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Simi Valley, CA iPhone user awarded $850 in AT&T throttling case

When AT&T started to slow down the data speed for his iPhone service, Matt Spaccarelli, 39,  took the telecommunications giant to small claims court and won an $850 award! Spaccarelli is an unemployed truck driver and a student. The decision occurred in Ventura Superior Court in Simi Valley today.

“Late last year, AT&T started slowing down data service for the top 5 percent of its smartphone subscribers with “unlimited” plans. It had warned that it would start doing so, but many subscribers have been surprised by how little data use it takes for throttling to kick in – often less than AT&T provides to those on limited or “tiered” plans.”

Beware the copycat! :-)

AT&T has around 17 million customers with “unlimited data” plans who be subject to throttling – almost HALF of its smartphone users! Although AT&T forbids these users from consolidating their claims into a class-action suit or taking AT&T to a jury trial, small claims and arbitration remain as possibilities.

When the data flow is throttled, or slowed down, the phone can be used for calls or text messaging, but Web browsing becomes painfully slow and video streaming does not work at all!

Marty Richter, an AT&T spokesperson, said that the company is deciding whether to appeal.

I’ll bet! :-)

Marty Richter said that ultimately, their contract governs the relationship with their customers!

Maybe something “SMARTER,” like a policy of great customer service, should govern AT&T’s relationship with its customers! Just a thought…. :-)

Thousands or possibly hundreds of thousands of AT&T customers could challenge AT&T’s policy in arbitration or small-claims courts.

Back in June of 2011, AT&T Mobility CEO, Ralph de la Vega said that AT&T’s data network will not be on a par with that of Verizon Wireless until 2013 or 2014. At that time, AT&T had not begun to roll out its “4G” network. AT&T, as well as Verizon and T-Mobile, implemented “throttling” of data as increasing amounts of data sent and received by smartphone users “ate into” network resources.

Judge Nadel said that it is not fair for AT&T to make a promise of “unlimited data” to Spaccarelli when he buys the phone while burying terms in his contract that give the company the right to cut down data speeds. Spaccarelli did not quite uphold his side of the contract, and that was a reason for the high data usage. He used the iPhone for “tethering” (using the iPhone to provide Internet access for his iPad). AT&T requires an extra payment for tethering, which Spaccarelli did not do.

-Bill at

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