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 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Tuesday April 29, 2025 1:30 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iPhone 17 Pro on Desk Feature

All iPhone 17 Models Again Rumored to Feature 12GB of RAM

Tuesday April 29, 2025 3:36 am PDT by
All upcoming iPhone 17 models will come equipped with 12GB of RAM to support Apple Intelligence, according to the Weibo-based leaker Digital Chat Station. The claim from the Chinese leaker, who has sources within Apple's supply chain, comes a few days after industry analyst Ming-Chi Kuo said that the iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max will all be equipped with 12GB of RAM. ...

Top Rated Comments

Primejimbo Avatar
172 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
172 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
172 months ago
The United States is in dire need of upgraded broadband.
Score: 24 Votes (Like | Disagree)
FSMBP Avatar
172 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
172 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
172 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)