The Federal Communications Commission (FCC) has now mandated Internet service providers (ISPs) to display “nutrition labels” for their broadband plans.
What happened: The FCC’s nearly eight-year battle has come to an end. Starting today, all but the smallest ISPs will be required to publish these labels on all their plans. According to an FCC press release, the labels are designed to help consumers compare plans and avoid hidden costs.
These labels will be visible when purchasing detached homes, fixed internet plans or new mobile broadband plans. They will include monthly broadband prices, introductory tariff details, data amounts, broadband speeds and links to find out any discounts or service packages available. The labels will be available both online and in physical stores.
The new labels aim to reduce the practice of ISPs misrepresenting actual connection speeds. Major broadband providers have previously opposed the rule, arguing that such labels would be too expensive and complicated to implement.
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Verizon, Google FiberAND T-Mobile they have already released the labels before the deadline. The official FCC compliance deadline for major ISPs was April 10, while smaller ISPs have until October 10 to implement the labels.
Because matter: This new mandate comes at a difficult time for ISPs. A federal program that has been instrumental in providing free or deeply discounted high-speed internet to about 23 million American households will likely face substantial cuts in May.
This could have a significant impact on companies like AT&T Inc T, Verizon Communications VZAND Charter Communications CHTR.
Additionally, the FCC has faced criticism for its decisions regarding broadband subsidies. In December, SpaceX CEO Elon Musk criticized the FCC’s decision to deny SpaceX’s Starlink $885.5 million in rural broadband subsidies as “extremely unethical and politically partisan.”
Republican senators and representatives also accused the FCC of being “wasteful” in providing a $30 discount on broadband to the poor. The introduction of these “nutrition labels” could be seen as a step towards greater transparency in the sector.
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Benzinga NeuroBy
Kaustubh Bagalkote
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