It’s just throttling.  The EFF ran some tests:
https://www.eff.org/deeplinks/2016/01/eff-confirms-t-mobiles-bingeon-optimization-just-throttling-applies

It works by essentially tricking devices into requesting lower-bitrate streams. 
 This is not a sure thing to work; any video that is not streamed using a 
streaming protocol that does adaptive rate adjustment simply won’t produce the 
desired result.  Happily, it looks like you can opt out if you wish, although 
of course you then lose the “Free” allowance.

Of course the colourful T-Mobile CEO has some harsh words for people with an 
annoying habit of telling the truth:
http://www.theverge.com/2016/1/7/10733298/john-legere-binge-on-lie

It sounds like a net neutrality disaster just waiting to happen.  But then 
again, I’d probably pick T-Mobile if I were over there.  They do seem to be the 
least screwy of the lot, even if the CEO is a bit of a dick. :)

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