From DailyTech: The U.S. Federal Communications Commission (FCC) announced today its intent to fine AT&T, Inc. (T) $100M USD for allegedly pulling a bait-and-switch on customers regarding "unlimited" data. The fine is the second major fine levied against the carrier by the FCC in under a year.
The story of how AT&T got mired in the controversial practice of throttling its users' data connections is closely tied to the disruptive effects of AppleInc.'s (AAPL) iPhone.
At the heart of the debate was AT&T's "unlimited" data program, which alongside Apple's iPhone, served as a powerful lure to bring in customers. With the launch of the iPhone in 2007, AT&T was granted a five-year exclusivity arrangement in the U.S. In return for the promise of being the only American carrier with the coveted device, AT&T faithfully initiated a major marketing push the rocketed the forward-thinking smartphone to the top of sales charts.
It might have done too good a job at pitching the device. According to documents AT&T initially held the rights to iPhone exclusivity through 2012. But in 2009, with its sales on fire, Apple had the leverage to renegotiate and force AT&T not only to reportedly take a smaller cut of the profit, but also to lop a year off the deal.
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