and watch hours of streaming video every month and not be in the top 5 percent of data users.

Typically what puts someone in the top 5 percent is streaming very large amounts of video and music daily over the wireless network, not Wi-Fi. Streaming video apps, remote web camera apps, sending large data files (like video) and some online gaming are examples of applications that can use data quickly. Using Wi-Fi doesn’t create wireless network congestion or count toward your wireless data usage. AT&T smartphone customers have unlimited access to our entire Wi-Fi network, with more than 26,000 hotspots, at no additional cost. They can also use Wi-Fi at home and in the office.

The bottom line is our customers have options. They can choose to stay on their unlimited plans and use unlimited amounts of data, but may experience reduced speeds at some point if they are an extraordinarily heavy data user. If speed is more important, they may wish to switch to a tiered usage plan, where customers can pay for more data if they need it and will not see reduced speeds.

But even as we pursue this additional measure, it will not solve our spectrum shortage and network capacity issues. Nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near term challenges.

Source: AT&T


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: atandt; att
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To: sten

lol. yeah, that seems about right. they have all rights and we have none. go figure :)


21 posted on 07/29/2011 6:53:50 PM PDT by HeartlandOfAmerica (Geithner: Taxes on 'Small Business' Must Rise So Government Doesn't 'Shrink')
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To: visualops

Ummm. They can have different speeds with those things? Sorry. I’ve never had one. And better yet, they can choose what speeds they can use? amazing


22 posted on 07/29/2011 6:55:37 PM PDT by HeartlandOfAmerica (Geithner: Taxes on 'Small Business' Must Rise So Government Doesn't 'Shrink')
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To: plain talk
Well I have AT&T and I have no complaints. First class stuff. All the carriers will be doing this to survive. First internet and now mobile. Verizon and now AT&T. You have a small percent of bandwidth hogs that drive up the cost for everyone else and should indeed pay more.

I agree, plain talk. I've been with AT&T dating back to Cingular, and I have no complaints. Wide coverage (not just in Metro), reliable service and fair costs. We are heavy voice and fairly heavy bandwidth users with iPhones. Mine gets very heavy business use.

I don't expect AT&T to wipe my nose or give me something for nothing. Any mobile provider that does will soon go out of business -- and its pieces will be bought up by AT&T or Verizon. AT&T is telling its heaviest users that they can lessen their usage with WiFi, so that's fair notice. This measure is the only way to keep prices down (for those 95% of the customers) to a price that will continue to produce a profit.

Every consumer loves a trendsetter who leads the downward race to insolvency, but every consumer hates the trendsetter who begins the upward correction to profitability.

23 posted on 07/29/2011 6:56:11 PM PDT by Always A Marine
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To: CharlesWayneCT

You are right on both counts.


24 posted on 07/29/2011 6:56:24 PM PDT by USFRIENDINVICTORIA
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To: Swordmaker

Ummm... what part of “unlimited” translates to “throttled”? Can someone say “breach of contract”?

I could understand if someone is using their smartphone for more than just data on their smartphone (like using it to tether a computer - which is against the terms of the contract they agreed to when they signed up). But AT&T would have to figure out how to tell the difference between smartphone data use and tethered use (which AT&T doesn’t currently have the capacity to judge).

Then again - is Verizon any better? You still cannot use the internet connection and voice at the same time - so that already limits somewhat.


25 posted on 07/29/2011 6:56:58 PM PDT by TheBattman (They exchanged the truth about God for a lie and worshiped and served the creature...)
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To: Swordmaker

What I find even more interesting - AT&T is getting ready to roll out their own version of 4G service - if current bandwidth usage is causing issues, what happens when 4G goes online? Hmmmm...


26 posted on 07/29/2011 6:57:54 PM PDT by TheBattman (They exchanged the truth about God for a lie and worshiped and served the creature...)
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To: goodwithagun

I have an iPhone with an unlimited data plan thru ATT. I am going to drop it and get a cheap phone. I have an iPad with a data plan and carry it with me everywhere so no longer need the smartphone.


27 posted on 07/29/2011 7:01:54 PM PDT by sheana
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To: HeartlandOfAmerica

They aren’t changing the unlimited part. They are ramping down the bandwidth after a certain point.

It’s still unlimited, at a different speed. If they still want to download data 24/7 they’ll still be able to do that.

There probably is nothing in the contract that says they couldn’t alter the speeds under certain circumstances.


28 posted on 07/29/2011 7:06:56 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Always A Marine

I am thinking of tethering my iPad to my IPhone, however with their $45 plan I never use it all up.


