T-Mobile has settled with the Federal Communications Commission (FCC) after agreeing to pay $48 million for limiting its 'unlimited data' plans. The settlement includes a $ 7.5 million fine and a minimum $5 million in services and equipment to American schools. Remaining $35.5 million is earmarked for providing consumer benefits to T-Mobile and Metro PCS customers with unlimited plans. Eligible customers will be sent the necessary notices on December 15.
In 2015, T-Mobile reported slowing down its data speed for customers belonging to the top 3 percent of data usage. However, the disclosure was made only after numerous complaints were filed. The restriction was also applicable to MetroPCS users, who were using T-Mobile's network. However, FCC was more concerned about T-Mobile's marketing tactics than actual throttling.
According to FCC, marketing of such plans as 'unlimited data plan' amounted to deception. It also held the practice to be in contravention to the 2010 Open Internet transparency rules. FCC also found that such throttling of speed left data services "unusable" for many hours every day.
In a statement, FCC Enforcement Bureau Chief Travis LeBlanc, said that the consumers should not be required to know about restrictions concerning such as data caps and speed constraints.
This is the second time FCC has taken action regarding disclosures of unlimited data plans. Earlier in 2015, FCC slapped a $100 million fine against AT&T. However, no further actions were taken for enforcing the fine.
T-Mobile chief executive officer John Legere tweeted about reaching a "good settlement with FCC." The tweet also stated that T-Mobile believes that "more info is best for customers."