T-Mobile to pay $48 million in settlement over throttling customers with heavy data usage

At issue is how the carrier slowed down connections for those on unlimited plans without any type of notification.

T-Mobile CEO John Legere and the root of the FCC's concern.

Credit: YouTube

Call it the “Un-fine.” 

Perhaps that’s how T-Mobile, the self-described uncarrier, will spin Wednesday’s settlement with the FCC. The nation’s third-largest wireless network will pay $48 million total including customer benefits, education donations, and a fine as part of an agreement reached with the FCC.

Good settlement with FCC today. @TMobile believes more info is best for customers. #themoreyouknow https://t.co/XFY6dHPfN6

— John Legere (@JohnLegere) October 19, 2016

At issue was how T-Mobile throttled the connection for customers who were in the top three percent of data usage. Customers were unaware in advance that they were having their connections intentionally slowed down.

That’s a big no no, as the FCC requires full disclosure and notification for a carrier to take this kind of action. To make amends, T-Mobile has also agreed to give 20 percent off accessories to customers of both T-Mobile and MetroPCS who were impacted by the policy. 

Additionally, affected customers will be eligible for 4GB of additional data under the “Simple Choice MINT” plan. The customer benefit program is to cost the carrier $35.5 million. A $7.5 million fine is  to be paid directly to the U.S. Treasury and $5 million will be donated for school services and equipment. 

The impact on you: If you’re a T-Mobile or MetroPCS subscriber who is impacted by the settlement, you should receive a notification from your carrier. This isn’t the first time T-Mobile has run into throttling issues, as many raised concerns about how data was throttled through Binge On.