Yes it is true and there is nothing that you can do to get around it. My university is doing the same stupid thing (probably not because they want to "follow the law" but because they want to save bandwidth) and the internet is still slow. The colleges and universities around the country are falling in bed with the RIAA for fear that they will be pursued in court for helping students download illegally.

Hope this helps.

BTW: What University are you at?