T-Mobile to Pay $48 Million For Lack of Transparency About Throttling Data-Heavy Users on Unlimited Plans

[MacRumors]

The FCC today announced it has reached a $48 million settlement with T-Mobile, including a $7.5 million fine and $35.5 million in consumer benefits, following an investigation into whether the carrier adequately disclosed speed and data restrictions for its so-called "unlimited" data plan subscribers.

FCC investigators determined that ads and other disclosures from T-Mobile, and its prepaid brand MetroPCS, failed to adequately inform customers about its policy that de-prioritizes the top 3% of its heaviest data users during times of network contention or congestion, resulting in slower network speeds.

"Consumers should not have to guess whether so-called 'unlimited' data plans contain key restrictions, like speed constraints, data caps, and other material limitations," said FCC Enforcement Bureau Chief Travis LeBlanc. "When broadband providers are accurate, honest and upfront in their ads and disclosures, consumers aren't surprised and they get what they've paid for. With today's settlement, T-Mobile has stepped up to the plate to ensure that its customers have the full information they need to decide whether 'unlimited' data plans are right for them."

As part of the settlement, eligible T-Mobile and MetroPCS subscribers will automatically receive an additional 4GB of 4G LTE data for one month in December and be offered 20% off any single accessory at participating T-Mobile stores with a promo code to be sent via text message in December.

Good settlement with FCC today. @TMobile believes more info is best for customers. #themoreyouknow https://t.co/XFY6dHPfN6 - John Legere (@JohnLegere) October 19, 2016

T-Mobile has agreed to update its fine print disclosures to clearly explain its "Top 3 Percent Policy," what triggers it, who may be affected by it, and its impacts on data speeds. T-Mobile will also be required to notify individual customers when their data usage approaches the threshold for de-prioritization.

Article Link: T-Mobile to Pay $48 Million For Lack of Transparency About Throttling Data-Heavy Users on Unlimited Plans

 

[vertsix]

It's bad, yes. Transparency is always necessary.

But not as bad as Verizon or AT&T.

 

[keysofanxiety]

Credit to John Legere for taking it on the chin. He's a fab CEO.

 

[coolbreeze]

"More info is best for customers" = ****, we got caught. Spin time.

 

[jav6454]

Please swing this mallet at Verizon! Greedy bastards...

 

[Plutonius]

The FCC should instead have T-Mobile build more towers with the money. For one of the top four, they still have sub par coverage .

 

[BornAgainMac]

In the end, the it sounds like the profits were much more than the fines.

 

[machpost]

You can bet that John Legere was at some point, jumping up and down, throwing a fit in his underground lair like a two year old over this.

 

[freepomme]

They really shouldn't have to pay this. They are transparent. But hey, we get free stuff out of it so that just makes me like T-Mobile even more!!!

—T-Mobile. America's Best Carrier.

 

[Mascots]

Credit to John Legere for taking it on the chin. He's a fab CEO.

He seems like someone who truly cares about his company, admitting fault in this world comes so rare. To admit fault and be excited to come to successful terms, as CEO of a telecommunications firm, is even more unique.

I'm sure he wasn't too thrilled in the beginning, but to respond in the end like this is super cool

 

[Derekuda]

Now please go after Verizon! The most crooked wireless carrier in the industry. Their CEO has said "Nobody needs unlimited data" as if he was god of the wireless industry. What a tool!!!

 

[Ken Linger]

I just love how class action suits are "to protect the consumer." I'm pretty sure the lawyers didn't get paid in coupons and "free" data increases for one month!

 

[RiddlaBronc]

Now please go after Verizon! The most crooked wireless carrier in the industry. Their CEO has said "Nobody needs unlimited data" as if he was god of the wireless industry. What a tool!!!

And I bet he has an unlimited plan

 

[kmichalec]

Wow. 4GB extra over my normal cap of data, which I'll never use, and 20% off an accessory I would never buy (since their accessories are priced at 2-3x what they can be bought for online).

Way to go to bat for us FCC...

 

[Juicy Box]

$35.5 million in consumer benefits

What does this mean?

As part of the settlement, eligible T-Mobile and MetroPCS subscribers will automatically receive an additional 4GB of 4G LTE data for one month in December and be offered 20% off any single accessory at participating T-Mobile stores with a promo code to be sent via text message in December.

Is it this the $35.5 mil in consumer benefits?
One month of extra data doesn't seem like much of anything, especially if they already have unlimited. An extra 4GB of data to someone that is suppose to have unlimited data? I guess if they no longer have an unlimited plan, then it would work. But, 4GB for one month doesn't sound like much of a penalty.

Maybe I am just not understanding the article.

 

[kmichalec]

I just love how class action suits are "to protect the consumer." I'm pretty sure the lawyers didn't get paid in coupons and "free" data increases for one month!

Well said!

 

[keysofanxiety]

He seems like someone who truly cares about his company, admitting fault in this world comes so rare. To admit fault and be excited to come to successful terms, as CEO of a telecommunications firm, is even more unique.

I'm sure he wasn't too thrilled in the beginning, but to respond in the end like this is super cool

Couldn't agree more. He is the T-Mob brand. He wears it, talks it, tweets it, and lives it.

I never thought I'd see the day when a mobile carrier would inspire the sort of fervour and cool factor that T-Mob currently are. It's stunningly impressive what he's achieved.

 

[rjohnstone]

The FCC should instead have T-Mobile build more towers with the money. For one of the top four, they still have sub par coverage .

T-Mobile sold almost all of their towers years ago. They stopped building towers and simply lease space on existing towers.
They actually only own less than 2,000 of them now.

They sold 600 of their towers to PTI a few years ago.

AT&T and Verizon have done the same thing.
AT&T leased 9,000 of its towers to Crown Castle and sold several hundred of them outright to Crown Castle to build capitol for the AWS-3 auction.

 

[Slix]

This is kinda dumb. It's like suing the highways for rush hour traffic being slow during times of congestion.

 

[Bryan Bowler]

I just wish T-Mobile would deliver the iPhone that I ordered from them over 5 weeks ago!

 

[Good User Name]

I'm surprised he didn't take the opportunity to tweet "more data is best for our customers".

 

[Ken Linger]

The English language (at least in the United States) is riddled with words that have one meaning legally and another in the dictionary.

Organic (is non-organic food really inorganic?); Shake (a shake from a fast food joint is NOT the same as a milk shake); Native (I'm born here in America but can't say I'm a Native American).

Now "unlimited" has joined the list in the last 10 years. I don't know anyone who actually thinks "unlimited" truly means unlimited, especially when applied to mobile and cable providers. The real problem is that it doesn't actually have a legal definition at all (the cap is going to vary by provider as will their method of determining the cap).

 

[nutmac]

Credit to John Legere for taking it on the chin. He's a fab CEO.

And for negotiating a settlement that doesn't hurt their bottom line at all. I doubt most eligible consumers will bother to take advantage of "20% of any single accessory" (most are already overpriced to begin with). Extra 4GB of prioritized data for one month won't cost T-Mobile much, if at all.

 

[JohnStrass]

Credit to John Legere for taking it on the chin. He's a fab CEO.

Are you paid to post or just a kiss - A$$ ??


Under the CEO's watch he ****ed consumers (like me) who switched hoping for "unlimited" data. I think he needs to "take it" somewhere else.

 

[mi7chy]

Please swing this mallet at Verizon! Greedy bastards...

Verizon might be greedy but at least my grandfathered unlimited data is still truly unlmited and bill is still $61 a month.