"AT&T is offering to discuss a settlement to an iPhone user who won a small-claims case that alleged the company was slowing down his "unlimited" data service," reports the Associated Press, adding, "A law firm retained by AT&T Inc. also threatened in a letter dated Friday to shut off Matthew Spaccarelli’s phone service if he doesn’t sit down to talk."

The article says "The phone company doesn’t say if the settlement would involve money beyond the $850 award the Simi Valley, Calif., resident won from the company in small claims court on Feb. 24. … Spaccarelli maintained at his Feb. 24 small-claims hearing that AT&T broke its promise to provide ‘unlimited’ service, and the judge agreed."

The story adds, "Spaccarelli has admitted that he has used his iPhone to provide Internet access for other devices, a practice known as tethering, which violates AT&T’s contract terms. AT&T says that means it has the right to turn off his service. Spaccarelli says he doesn’t care — the important thing to him was defeating AT&T in court, he said."

The story also notes: "Spaccarelli has posted online the documents he used to argue his case and encourages other AT&T customers to copy his suit. Legal settlements usually include non-disclosure agreements that would force Spaccarelli to take down the documents."

The article says that AT&T will appeal the decision of the small claims court.