T-Mobile to Pay for Misleading Customers

Published On October 21, 2016 | By Tom Huskerson | News and Analysis

t-mobile-logoThe FCC has dropped the hammer on cell provider T-Mobile. T-Mobile USA Inc. agreed to cough up at least $48 million for making customers believe it offered a truly unlimited data plan. It was never true.

An FCC investigation that began last year  looked into whether the company properly disclosed that it was slowing down data speeds for heavy users. In the cell phone industry this is a common practice known as throttling.

As part of the agreement T-Mobile will pay a $7.5 million fine and offer $35.5 million in customer benefits that includes data upgrades and discounts on accessories. The giant cell provider will also spend another $5 million to improve mobile high-speed Internet access for as many as 80,000 low-income public school students.

Travis LeBlanc, head of the FCC Enforcement Bureau said, “Consumers should not have to guess whether so-called unlimited data plans contain key restrictions, like speed constraints, data caps and other material limitations.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.”

The FCC enforced settlement applies to T-Mobile’s unlimited data plans but not its Binge On service.

According to the FCC it began investigating in March 2015 after T-Mobile and pre-paid service provider MetroPCS customers complained. T-mobile customers complained about being mislead by the so-called unlimited data plan. According to the FCC the plan throttled customer data speeds after a certain data threshold is used each month.

T-Mobile “de-prioritized” heavy users data speeds during times of network congestion. Unlimited plan subscribers who consumed more than 17 gigabytes of data in a given month, typically about  3% of its users, were subject to slower speeds than advertised.

The FCC found that T-Mobile failed to properly notify its customers of the restriction from August 2014 to June 12, 2015.  T-mobile has agreed to better inform its customers of the restrictions and notify customers when their data usage approaches the monthly limit at which it could be slowed.

For T-Mobile  customers they could get 20% off the regular price for any accessories up to $20 and an automatic upgrade of 4 gigabytes of data for one month, valued at $15 that can be used over the course of a year under its “data stash” program. MetroPCS customers automatically get the 4GB of data to use over two months. The company must also notify eligible customers of the benefits by Dec. 15.

In an effort to help bridge the digital divide T-Mobile has also agreed to spend an additional $5 million providing free tablets and other mobile devices to low-income public school districts. Beginning in October 2017 eligible schools will receive reduced-cost mobile broadband services for the devices. Students and their families will get the service at no cost. The program will enroll 20,000 students annually over four years.

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About The Author

Tom Huskerson Bio Born in Richmond Virginia Tom Huskerson is a military veteran who settled in California after his discharge. He attended Santa Barbara City College where he began his writing career as a campus reporter. He worked as an intern news reporter for the Santa Barbara News-Press writing feature stories before moving on to San Francisco. At San Francisco State University Tom studied broadcast communications and began to focus on the Internet. He completed his graduate thesis on Internet advertising. Tom was the first student to ever focus on the Internet as a graduate student at San Francisco State University. After graduation he went to work for Zona Research in California’s Silicone Valley. As a research associate Tom supported senior analyst writing on the latest developments in the Internet industry. During the dot com boom Tom worked for several web businesses as a market researcher and analyst. As a writer and researcher Tom has authored various technical works including a training program for Charles Schwab security. Other projects included professional presentations on workplace violence and hiring security contractors. Tom has returned to focus on writing both fiction and non-fiction works and blogging for a travel website. He has published two books of short stories and completed two novels. Tom is the owner of Scribe of Life Literature and EbonyCandle. Most recently Tom has launched the blog African American Cyber Report. The blog is the result of his desire to inform the African American community of the dangers and benefits of the cyber age. In his blog Tom reports on information security, new and analysis, scams and hoaxes, legal happenings and various topics that arise from the age of information. Tom believes that technology is a necessary tool for black people and they should know what is happening. Tom writes believing that techno speak is for the professional and that valuable information can be communicated using plain language. As a result he has embraced the motto, Less Tech, More Knowledge.

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