AT&T offers quiet settlement with iPhone user

Mar 13, 2012 By PETER SVENSSON , AP Technology Writer

(AP) -- AT&T is offering a settlement to an iPhone user who won a small-claims case that alleged the company was slowing down his "unlimited" data service.

AT&T isn't saying if it's offering Matthew Spaccarelli more money, but it says it will look at shutting off his service if he doesn't sit down to talk. AT&T had no immediate comment.

Spaccarelli, of Simi Valley, Calif., admits that he has used his to provide Internet access for other devices, which is against AT&T's contract terms.

AT&T has about 17 million smartphone customers on "unlimited" plans, and has started slowing down service for users who hit certain traffic thresholds. Spaccarelli maintained at his Feb. 24 small-claims hearing that AT&T is breaking its promise to provide "unlimited" service. A judge awarded him $850.

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