Clauses in AT&T Contracts Have Always Provided for Limits on 'Unlimited' Data Plans

A number of customers have expressed outrage and disappointment at AT&T's various efforts at throttling users with older "unlimited" data plans. The most recent change slows unlimited data users to download speeds of 256 Kbps after using 3GB of data.

Several Twitter users felt that AT&T was violating their contract and wanted to cancel their contract or file a class action lawsuit against the company. Blogger Jeff Jarvis feels that throttling is "fraud", and tech writer Matt Buchanan had this to say:

I think it's fair to expect the contract you signed up for remains the contract you signed up for.

But is AT&T's throttling of unlimited data users a violation of its contract with users? TOSBack is a website that tracks changes to the terms of service of various services, including both Apple and AT&T.

The contract from June 26, 2007 -- just a few days before the original iPhone went on sale -- includes a number of stipulations governing exactly how and why the iPhone's unlimited data plan can be restricted, including banning some video downloading and streaming. Most importantly, for customers now experiencing throttling, is this passage:

AT&T reserves the right to (i) limit throughput or amount of data transferred, deny Service and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited above or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.

attlogo375wide
Language similar to this continues in every draft of the contract through today's version. The current wireless customer agreement includes this language in section 6.2:

AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.

AT&T believes that it is well within its rights to throttle users on unlimited data plans, even as a Californian iPhone user won an $850 small claims judgement against the company over throttling. AT&T has promised to appeal. A class action suit might be the normal evolution of such a complaint, but AT&T's subscriber contract prohibits class action or jury trials, leaving arbitration and small claims as options for unhappy customers.

Not everyone agrees that AT&T is misbehaving by throttling. SplatF's Dan Frommer opines that users are not acknowledging reality when they complain about AT&T terminating unlimited data plans.

Here’s the big picture bottom line: If you use a lot of data, you are clearly getting some sort of value out of it. Value isn’t free. The world’s finite resources simply aren’t trending toward free. That isn’t logical. I predict most of you will be spending significantly more per month for wireless data in 5 and 10 years than you do today. You’ll be getting faster and better service, and more value out of it, but it won’t be cheaper.

Please get over your emotional battle — and extinguish any legal threats, that’s silly — and join us in reality. If you use a lot of mobile data, be happy about it, and be happy paying for it. It’s worth it. And consider trying the add-on tethering plan for the iPhone, it can be useful if you carry a laptop or iPad.

AT&T's current data plans offer 300MB/month for $20, 3GB/month for $30, or 5GB/month for $50 (including tethering), with each additional 1GB costing users $10 on the higher allocation plans.

Popular Stories

iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Features Leaked in New Report, Including Under-Screen Face ID

Tuesday December 16, 2025 8:44 am PST by
Next year's iPhone 18 Pro and iPhone 18 Pro Max will be equipped with under-screen Face ID, and the front camera will be moved to the top-left corner of the screen, according to a new report from The Information's Wayne Ma and Qianer Liu. As a result of these changes, the report said the iPhone 18 Pro models will not have a pill-shaped Dynamic Island cutout at the top of the screen....
apple music chatgpt

ChatGPT's Apple Music Integration Is Now Live

Wednesday December 17, 2025 3:50 pm PST by
There's now a dedicated Apple Music app for ChatGPT, which allows ChatGPT to make music recommendations and build playlists. Apple Music can be added to ChatGPT through the Settings section in the Mac app, website, or iOS app. Apple Music is listed under the apps option, and connecting to it requires signing in with your Apple Account for authorization purposes. ChatGPT can be used to...
apple beta 26 lineup

Apple's 2026 and 2027 Product Roadmap: Foldable iPhone, iPhone 18 Pro, M5 Macs, and More

Tuesday December 16, 2025 4:42 pm PST by
There has been a whirlwind of rumors over the last few days, sourced from leaked internal software designed for the iPhone and the Mac, and news sites like The Information. Below, we have a quick recap of everything we've heard this week, which serves as a guide to Apple's product plans in 2026 and beyond. We've organized the info by likely release date, though there are some products that...
apple iphone air battery pack

