T-mobile hit with $48 million penalty in 'unlimited data' dispute

T-Mobile has agreed to pay nearly $50 million after misleading customers about an unlimited data plan. Unlike AT&T, it chose to settle with the Federal Communications Commission (FCC) rather than risk a court case.

The agreement came after complaints from a customer who had signed up to an unlimited plan for mobile data use.

At times when the service was most heavily used, T-Mobile "de-prioritized" -- in other words, slowed down -- data speeds for customers who used the most data.

T-Mobile isn't in trouble for the slowing down itself, but rather that it breached rules which say custom- ers must be made aware of such rules before they sign up.

The commission noted that even when T-Mobile acknowledged it had such a policy, it didn't provide detail of the threshold for triggering slowdowns or the amount by which speeds would be slowed.

The company will pay a $7.5 million fine and give the affected customers a total of $35.5 million worth of benefits such as discounts on data packages (another instance that will actually cost the guilty party nothing) and pay $5 million into a program designed to help underprivileged schoolchildren access computers for homework.

It would be more impressive if the $35.5 million dollars in cash was added to the program for underprivileged schoolchildren.