AT&T to raise insurance, throttle heavy data users ahead of iPhone 5 launch

Posted:
in iPhone edited January 2014
AT&T plans to raise insurance costs for iPhone users and begin to throttle the top 5 percent of its data users as it prepares for the launch of Apple's fifth-generation handset.



The wireless provider on Friday updated its insurance information webpage to note that starting Oct. 4, rates will jump from $5 to $7 for both new and existing customers.



As Electronista points out, the price hike arrives in conjunction with the establishment of a new device tier ( Device Tier 3) for iPhone and "other devices" that carries a $199 non-refundable deductible.



The changes go into effect the same day Apple has scheduled a media event to take the wraps off its latest line of iPhones. As such, the timing may suggest that Apple and it partners may begin accepting pre-orders shortly after the announcement, given the new insurance plan will go into effect the same day.



Another change coming to AT&T customers ahead of the new iPhone is the throttling of data speed for its heaviest users.



Some of these customers began receiving text messages from AT&T this week, advising them that their data usage places them in the top 5 percent of the network and warns of reduced speeds beginning Oct 1st. Reddit user skelatwork posted an image of a text he received from the carrier on Thursday, claiming he had used over 11GBs at the time.







AT&T released a statement in July preparing users for the bandwidth cap, though it has never outlined what usage statistics constitute being in the top 5 percent.
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Comments

  • Reply 1 of 43
    Occupy at&t!!!
  • Reply 2 of 43
    Quote:
    Originally Posted by AppleInsider View Post






    AT&T released a statement in July preparing users for the bandwidth cap, though it has never outlined what usage statistics constitutes being in the top 5 percent.





    Of course it didn't. This way it can claim any user is in the top 5%, thereby justifying throttle all users eventually.
  • Reply 3 of 43
    Quote:
    Originally Posted by dualie View Post


    Of course it didn't. This way it can claim any user is in the top 5%, thereby justifying throttle all users eventually.



    Certainly all iCloud users.
  • Reply 4 of 43
    Quote:
    Originally Posted by dualie View Post


    Of course it didn't. This way it can claim any user is in the top 5%, thereby justifying throttle all users eventually.



    Couldn't this be considered a material breach of the contract with it's users and allow users to break their contract, to go with, say Sprint- who says they will not throttle users?
  • Reply 5 of 43
    Quote:
    Originally Posted by iansilv View Post


    Couldn't this be considered a material breach of the contract with it's users and allow users to break their contract, to go with, say Sprint- who says they will not throttle users?



    Sprint does throttle users who exceed 5GB
  • Reply 6 of 43
    Quote:
    Originally Posted by iansilv View Post


    Couldn't this be considered a material breach of the contract with it's users and allow users to break their contract, to go with, say Sprint- who says they will not throttle users?



    How? You're still allowed unlimited data usage. There's no stipulation in the contract that states your data will always be at a high speed.

    And now that the major providers have either tiered or capped data plans where are you going to go? Face it whether you like it or not you're stuck with your current provider for life.
  • Reply 7 of 43
    I received the email this week about high data usage (over 14 Gb in the past month with unlimited plan)



    They can throttle all they want... I'm still gonna use it...



  • Reply 8 of 43
    All they accomplish is stifle innovation and handcuff users.
  • Reply 9 of 43
    At least they could have made it cheery - in a Sirius Cybernetics sort of way. Thank goodness ATT isn't in charge of everything...



    "Hi there. You're among the top 5% of oxygen users this month. Click here to find out how to avoid reduced respiration rates."



    By the way, what is the way to avoid reduced data rates? Stop using the service? Pay more?
  • Reply 10 of 43
    Quote:
    Originally Posted by iansilv View Post


    Couldn't this be considered a material breach of the contract with it's users and allow users to break their contract, to go with, say Sprint- who says they will not throttle users?



    If you are already OOC, it is a hollow remedy.
  • Reply 11 of 43
    Quote:
    Originally Posted by digitalpen View Post


    (over 14 Gb in the past month with unlimited plan)



    What on earth are you using that much data for?
  • Reply 12 of 43
    Quote:
    Originally Posted by ghostface147 View Post


    What on earth are you using that much data for?



    Its purpose, probably.
  • Reply 13 of 43
    Quote:
    Originally Posted by ghostface147 View Post


    What on earth are you using that much data for?



    Let me clarify, that is just for my 11 and 9 year old sons who share an iPhone. Everything from YouTube... a lot of YouTube to web surfing, etc. There is a lot on YouTube...
  • Reply 14 of 43
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by ghostface147 View Post


    What on earth are you using that much data for?



    I was tipping 100GB/month at one time with my "contract violating" tethering.
  • Reply 15 of 43
    How are people hitting 11 gigs and higher without tethering? I stream Netflix to my tv from my phone, and the highest I've ever gone is 6.
  • Reply 16 of 43
    Quote:
    Originally Posted by daylove22 View Post


    Sprint does throttle users who exceed 5GB



    It has never throttled my connection, even in the months when I have used 10-20GB. I never have a problem streaming video either.
  • Reply 17 of 43
    Quote:
    Originally Posted by dualie View Post


    It has never throttled my connection, even in the months when I have used 10-20GB. I never have a problem streaming video either.



    It will be very interesting to see how that changes if they get the iPhone 5 four days from now.
  • Reply 18 of 43
    Wouldn't it be a good time for a hard hitting lawyer to step up to the plate. You have to figure that in order to claim excessive use the customer has the right to know what is the limit. The publicity fall out would certainly be equal to Netflix, if not worse since people just have a negative gut reaction to ATT. Any brave soul out here?
  • Reply 19 of 43
    You would like to think AT&T would help their customers by putting wifi everywhere in public spaces, trains, subways, malls etc. anywhere really. They need more than just a Barnes and Noble, McDonalds and Starbucks and where ever else it currently is.



    I'm currently living in South Korea and Olleh, one of the carriers of the iPhone here has "Olleh Wifi" everywhere for their customers, street, bus, subways, trains. It's really nice.
  • Reply 20 of 43
    If the heavy data users cut back soon people that are using 5GB will be considered heavy users and be throttled. Keep in mind ATT said ' top five percent in their statement' so the rest of us are next
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