AT&T to Soon Throttle Unlimited Data Plan Speeds
Heavy data users will be held back.
Unlimited mobile data plans are going the way of the Dodo bird, as AT&T announced over the weekend that it will soon begin to throttle the throughput for heavy users on its grandfathered unlimited data plans.
AT&T pointed its finger at those who are in the top 5 percent of the heaviest data users, whom are to be throttled until the next billing cycle. AT&T did not give a hard number on what the data cap would be, but instead referred back to the "top 5 percent" benchmark. That means that the threshold to make the top 5 percent in data use will vary from month to month.
AT&T's throttling threat could encourage those in the top 5 percent already to cut down on their usage, which would lower the ceiling. Of course, if the top 5 percent could band together to all increase their usage, then that would theoretically raise the cutoff point.
The nation's largest wireless company also took this opportunity as justification as to why it should be allowed to acquire T-Mobile, saying that it is network constraints that are forcing its hand to throttle data. Cynics, on the other hand, would expect unlimited data plans to stay extinct, even if the T-Mobile merger goes through.
See the full AT&T letter to its customers below:
An Update for Our Smartphone Customers With Unlimited Data Plans
Dallas, Texas, July 29, 2011
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.
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glad i live in the uk
It's "Network Constraints" = them not investing in their own infrastructure. Maybe instead of just doing routine maintenance, you and ever other company should be upgrading your networks to contain more fiber.
kamak, bt are laying fibre then only giving us 50mb speeds so they can get way more bandwith
its not a bad idea to be fair
These companies really need to invest some of their record profits back into their infrastructure.
By their own logic, they should credit back users who don't utilize their full plan.
nah, that would mean less profit in there pockets
Strange that there is so little competition in the chip market, yet there seems to be an understanding that unless you push forward with better processors, you will eventually get left behind... Yet with the phone industry, there is the understanding that if you don't invest in your own products, it isn't a problem until someone else threatens to take away your market share...
You know whose fault this is: Customers... Customers who agree to greedy 2 year contracts... Customers need to learn how to say no to contracts, so that these companies have incentive to keep upgrading their products, less market forces take their business away...
Actually I am agreeing with AT&T here... If you have 5% of users using 12x the amount of data than the average of the remaining 95% and congesting their networks (mostly just in the areas of the 5%) then it is time to throttle the 5%. This isn't economics, this is the two kids in class that take up 90% of the teachers time...
jacob, i think its more the fact that the goverment let them do this
glad i live in the uk
For mobile data, sure. What about gas, food and electronic toys? Glad I live in the US. :-)
So they using that excuse for limiting dsl plans as well?
blessed, you are so nieve
most people that have smartphones dont know how to use them,
some people like me watch vids on them that use a lot of data (i know i mainly use it on wifi at home)
i get 300 txts and 500mb as a bonus for topping up 10 pounds so i do fine
petrol isnt that expensive really, dont forget that the tax pays for free health care and others things you americans dont get
They probably have all their attention focused on expanding the network for their U-Verse Internet project. I've seen AT&T out where I live running cable for it and Comcast, (oop, scuse me, Xfinity, lol) has started running commercials that discourage their customers from switching to U-Verse.
well lets make it easy for people to understand
buissness's pay politicians so they can do what they want or in other words they are ALL CORUPT
even winston churchill was corrupt and accepted bribes
I have unlimited and I used nearly 15Gb last month (typical is 5-10). If they throttle my internet I will make every effort I can to use copious amounts of data that exceed my current usage.
What's stupid is that only 5% of user's go over that limit but within 1-3 years most of us will be where they are because of cloud technology, movies and games they use more space etc.
You have to feel for these companies. With the explosion of smart phones, they are having difficulties keeping up. I believe I saw in another one of these articles that data usages has increased by 800% over the last 2-3 years. It's hard to keep up with that kind of increase.
WELCOME TO FABULOUS CAPITALIST AMERICA - LAND WHERE CORPORATIONS ARE FREE, AND POLITICIANS AND THE PEOPLE ARE YOUR SLAVES TO DO THY BIDDING! But seriously, I'm slowing starting to see no difference between Communism and Capitalism. Communism, the Government runs the show. Capitalism the corporations run the show - and also buy out the politicians.
