German Tribune

US network provider AT&T has clarified the limitations of its "unlimited" data plans, saying after using a certain amount of data customers would experience throttled Internet service.

AT&T confirmed that anyone who gobbles up more than 3GB of Internet data in a single cycle would experience slowed down Internet speeds or would have to pay extra.

The country's second-largest wireless carrier announced the new policy apparently to target customers who consume a lot of Internet data, usually through heavy viewing of videos and other content on their mobile phones.

According to the Wall Street Journal (WSJ)’s late Monday report, with AT&T’s proposed $39 billion acquisition of T-Mobile having fallen through, the two companies have recently filed for the US Federal Communications Commission (FCC)’s approval for the transfer of $1 billion in wireless airwaves from AT&T to T-Mobile.

After lobbying intensely for months for its proposed $39billion takeover of its smaller US rival T-Mobile, AT&T announced on Monday that it has decided to scrap the T-Mobile merger deal because it was unsuccessful in overcoming stiff competition from the government.

The scrapping of the deal means that, in accordance with the terms of the March-announced merger, AT&T will pay T-Mobile's parent Deutsche Telekom $4 billion in cash and wireless spectrum access as a break-up charge.