Unlimited Data Slowdown at AT&T

Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

The FCC accused AT&T of improperly slowing down Internet speeds for customers who had signed up for “unlimited” data plans and imposed a $100 million fine on June 17.

Questions:
1. How long has this practice been impacting customers?
2. Has the company violated FCC rules for similar issues prior to this current one?
3. Why has this action come at a particularly bad time for AT&T?
4. Discuss the costs/benefits and legitimacy of this practice in managing networks.

Source:
Fung, B. (2015). AT&T just got hit with a $100 million fine after slowing down its ‘unlimited’ data. The Washington Post, June 17 (Retrievable online at http://www.washingtonpost.com/blogs/the-switch/wp/2015/06/17/att-just-got-hit-with-a-100-million-fine-after-slowing-down-its-unlimited-data/?hpid=z1)