At least corporations have to get you to GIVE them your money. The government just TAKES it.
By this logic, the bottom 5% should be refunded the cost of their data plan. No? Well, if it wasn't already obvious that AT&T doesn't give a crap about their customers, and only wants to milk their wallets dry, it is now.
I wonder what the data threshold really is. 5% is roughly 4.5 mil users (according to released ATT wireless subscriber count) that's a lot of angry customers to create. I do like that last paragraph though. If we you let us buy T-mobile we'll be nicer....for a little while.....
That's stupid ------------------> BYSTANDER, that's like a Millionaire complaining that the oil changes are more expensive on his Lambo.
Ok, I'm lost here. AT&T owns considerably more "spectrum" then they're using....yet, they're experiencing a "spectrum shortage"....
You have to feel for these companies. With the explosion of smart phones, they are having difficulties keeping up. I believe I saw in another one of these articles that data usages has increased by 800% over the last 2-3 years. It's hard to keep up with that kind of increase.
I don't feel sorry for any company that has a long standing track record of monopolization and abuse of market position. Buying T-Mobile won't solve their network problems. Updating and expanding their network will in fact solve their network issues though. It doesn't matter how much "spectrum" they own....if they don't actually use it.
Wish you could edit posts here.....ugh
Current customers should start looking very closely at their contracts. If it's not stated within their contract at the time the service was activated that AT&T may throttle service for heavy usage, AT&T may not legally be able to throttle service for those paying for "Unlimited data".
sy, they will just send them a notice of change of contract that they will add a fair use policy if there isnt allready one there and there fine and its legal
WELCOME TO FABULOUS CAPITALIST AMERICA - LAND WHERE CORPORATIONS ARE FREE, AND POLITICIANS AND THE PEOPLE ARE YOUR SLAVES TO DO THY BIDDING! But seriously, I'm slowing starting to see no difference between Communism and Capitalism. Communism, the Government runs the show. Capitalism the corporations run the show - and also buy out the politicians.
Greed vs. Greed.
When the fear of God is lost, all nations begin to fall.
AT&T is trying to increase our "speculum" capacity.
wtf If you pay for a certain unlimited plan you should be able to use that bandwidth 100% 24/7. Just greedy as hell.
I love it when the marketing ploy term "unlimited" is really NOT unlimited. Plus to say that users could jump from "unlimited" to a tiered pricing scheme for better service just sounds to me like ATT is wanting to drive those customers from "unlimited" to the cap b/c they want to live with the same network infrastructure...longer. Think about this, if there are lets say 10s of millions of users who aren't excessively using the network but the top 5% are...I don't understand how they are such a burden to the network when everyone relatively get the same streamed bandwidth but just accumulated more of it. It is because the network is weak to the demand that is needed. The top 5% is miniscule compared to the other 95%. What will happen is that it will be a continuous "top 5% of heavy data customers"; a never-ending cycle of throttling customers who just happen to make it to the top 5%...they drop off while others take over. So to me, this is just a ploy to save network infrastructure...longer while just taking control of those "unlimited" users because the cycle will be never-ending until everyone is down to tiered pricing form. "Unlimited" brought in customers to the "smartphone" arena...now it is time to tame them...
You either throttle the connection or you limit its speed. You cannot throttle speed. The phrase doesn't make sense. Are you going to limit the speed of the speed?
So...basically...AT&T sucks. End of article.
You have to feel for these companies. With the explosion of smart phones, they are having difficulties keeping up. I believe I saw in another one of these articles that data usages has increased by 800% over the last 2-3 years.
They sell them and are actively trying to sell even more of them. The unlimited plan that I have is $30 per month, that's $720 over the life of my contract. They talk about selling millions of iphones, that's billions of dollars in additional revenue for them. So should they just put it in their pockets and then complain that the customers want to receive something for their money, or should they actually spend part of it to provide some service to their customers?
What they need is a class action lawsuit to teach them what the definition of "unlimited" really is.
I don't think the problem is with 5% of people using more data, the problem is that they want to throttle everybody and this is their justification. In my area the problem is the sheer number of phones in any given cell. I'm next to a major freeway that is constantly congested, and all of those people are on their phones while they are sitting in traffic.