That is a traffic shaping (also known a throttling) script.
It appears to take 3 arguments. The interface, the receive limits and the transmit limits.
This first part just deletes everything:
tc qdisc del dev $1 root
tc qdisc del dev $1 ingress
tc qdisc del dev ifb0 root
As you can see the first parameter ($1) is the device interface, for example it could be the wifi interface. It also resets interface ifb0 which is an alternative to tc filters for handling ingress traffic, by redirecting it to a virtual (ifb0) interface and treat is as egress traffic there. The idea is that you can shape egress traffic but not ingress traffic, thereby if you can make all traffic egress then you can shape it.
This line creates a scheduler (qdisc) for the traffic on the interface supplied in paramter $1:
tc qdisc add dev $1 root handle 1: htb default 1 r2q 1000
here you define a class to which a rule is applied (in this case a rate of parameter $3, which is egress in kilobits):
tc class add dev $1 parent 1: classid 1:1 htb rate $3kbit
here you create another scheduler for the virtual interface and a class with a rule defining a rate of parameter $2, which is ingress, in kilobits:
tc qdisc add dev ifb0 root handle 1: htb default 1 r2q 1000
tc class add dev ifb0 parent 1: classid 1:1 htb rate $2kbit
Full info of components of Linux Traffic Control can be found here.
UPDATE: by the way, in a regular linux box you can see the status of the traffic shaping queues by using tc -s. For example you could try to issue the following commands in your phone and they should work too:
tc -s qdisc ls dev ifb0
tc -s class ls dev ifb0
That will display an abundance of information regarding the traffic shaping being performed.