The Straight Talk spokesperson emphasized that the vast majority of users do not experience throttling.
A number of users have reported being throttled to speeds of about 128 Kbps after using more than approximately 100 MB of data in a day or 2 GB in a plan month. Some received warning calls before being throttled but many say they did not.
The Straight Talk representative also confirmed that the personal hotspot feature is disabled on the iPhones that Straight Talk sells. That's no surprise as Straight Talk's Android phones always shipped with Android's built in Wi-Fi hotspot feature disabled.
It's good to see Straight Talk come clean on tethering even if only partially. Still I'd like them to follow the example of Sprint's Boost and Virgin Mobile brands and explicitly state both the throttle point and throttled speed.
Update: PCMag.com's Sascha Segan has also been covering the hidden limits with Straight Talk's "Unlimited" service.
Ignore the link-bait title, it's not a crime to violate a company's TOS, and read Sascha's post, How Straight Talk's TOS Makes Most iPhone Users Criminals. In it, he lays bare how illogical and restrictive Straight Talk's terms are.
The post even got a rare response from the normally reclusive Straight Talk management, Straight Talk Responds to 'Unlimited' Complaints. In it Straight Talk claimed;
"...there is no prohibition against downloading movies, watching live TV or other live video"Of course, as Sascha, points out, that contradicts the company's own terms of service. Straight Talk's response also confirmed that the decision to throttle or terminate a user's service is made on a case by case basis;
"...we do not have fixed thresholds for throttling or deactivation like some of the other carriers. Rather, we are continuously monitoring our customers’ usage and will adjust thresholds as necessary in order to maximize all of our customers' experience."While that makes sense from a network management perspective, it leaves the poor user completely in the dark as to whether their usage is acceptable or subject to being throttled or cut off at any moment.
Sources: FierceWireless via PhoneNews, PCMag