FCC fines AT&T for slowing \"unlimited\" data plans

Related Story

COLUMBIA - The Federal Communications Commission fined AT&T $100 million for slowing down data speeds for customers who bought an unlimited data plan. 

According to the FCC, after customers used a certain amount of data, the company capped speeds at slower rates. The cap provides almost "dial-up" speed service, around 500 kilobytes per second.

To put it in perspective, the speeds required to run Facetime are around 700 kilobytes per second. 

These practices are accepted as legal, but the FCC accuses AT&T of not adequately notifying its customers of the practice. 

This fine is the largest in FCC history. 

AT&T disputes the claim, and released an official statement about the accusations:

"We will vigorously dispute the FCC's assertions. The FCC has specifically identified this practice as a legitimate and reasonable way to manage network resources for the benefit of all customers, and has known for years that all of the major carriers use it. We have been fully transparent with our customers, providing notice in multiple ways and going well beyond the FCC's disclosure requirements."