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Wed, Mar 17, 2010 - 07:23 PM EDT  —  AAPL: 224.12 (-0.33, -0.15%)  |  NASDAQ: 2389.09 (+11.08, +0.47%)

AT&T Wireless changes terms of service to forbid video streaming, filesharing, data tethering
Friday, April 03, 2009 - 02:53 PM EDT

UPDATE: 8:42pm EDT: AT&T Wireless retracts terms of service changes, apologizes for error - April 03, 2009

"AT&T's taking some aggressive steps to manage network traffic," Nilay Patel reports for Engadget.

"The carrier updated its data plan terms of service last night to specifically single out and prohibit 'downloading movies using P2P file sharing services, customer initiated redirection of television or other video or audio signals via any technology from a fixed location to a mobile device, web broadcasting, and... any applications that tether the device... to Personal Computers or other equipment,'" Patel reports.

Full article here.

Electornista reports, "The difficulty is that such terms may not only restrict the likes of BitTorrent clients, but also mainstream video applications, such as CBS' TV.com app for the iPhone. The wording of the terms also appear to be directly targeted at Sling Media's SlingPlayer app, which relays broadcasts from a person's TV and also enables control of DVR functions."

Full article here.

Robb Topolski reports for Public Knowledge, "All of these changes probably have something to do with the recent $28,000 PR disaster covered at The iPhone Blog where a Chicago-based AT&T subscriber was charged international rates for viewing a football game over the service, generating a bill of $28,000. It should be noted that this was an error since the consumer was in Miami and not at sea, yet AT&T responds as if the billing was justified and now starts revising the TOS to prohibit the activity!"

Full article here.

Dong Ngo reports for CNET, "Personally, I have the unlimited data plan on my iPhone 3G, but I've almost never streamed anything via the 3G connection, mainly because it is just not possible most of the time in San Francisco. Nonetheless, I don't think 200MB a month or even 5GB a month are enough for a heavy streamer, considering a full-length high-quality movie uses up to 1GB of data."

Ngo reports, "It's important to note, however, that the changes only apply to cellular data plans. It seems you can still stream as much as you want via a Wi-Fi connection, provided your phone has this feature."

Full article here.


UPDATE: 8:42pm EDT: AT&T Wireless retracts terms of service changes, apologizes for error - April 03, 2009

[Thanks to MacDailyNews Readers "M." and "Sir Gill Bates" for the heads up.]

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Apr 03, 09 - 03:00 pm Comment from: mr_matalino

This is getting ridiculous...

Apr 03, 09 - 03:00 pm Comment from: this guy

uverse now coming to the iPhone? I think so.

Apr 03, 09 - 03:01 pm Comment from: Jay

The wording of this bothers me, but are there any good ways to stream video to the iPhone? In my experience the 3G connection isn't good enough for streaming live video.

Apr 03, 09 - 03:03 pm Comment from: Follower

Everyone who bought MLB At Bat is going to jail!

Apr 03, 09 - 03:06 pm Comment from: Quad core

I am no contract lawyer, but wouldn't a change on the TOS negate the original contract?

Apr 03, 09 - 03:06 pm Comment from: Gabriel

So they're preparing to allow tethering then.

Well, if you read between the lines, it sure sounds like AT&T are gearing up to allow some kind of tethering in the near future. So they're getting their TOS in order beforehand.

Apr 03, 09 - 03:10 pm Comment from: this is mostly...

This is mostly for huge data files, if it's like a company such CBS.com, espn.com, or something like that, that makes their videos, mobile streaming compatible, then they are probably safe.

Apr 03, 09 - 03:13 pm Comment from: SirROM

@Quad Core

I do believe this is correct. I recall reading something like it before the iPhone came out that Verizon had changed their terms of service and it left an opening for people to cancel their contract without paying an early termination fee, which is exactly what many did in preparation for the iPhone release.

To bad the iPhone only works on AT&T;because even if you cancel the contract, the iPhone will not be unlocked for other networks (here in the USA of course).

