Late last year, the FTC filed a lawsuit against AT&T, stating that the carrier was throttling data for users on unlimited plans, a practice that has allegedly been going on since 2011. AT&T is now looking to file a motion to dismiss the lawsuit by invoking the Tier II "common carrier" clause, which exempts the carrier from FTC's jurisdiction and places it under the purview of the FCC.
Here's what AT&T states:
AT&T plainly qualifies as a 'common carrier' for purposes of Section 5 because it provides mobile voice services subject to common-carrier regulation under Title II of the Communications Act. The fact that AT&T's mobile data services are not regulated as common-carrier services under the Communications Act is irrelevant. The text, structure, history, and purpose of Section 5 leave no doubt that its common-carrier exemption turns on an entity's 'status as a common carrier subject to [an Act to regulate commerce],' not its 'activities subject to regulation under that Act.'
The FTC cannot rewrite the statute to expand its own jurisdiction.
The carrier already settled an $105 million lawsuit with the FTC in October over mobile cramming, in which it charged customers "millions of dollars in unauthorized third-party subscriptions and premium text messaging services."
Even if AT&T manages to successfully get the FTC suit dismissed, it will have to deal with the FCC, who is also looking to sue the carrier for the same reasons. As noted by AT&T in its motion to dismiss the FTC lawsuit:
The FCC's Enforcement Bureau is now actively considering whether to issue a Notice of Apparent Liability against AT&T alleging that AT&T's public disclosures of its MBR [maximum bit rate] program failed to satisfy the FCC's transparency rule and proposing statutory forfeitures. The FTC seeks to litigate the very same issues in an inappropriate parallel proceeding.
AT&T said that while mobile data was not a common carrier service, it does face regulations under Title III of the Communications Act and Section 706 of the Telecommunications Act.
Source: AT&T (Scribd), Ars Technica
Reader comments
AT&T files motion to dismiss FTC's data throttling suit, invokes common carrier status
Throttled data doesn't mean unlimited data. ....they never mentioned " high speed unlimited data". ;big difference. ......both of these still mean you have unlimited data
Posted via the Android Central App
I'm not very familiar with these types of regulations, so I'm probably wrong... but could invoking common carrier status now potentially turn around and bite them if they try to get around net neutrality later?
Whoever is on at&t and verizon deserve to be over change!
Posted via Android Central App
Yes because you get what you pay for. AT&T and Verizon have the best coverage hands down. We like to know if we travel 5 miles out of city limits that we are still able to get service.
Posted Via AT&T Note 3
I swear, all of these carriers want to do whatever the hell they want without any sort of regulation whatsoever.
At&t: "So what if we told the customer it was unlimited when they signed their contract. It's more profitable for us and our shareholders if they're on a share plan and because of that, we don't feel that they should be able to use an unlimited amount of data so we're going to throttle them until they switch their plan or leave. Either way, we'll win."
Throttling u , doesn't mean the data is not unlimited. ....where did they say " high speed" unlimited data? Big difference between the two
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I swear if that pos company AT&T gets off then there is no justice left in this country. They should not be allowed to throttle existing unlimited data users or at the very least make the throttling reasonable like 2Mps up and down.
Quit with all the corporation love and free market bs. AT&T along with other carriers need more regulation. Customers that have been with the company 10 or more years had their unlimited data plans forever and then AT&T up and imposes throttling on these customers.
Get with the times, Netflix and streaming music is on every smartphone. That's what a smartphone is supposed to be used for. AT&T does not throttle cause of network issues, they throttle because they want more money. They want unlimited data users to go to mobile share plans and to be able to charge more. Just few years ago they were saying the same thing about phone minutes but now they give out unlimited minutes like ice cream. People rely more on data so cell companies figure they can pad their profit margins by metering data connections. I call bullsh!t.
They have or never will throttle my data. One of the perks of having a good friend in corporate :)
Posted Via AT&T Note 3
So on the one hand AT&T is arguing that mobile data shouldn't be regulated under Tier2, and on the other arguing that it is already regulated under Tier2. Man, their lawyers must be having a hard time keeping a straight face.
They throttle the crap outta my plan. Lucky to have unlimited but guarantee within a week of a new billing cycle get DSL speeds. It's outrageous.
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OK Verizon just completely took unlimited take them to court
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"The fact that AT&T's mobile data services are not regulated as common-carrier services under the Communications Act is irrelevant."
I don't think that's how that works...
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I'm sure the FCC and AT&T have something already worked out. Hence why they are pushing to have them "look at it" instead.
Posted via the Android Central App
As a Grandfathered Unlimited Customer, I just wanted Unlimited DATA, not throttled, not capped, just plain old Unlimited DATA.
I want to see at&t forced to back off their network management practices like VZW was, but I realize that is probably a pipe dream.
In the end of the day caped DATA is nothing more than adding more $$$$$$ to the bottom line and while as a consumer I hate it, I realize as a stockholder it is returning $$ to me, so I guess I am talking out of both sides of mouth.