Apple Aims to Boost Popularity of iPhone Air 2 in Two Ways

Tuesday December 16, 2025 11:06 am PST by
We have been covering iPhone 18 Pro, iPhone 17e, and iPhone Fold details from The Information's report about future iPhone models, and next up is the iPhone Air 2. The report says that Apple aims to make the iPhone Air 2 more attractive in two ways. First, Apple is apparently considering adding a second rear camera to the device, which would resolve a key limitation. The current iPhone...
iOS 26

iOS 26.3 Beta 1 Features: What's New So Far

Monday December 15, 2025 4:23 pm PST by
Apple is testing iOS 26.3, the next version of iOS 26 that will launch around January. Since iOS 26.3's testing is happening over the holidays, it is a smaller update with fewer features than we've seen in prior betas. We've rounded up what's new so far, and we'll add to our list with subsequent betas if we come across any other features. Transfer to Android Apple is making it simpler...
Apple Logo Top Half

Early iOS 26 Software Leak Uncovers Dozens of Upcoming Apple Features

Monday December 15, 2025 3:05 pm PST by
Software from an iPhone prototype running an early build of iOS 26 leaked last week, giving us a glimpse at future Apple devices and iOS features. We recapped device codenames in our prior article, and now we have a list of some of the most notable feature flags that were found in the software code. In some cases, it's obvious what the feature flags are referring to, while some are more...
apple beta 26 lineup

Apple Leak Confirms Work on Foldable iPhone, AirTag 2, and Dozens More Devices

Monday December 15, 2025 2:05 pm PST by
Last week, details about unreleased Apple devices and future iOS features were shared by Macworld. This week, we learned where the information came from, plus we have more findings from the leak. As it turns out, an Apple prototype device running an early build of iOS 26 was sold, and the person who bought it shared the software. The OS has a version number of 23A5234w, and the first...
a15 chip

Apple Tested a MacBook With the A15 Chip

Wednesday December 17, 2025 7:19 am PST by
An internal Apple kernel debug kit suggests Apple has tested a MacBook with the A15 chip, alongside a separate A18 Pro-based MacBook that appears to be closer to a shippable product. The information comes from internal kernel debug kit files used by Apple engineers. The kit was accidentally released on Apple's website earlier this year, but it was quickly pulled after information started...
maxresdefault

Apple Developing iMac Pro With M5 Max Chip

Tuesday December 16, 2025 7:30 am PST by
Apple is developing a high-end iMac featuring the M5 Max chip, according to information from leaked internal software. Subscribe to the MacRumors YouTube channel for more videos. The finding comes from leaked kernel debug kit files used by Apple engineers. These kernel debug kit files enumerate unreleased Apple hardware by internal identifiers, such as codenames and platform names, and they...

Top Rated Comments

Primejimbo Avatar
180 months ago
Who the hell still uses ATT?

It works where I need it too and Verizon doesn't, so why not? Why do people use Sprint, T-Mobile, Verizon and others? That was probably one of the stupidest comments I have ever read on here. :rolleyes:
Score: 32 Votes (Like | Disagree)
snowmoon Avatar
180 months ago
AT&T reserves the right to (i) limit throughput or amount of data transferred, deny Service and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited above or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network.
This does not deal with the situation at hand since they can't claim that 3G "negatively impacts wireless network or service levels" while turning around and selling 5G/month service to others.
Score: 29 Votes (Like | Disagree)
Peace Avatar
180 months ago
The United States is in dire need of upgraded broadband.
Score: 24 Votes (Like | Disagree)
FSMBP Avatar
180 months ago
Maybe they shouldn't have offered "Unlimited Data" when they didn't have the means to keep it up.

I know they're people who 'abuse' the network, but don't invite people when you don't have enough seats at the table.
Score: 20 Votes (Like | Disagree)
g-boac Avatar
180 months ago
It's clearly not keeping with the spirit or intent of an unlimited data plan to simply cap the data and the cost at the same as a paid data plan - by definition this is not "unlimited".

I understand that it's fair to reasonably draw the line at some point, but this can effectively be done on a case-by-case basis where someone is truly and egregiously exceeding the mean usage by several standard deviations.
Score: 16 Votes (Like | Disagree)
dcranston Avatar
180 months ago
I'm not that up in arms over the "unlimited" thing, although it does seem like a misnomer. I think the precedent which seems illegal is this part:

A class action suit might be the normal evolution of such a complaint, but AT&T's subscriber contract prohibits class action or jury trials, leaving arbitration and small claims as options for unhappy customers.

Having language that restricts how one is able to take a company to court seems...very much not okay.
Score: 15 Votes (Like | Disagree)