AT&T Hit with a $100 million fined for internet speed cap on 'unlimited' data plans

WASHINGTON — AT&T Mobility LLC has been fined with a record $100 million fine Wednesday for offering consumers "unlimited" data then improperly slowing their Internet speeds after they reached a certain bandwidth level. The company says it will fight the charges.

The Federal Communications Commission (FCC) said Wednesday that the country's second-largest cellular carrier misled consumers into buying plans they believed would give them unlimited ability to send and receive data, including Web browsing, GPS navigation and streaming videos. But once the consumer hit a certain level, the data on unlimited plans would be slowed down significantly, at speeds lower than advertised, the FCC said.

It's not unusual for phone companies to slow, or "throttle," speeds on a network as a way to manage congestion.

But consumers are unlikely to receive any money from the fine, which will go instead to the U.S. Treasury, said the agency official.