AT&T seeks quiet settlement with iPhone user who won throttling case

AT&T Mobility (NYSE:T) wants to reach a quiet settlement with an iPhone customer who recently won a small claims court case against the carrier for throttling his data speed on an unlimited data plan. A law firm representing AT&T, Eagan Avenatti LLP, sent a letter to customer Matthew Spaccarelli, and said AT&T is interested in a settlement discussion but only if the talks remain private. Spaccarelli won an $850 award in small claims court after a judge agreed AT&T broke its promise to provide "unlimited" service. AT&T claims that Spaccarelli violated the terms of his contract by using his smartphone for tethering, which is not allowed on unlimited plans. The settlement is the latest in a series of developments around AT&T's throttling practices. Earlier this month AT&T tweaked its throttling approach and now will throttle unlimited HSPA users after 3 GB of usage and LTE users after 5 GB of usage, and subscribers' speeds will remain slowed throughout the rest of their monthly billing cycle. Article

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