Regardless I hope that FTC and FCC both sue the heck out of at&t, I will gladly loose a little money on my stocks holdings to see David beat Goliath in this case.
Dan
The whole argument they started with this about people using to much and slowing down the network is pretty much in the trash now.. They introduced the data roll over thing and now have no room to stand on that people using data to much is causing this if they can afford to allow using that pay for a bucket of it and not use all of it get more the following month to use. When Iwas on my unlimited plan I used about an average of three or 4 GB a month at most. They slowed me down to a crawl after I starting to go over two in the end. I switched over to the family plan and got 15GB shared, most of which I have set to me, my kids and wife hardly use 2GB combined. I use as much of it a month as I can, but still have a hard time using all of it.
My point is I use MORE now than I ever did on unlimited and AT&T is full of crap and just greedy. I also pay less now then when I was on unlimited,
One last thing on this. If the FCC or the FTC are smart they would grab some unlimited customers for testimony and show the data use on the ones that left it for the family share plans. I bet they could find a lot more like me that end up using more than before and pay less.
Nice dan, nice to see an actual stockholder that holds ethics more important that greed
I'm an At&t customer and I hope they get sued to hell and back.
Posted via the ACA on NEXUS 6
They want their cake and eat it, too. If AT&T is successful in getting the FTC to drop it's suit on data throttling because they claim "Common Carrier" covered under the FCC, they will go to the FCC, and it's related case, and claim they are *not* a "Common Carrier" and should be covered under the FTC. They want the best of both worlds.
Unfortunately, what AT&T fails to acknowledge is that they don't own the frequencies. The frequencies are leased to them by the FCC, hence the Federal Government and hence owned by the public, for use under common carrier status. AT&T received those frequencies, by bid, purchase or other acquisition, by representation as being [one of] the best to utilize the frequencies in the best interest of public benefit. If they aren't going to use the said frequencies in accordance with the whole interest of public benefit at it's core of use - by basically complying with Common Carrier regulations, as a member of that owning Public, I'll be happy to have AT&T relinquish all frequencies. And, I will be happy to give those frequencies free of charge to a company that will comply with those Federal regulations of being a Common Carrier. Free trade is Free Trade.
Very well said. Give said Hz to tmo, and watch every other carrier lose customers in droves.
I would then leave vzw.
Posted via the Android Central App
You could give them all the bandwidth, still won't help the network much
Posted by my soon to be retired Note 3
Sure would imo. If AT&T supposedly has the second best coverage, how could it not help tmo? Obviously they still need to set up and maintain, but with the lack of available bandwith, how can they possible gain a foot hold on a bigger network with out getting some more?
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This is exactly why I switched to no contract tmo... and the LTE bandwidth and speed I get in Scottsdale AZ is awesome!
Haters still hating that sprint could not get tmobile
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Sprint would not have been allowed to merge with t-mo, the regulators would of kept them separated for fairness reasons and competition, which is odd because together they would not be as big as Verizon with 100 million strong.
Sorry, but I have to do this: 'would've' (would have) not 'would of'.
I need not comment really, that sums it up nicely.
Posted via AC App from my S4 mini WITH an LED CrackLight ;-)
Would be interesting if they bought out some sort of network capacity graphics in defence of their throttling but they don't seem to fight it that way.
Very well written comment, Phil give this man a job.
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The initial premise is so stupid, I doubt even THEY would try that. Most likely, they believe the FCC suit to be much easier to win or will result in a more reasonable loss than with the FTC.
Sadly, out of the big four, they're still the best option. T-mobile and Sprint don't even bother covering any of the more rural areas around me.
Here in the midwest sprint covers a lot more rural than t-mo which will drop out once you leave a major highway.
If what you are proposing happens, then this country's system is no longer would be called Capitalism.....at it's best !!!
If they succeed in the common carrier argument, I don't think that they would be able to try and flip it, especially given that the FCC could use the court records for the FTC case to counter said statement.
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At&t sucks ! So glad I left.
Verizon :
Stop it AT&T.! You're screwing it up for everybody!
AT&T :
If I get hit, you get hit.
Play nice kids.
Galaxy Note 4
Galaxy S III
LG G2
"AT&T said that while mobile data was not a common carrier service"
Bull Hockey
Given their Business Practice of premium prices for mobile data and they have set up their cellular service to revolve around mobile data as their "cash cow", and the fact you have to have a data plan to purchase a subsidized smart phone for which a majority of their patrons do, I don't see how the hell it'll stand up.
Unless ATT is referring to every business it manages, like Uverse cable internet, and land line phones and such.
Agreed. Got a Nexus 6 discovered a manufacturing defect 9 days later. AT&T will not exchange it now because of course its "defective"! So now I got to ship my N6 back wait forever and a month and go without a phone until they ship me the new one. Suck a$$ customer service on AT&Ts part. Lesson boys and girls. When buying a phone from AT&T, go over that thing with the finest toothed comb before you leave that store!
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Let the battle begin
Nothing I shoot ever gets back up again
OT. Loved that roots album on your avi
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