Apr 03, 09 - 03:14 pm Comment from: MarkyMark

So AT&T;finally grew a pair! They've been out of their minds to not crack down hard on this type of high-bandwidth activity earlier, which drastically stresses their already overwhelmed 3G network. The dirty little secret of 3G (and 4G) is that the U.S. carriers currently do not have REMOTELY enough (expensive) backhaul bandwidth in place on their thousands of towers to support heavy data usage, particular anything to do with video. A bunch of users streaming Slingbox off a tower can knock its throughput dead if they don't have heavy traffic-shaping implemented.

Apr 03, 09 - 03:20 pm Comment from: ron

Quad core, "I am no contract lawyer, but wouldn't a change on the TOS negate the original contract?"

I hear that Oboma's mob has changed all that.

Apr 03, 09 - 03:24 pm Comment from: Driver

Watch out U-Tube users. It looks like it could be violating the new TOS as well. As well as any other webpage that has video embeded.

Just a thought...

Apr 03, 09 - 03:25 pm Comment from: R2

Damn you STEVE JOBS and your EXCLUSIVITY AGREEMENT!!

RELEASE ME! RELEASE ME FROM THESE SHACKLES!!!

Apr 03, 09 - 03:42 pm Comment from: G4Dualie

@Ron

I hear that Oboma's mob has changed all that.

Link please.

Apr 03, 09 - 03:46 pm Comment from: Manny13z

What the F! I have long been an AT & T customer and proponent but this has really pissed me off. I can't wait for the 5 year exclusivity contract for Apple to expire. We are the great US of A and Asia is kicking our butts in technology, what’s up with that?

Apr 03, 09 - 03:49 pm Comment from: drbyers

suckers... (yes, that means ALL you AT&T;subscribers).

Apr 03, 09 - 03:51 pm Comment from: Sixvodkas

Once again, R2 makes an ass out of himself in a public forum.

Retard?

Apple approached other providers when pitching iPhone- Verizon included- but was declined until AT&T;agreed to carry the device.

Apple hardly wants to be restricted to a single provider (despite your delusions to the contrary), NO ONE ELSE wanted to chance the iPhone.

Do you ever tire of looking stupid?

(One has to wait until MDN's next story to find out!)

Apr 03, 09 - 04:04 pm Comment from: Jersey_Trader

My 2 year contract comes up in July. If AT&T;is not interested in using all the new features of the 3rd generation iPhone, I can get a phone without contract and work with another carrier. Or, get an iPod touch for video streaming. Lets see what the terms look like when the old contracts come to an end.

For all we know, GM may get their cars to work as mobil WiFi connections for the iPod touches to sell their cars!

Apr 03, 09 - 04:06 pm Comment from: mossman

If you don't like the (revised) terms of service, you can take your figurative ball and go play in some other company's sandbox.

Or at least that's what some of you were saying about iPhone developers and Apple's recent TOS changes.

Remember, those changes were for the good of the iPhone/iPod community too, just as this AT&T;change is for the good of the 3G-using community.

/sarcasm

Apr 03, 09 - 04:11 pm Comment from: sherman

All you defenders of ATT can be fine with the arrangement and get screwed by ATT's BS, but they better not market it as 'unlimited' data since it would be illegal to do that. If they do anyway I would be all for the consumer advocacy on this one!

Apr 03, 09 - 04:21 pm Comment from: ac

this is bull.

Apr 03, 09 - 04:23 pm Comment from: GizmoDan

Anyone want to break out of your contract, now is your chance. Could sell the old phone on eBay and then buy the new model in June.

Apr 03, 09 - 04:31 pm Comment from: Ixol Phaane

I smell a class action lawsuit if AT&T;follows through with this action. The iPhone has been marketed as a tool with access to the real internet via broadband service, and to prohibit such access seems on the face to be false advertising and a breach of contract, in my lay opinion.
It would be one thing to place data limits, but to deny certain actions would be another. If this is the only way AT&T;can manage their network traffic, then they have a bigger problem than is apparently obvious.

Apr 03, 09 - 04:32 pm Comment from: Zul Zorander

@G4Dualie

re:
@Ron

I hear that Oboma's mob has changed all that.

Link please.

The link, G4, is simple:

AP News, NBC, CBS, CNBC, CNN, NY Times, LA Times, Washington Post, USA Today, People, NewsWeek, Times... The slobbering love affair by the drive-by media on open display for ALL to see for all things Obama...

