T-Mobile's G1 "Unlimited" Data Plan Throttled After 1 GB of Data Usage

Today was the introduction of the T-Mobile G1, the first Google Android cell phone. The launch event didn't include details on the service plans, but closer examination of the plans after they were posted to T-Mobile's site reveals some worrisome details.

First of all, T-Mobile's 3G network is the smallest among U.S. carriers. T-Mobile insists that they'll have HSDPA up and running in twenty one markets by mid-October when the phone hits stores --- and twenty seven markets by year's end. Many of T-Mobile's customers will be relegated to EDGE anyway.

But then, here's the kicker: the fine print at the bottom of T-Mobile's 3G detail page (emphasis T-Mobile's):

If your total data usage in any billing cycle is more than 1GB, your data throughput for the remainder of that cycle may be reduced to 50 kbps or less. Your data session, plan, or service may be suspended, terminated, or restricted for significant roaming or if you use your service in a way that interferes with our network or ability to provide quality service to other users. Some devices require specific data plans; if you do not have the right plan for your device, you may not be able to use data services. Some downloads, such as movies, music, and games, not included. Domestic use only.

One thing's for sure: you're not going to be using the G1 for tethering purposes.

Some will say, big deal, 1 GB is a lot of data. Well, in reality, nowadays, it's not. And the way they advertise their service plans is somewhat misleading:

You can choose from a data plan that offers 400 messages and unlimited data access for $25 a month—or add unlimited messaging for just $10 more a month.

While we all know that cell phone data plans aren't really unlimited, this is the first time I've heard of throttling like this, and after only 1 GB of usage. Comcast, meet T-Mobile.

I expect users to buy the phone anyway, but I also expect to see some fallout.