29 posted on 07/29/2011 7:07:17 PM PDT by razorback-bert (Some days it's not worth chewing through the straps.)
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To: sheana
My husband and I each have a laptop. We just don't need a phone with Internet. Our son will soon be three and our daughter is due soon, so we won't be traveling that much the next year or so. If we were big travelers maybe the iPhones would be an asset. However, I just cannot justify a $150/month bill for two people. With Straight Talk we pay $30 each for 30 days of service, including 1000 minutes and 1000 texts. That is all either of us needs. Maybe if the economy gets back on track, but for now I'd like to downsize as much as possible.
30 posted on 07/29/2011 7:07:50 PM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: TheBattman

Is it real 4G specs, or just 4G LTE (lite)?


31 posted on 07/29/2011 7:08:22 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Always A Marine
AT&T is telling its heaviest users that they can lessen their usage with WiFi, so that's fair notice

Yes - people need to be taking advantage of Wi-Fi at home and free access W-Fi hotspots. Wi-Fi hotspots used to charge and have moved to a free access model over the years. Plenty of opportunities for free downlaods. Charging the top 5% of users is not going to have much of an impact on people like us. In spite of everything else going on this is a yawner.

32 posted on 07/29/2011 7:11:46 PM PDT by plain talk
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To: visualops
Here is what galls me.....The companies are advertising all day demonstrating all that can be done on the net if you just upgrade and spend more money. Now you upgrade and spend the money, then the rug is pulled out saying we are all socialists now and everybody gets the same speed.

If you just do a quick inventory, they want you to download movies and games and GPS and play games with your friends and check out Google world and see what every restaurant has on special and upgrade your Facebook and send and receive email, and on and on,but if you do, we will throttle you down and your movie will stop in mid stream. There are many at home getting much of their TV off the net right now. That's the whole Netflix idea. I have Direct TV right now and download much of my TV On Demand from the net. I'm looking at getting a Roku to get Beck in Sept, My wife and daughter just bought the EVO's to get 4g and now they cry that they can't do what they promised? I can remember back in the Clinton days that they got $7 billion to build the optical net, but then the NASDAQ crashed from 5000. Global Crossing went dark and people seem to have forgotten that we put thousands of miles of dark fiber in the ground. All they have to do is light up the cable that's already there, but they don't want to spend the money.

33 posted on 07/29/2011 7:12:39 PM PDT by chuckles
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To: Swordmaker
AT&T is truly the original evil corporation.

I always do everything in my power to get away from AT&T, but because they can't ever successfully compete with anyone, they simply buy the superior competition, and I have to leave them again.

34 posted on 07/29/2011 7:17:51 PM PDT by Navy Patriot (Holy flippin' crap, Sarah rocks the world!)
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To: Swordmaker

I have a very basic Nokia phone. I use no data at all.

Up until about 4 years ago I had top quality service with ATT. Now it is a little above sucky.

ATT way oversold their bandwidth to get the Iphone market and then that degraded the service of everyone who already had ATT. Screw your existing customers to get new ones. Typical idiot corporate reasoning.


35 posted on 07/29/2011 7:36:25 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: Swordmaker
Nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near term challenges.

Why do I have trouble believing that?

36 posted on 07/29/2011 7:38:23 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: Swordmaker

I left the rotten AT&T for T-Monil. PLEASE don’t let AT&T buy them. AT&T one of the worst companies out there as far as value for service provided.


37 posted on 07/29/2011 7:39:46 PM PDT by RIghtwardHo
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To: visualops

the 4g here is spotty at best. Even when it does show service it does not work half the time.

I call monthly and get the 20 dollar EVO tax (we have two EVO’s) credited back.

I have been with sprint with 5 lines for 13 years. When I bark, they actually do hop a little bit so that helps.


38 posted on 07/29/2011 7:49:53 PM PDT by cableguymn
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To: Immerito

If one could find a provider that offered an unlimited plan then one could, but you can’t.

They have all started dropping the unlimited plans, just a fact. The iPhone will eventually be offered on all carriers, or those carriers will fail.


39 posted on 07/29/2011 7:52:51 PM PDT by itsahoot (--I will vote for Sarah Palin, even if I have to write her in. --He that hath an ear, let him hear.)
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To: Swordmaker

Translation: There will now be limits on your “unlimited” plan.


40 posted on 07/29/2011 8:01:28 PM PDT by Redbob (W.W.J.B.D.: "What Would Jack Bauer Do?")
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