American wireless carrier AT&T Inc on Tuesday entered into a legal trouble as the government has filed a lawsuit, alleging it of selling unlimited data plans to its consumers but at reduced Internet speeds once a certain amount of data is exhausted.
The Federal Trade Commission (FCC) filed a legal case against the country’s No. two wireless carrier as the federal body found the “throttling” of Internet feeds as misleading. The FCC said that it found slowing of data speeds in some cases by nearly 90 percent.
Meanwhile, AT&T turned down all the allegations levied on it, terming them as ‘baseless’.
“We have been completely transparent with customers since the very beginning. This program has affected only about three percent of our customers, and before any customer is affected, they are also notified by text message,” said AT&T’s general counsel Wayne Watts.
Over 3.5 million customers having legacy unlimited data plans had witnessed a slowdown in their Internet speeds by over 25 million times.
On its support website, AT$T said that its users who have certain plans can witness data slowdowns once they reach certain limits. The 3G smartphone holders will see slowdowns after they exhaust three gigabytes of data per month and those having 4G LTE smartphones can use five gigabytes before slipping into potential slowdowns.
AT&T, on its official website, has offered its users, who simply dislike slower internet connection, with another set of plan. They can use Wi-Fi or they can also avail the different plans of AT&T.
Meanwhile the shares of AT&T dipped briefly as the news hit headlines but recovered to be up about 0.2 percent during afternoon trading at the New York Stock Exchange (NYSE).
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