T-Mobile To Pay $48 Mln. Fine For Hidden Limits On Unlimited Data

(RTTNews) - T-Mobile US Inc. (TMUS) has agreed to pay $48 million to settle a federal investigation on whether the service provider's adequately disclosed speed and data restrictions for its "unlimited" data plan subscribers.

"Consumers should not have to guess whether so-called 'unlimited' data plans contain key restrictions, like speed constraints, data caps, and other material limitations," said FCC Enforcement Bureau Chief Travis LeBlanc.

"When broadband providers are accurate, honest and upfront in their ads and disclosures, consumers aren't surprised and they get what they've paid for. With today's settlement, T-Mobile has stepped up to the plate to ensure that its customers have the full information they need to decide whether 'unlimited' data plans are right for them," he added.

The settlement includes a $7.5 million fine and $35.5 million in consumer benefits for T-Mobile and Metro PCS customers with "unlimited" plans, and at least $5 million in services and equipment to U.S. schools, the U.S. Federal Communications Commission said.

The FCC said it received complaints from T-Mobile and MetroPCS customers who felt they were cheated when T-Mobile "de-prioritized" data speeds after a fixed amount of data usage each month under the "unlimited" data plan.