Apr 03, 09 - 04:38 pm Comment from: NE14Tennis

This applies to ALL ATT Wireless devices, not just the iPhone, the link for the new TOS is
http://www.wireless.att.com/cell-phone-service/legal/plan-terms.jsp

Apr 03, 09 - 04:38 pm Comment from: Darkness

Not at all. By changing the terms of service you now have an opportunity not to agree to the new terms and cancel your contract. I personally don't find these new terms onerous as I can still do all those things via wi-fi... which AT&T;so kindly provides for free at a bazillion U.S. Starbucks locations.

This is much ado about nothing. At least until AT&T;offers new tiers of service that include these new features. Pay for them if you want 'em.

Apr 03, 09 - 04:44 pm Comment from: Darkness

@Zul Zorander...

That's not a link, that's a straw man.

At the risk of sampling your smelly bait I'll just say that the media is obligated to cover the president when he's working for the country. It's just nice to see that they haven't forgotten how after 8 years of shuttling between Washington and Crawford, TX reporting on a series of spoonerisms and lies that took the country into unnecessary wars.

Apr 03, 09 - 04:47 pm Comment from: R2

"Apple hardly wants to be restricted to a single provider (despite your delusions to the contrary), NO ONE ELSE wanted to chance the iPhone."

The only other carrier that had a chance at the iPhone was Verizon Wireless (which goes to show who Steve thinks has the best network). We have no confirmation or rumor of another carrier who turned it down so your "NO ONE ELSE" hyperbole is unwelcome.

And if you don't plan to make it bust, then I suggest you get off my dick. Everytime you come at me you end up pwned.

Apr 03, 09 - 04:57 pm Comment from: jjjj

ATT's lack of quality keeps me from getting an iPhone. Simple as that. I'm happy to use the iPod touch on wi-fi.

Apr 03, 09 - 05:01 pm Comment from: Zul Zorander

@Darkness

@Zul Zorander...
That's not a link, that's a straw man.

At the risk of sampling your smelly bait I'll just say that the media is obligated to cover the president when he's working for the country. It's just nice to see that they haven't forgotten how after 8 years of shuttling between Washington and Crawford, TX reporting on a series of spoonerisms and lies that took the country into unnecessary wars.

Ah.. out comes the liberal line. Whenever confronted by fact, liberals pull out the anti-Bush rhetoric (come to think of it, so does the annointed one).

The MEDIA is charged with giving VOICE against POWER. It is (actually was) their job to expose, and keep government under their watchful eye. Not to have a slobbering love affair with Obama.

Talk about lies? How does "I'm the bipartisan president" sound. How about not allowing earmarks? How about going "line by line" through bills? How about allowing public review and comment on all bills (ie the Smash & Grab (aka Stimulus) bill wasn't even READ by ANY congressman that voted for it - ALL DEMOCRATS (including the 3 RHINOs). Did you know the true goal was to create a socialist paradise at the expense of YOUR kids and YOUR grandkids? Do you WANT 10 TRILLION dollar debts placed on your future generations? Really?

Straw man indeed. You cannot show me one, JUST ONE, article critical of ANYTHING that Obama has said or done. The "press" has sold their soul. They don't exist other then as a cheerleading squad for the messiah.

Apr 03, 09 - 05:26 pm Comment from: Artist

Ah Zul, your McCain/ Palin lost. Try again in 4 years.
Go away now smile

Apr 03, 09 - 05:27 pm Comment from: Darkness

@Zul Zorander...

From the "Communist News Network":
http://www.cnn.com/2009/POLITICS/03/17/obama.veterans/index.html?iref=newssearch

And now that I've proven that the media says critical things about the President will you please just shut up and go away? There's a bridge somewhere in the south missing its troll.

Apr 03, 09 - 05:52 pm Comment from: neomonkey

AT&T;is falling behind in their technology, so they have to choke traffic to fit what they have. They haven't announced any plans for 4G, while Sprint-Nextel already has it and Verizon is phasing it in this year.

Meanwhile, AT&T;heavily promotes the Blackberry and other "smart phones" that compete with the iPhone, which Apple can't be happy about.

