iPhone data plan

Pro-tem Judge Russell Nadel said it isn't fair for AT&T to slow down a person's iPhone after selling them an "unlimited data" plan.

According to a statement released by AT&T they only throttle "the top five percent of the heaviest data users." iPhone users who are approaching the the top five receive a message that advises them to use Wi-Fi to avoid "reduced speeds." AT&T's throttling policy didn't sit well with many customers, and it even caused one man to take the carrier to small claims court.

An unemployed truck driver and student sued AT&T after they throttled his iPhone and he won. Matt Spaccarelli was awarded $850 in a California small claims court. This could spell trouble for AT&T who does not allow its 17 million customers with unlimited data plans to consolidate their claims into a class action suit.

Hot on the heels of AT&T changing its tiered data plans once again, reports have surfaced regarding data throttling on unlimited plans. Although the unlimited option has been discontinued, some iPhone users are grandfathered into the plans and continue to enjoy no monthly limits on usage.

Only catch is that AT&T will start throttling data speeds when a threshold is reached, typically when a customer enters the top five percent of data usage. According to MacRumors this threshold has decreased significantly and now includes subscribers who have reached just 2GB of usage. This number is even lower than the 3GB tiered data plan costing $30 per month that was recently announced.

AT&T is changing its smartphone data plans on Sunday January 22. The announcement modified pricing and data tiers across the board, with new plans offered for not only the iPhone but tablets including the iPad as well. Current plans at 200MB for $15 per month, 2GB for $25 and 4GB for $45 with tethering are set to become a thing of the past for new subscribers.

The goal of the new plans is said to be preventing overages on users' data plans, but with fierce competition from other mobile service providers, AT&T is looking to stay competitive amid the relentless growth of mobile data consumption. Price hikes will come with additional data allowances in the new tiered plans.

Sprint is no longer the only carrier to offer the iPhone 4S with unlimited data in the US. Regional carrier C Spire Wireless is poised to start selling the Apple smartphone on its network starting November 11. Subsidized prices for the device will be the same as the three major carriers, however data and voice plans are less expensive.

Once catch, the two lower unlimited data plan tiers ($50 and $70 per month) don't include streaming data, as one would use for video and music. This means that for true unlimited data usage users will have to opt for a $90 or $100 per month data and voice package. For those who aren't familiar, C Spire was formerly known as Cellular South, and covers Mississippi along with some of Alabama, Florida and Tennessee.

Some Sprint subscribers have been complaining about slow data speeds since the carrier launched the iPhone 4S on Friday. Sprint responded to the complaints by telling PCMag.com there have only been a "small number of reports," and that their 3G network is fine.

"As always, Sprint is carefully monitoring the performance of the 3G network. We are looking into a small number of reports of slow data speeds when using the iPhone 4S, however there are also reports showing that Sprint’s network is the fastest, such as the Gizmodo report that came out earlier today. Speed tests represent a moment in time and are subject to many variables including weather, time of day, device, and proximity to a tower. Sprint will continue to monitor the feedback we are getting from our customers and will investigate and resolve any issues that may arise."