Apr 03, 09 - 06:14 pm Comment from: Bizlaw

@ Quad Core & sirRON:

If AT&T;retained the power to make changes to the terms and conditions of its contract agreements, it can make such changes unilaterally. Depends on the contract. Credit card companies do it all the time.

On the other hand, the new TOS may only apply to new contracts and old agreements may not be affected.

One quick question: How many of you truly outraged people are remotely affected by this change? Just curious . . . .

Apr 03, 09 - 06:51 pm Comment from: Quad Core

"To bad the iPhone only works on AT&T;because even if you cancel the contract, the iPhone will not be unlocked for other networks (here in the USA of course)."

Not really, at last years county fair, T-Mobile had a booth, and he pulled out his unlocked phone using T-Mobile just to show me.

"If AT&T;retained the power to make changes to the terms and conditions of its contract agreements, it can make such changes unilaterally. Depends on the contract. Credit card companies do it all the time."

Even if AT&T;retained that right, customers have the right to decide whether they want to accept the new terms of service. In the case of a credit card company, they aren't usually changing the agreement, the new agreement is in the terms. For instance, it will usually say that the interest rate is 9%. If you fail to make payments, then your interest rate will go up to 18%.

That being said, usually companies like AT&T;will try to just slip it by you without really informing you of the changes.

Apr 03, 09 - 07:04 pm Comment from: Crabs

@Quad Core

It's true, you can unlock it for T-Mobile, but you'll only be able to operate on EDGE, because stupid T-Mobile had to be annoying and put their 3G on some random frequency that the iPhone doesn't support.

Also, with the credit card example, when my CC company changed their terms, they gave me a chance to opt out. I think that's what AT&T;has to do in this situation as well. I could be wrong, though.

Apr 03, 09 - 08:13 pm Comment from: An Optimist

It's time to face the truth, Apple: the power-that-be at AT&T;in San Antonio and Dallas are a bunch of scumbags. Randall Stephenson and Ed Whitacre are criminals who belong in prison for ass-raping the ratepayers.

The right direction to go now is with a 700 MHz wireless device, with open carriers. The rest of the telecom industry outside of Apple will support that move, especially Verizon, if their idiot CEO Ivan Seidenberg can learn to keep his mouth shut.

Apr 03, 09 - 08:40 pm Comment from: Bandit Bill

If you like the old contract who's to say you can't keep it in force and continue streaming video, tethering etc. ? Does AT&T;have the right to back out of the initial contract.

Apr 03, 09 - 09:54 pm Comment from: Zul Zorander

@Darkness
Re:
From the "Communist News Network":
http://www.cnn.com/2009/POLITICS/03/17/obama.veterans/index.html?iref=newssearch

And now that I've proven that the media says critical things about the President will you please just shut up and go away? There's a bridge somewhere in the south missing its troll.
*******
Ignoring your (typical) personal attack, ARE YOU SERIOUS? That is what you call a critical, hard hitting journalistic piece against an Obama policy? Oh... My... God....

Look, the coming storm (oppressive inflation, complete governmental control of energy, medical care, automobile industry, (and more), taxes you can believe in, subservience to government) is going to affect both me AND YOU. You can never say you haven't been warned.... I really would love to be there when the reality of what is being done TO you finally hits you...

Apr 04, 09 - 07:11 am Comment from: rattymouse

damn!!! Sixvodkas rippped R2 a new one!

Apr 05, 09 - 02:06 am Comment from: bobchr

I've bee using truphone over wifi for over a year now without incident. As far as AT&T;'s 3G network being inferior...in it's current implementation it is debateable, but industry pundits have noted that their implementation has more room to grow that Verizons or Sprint's 3G network. Sprint's 3G network I'd maxed out so they have no choice but to go to 4 G to stop from hemmoraging customers. Also if the Pre ever comes into being it would probably expose the weakness on their 3G implementation. I'm willing to bet that if the IPhone were to run on all 3 types of network AT&T;'s implementation would prove superior. AT&T;'s 3G network has a theoretical max download throughput of 14Mbps, the other 2 majors max out at 1/10 of that.

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