Understanding the speed of broadband may be as easy as reading the nutrition label on the back of food purchased at a grocery store later this year.
The Federal Communications Commission unanimously voted Thursday, demanding that Internet providers such as Comcast and Verizon provide new labels disclosing data capacity, including price, speed, introduction fees and subsequent price increases for Internet plans. Promoted a new plan to do. It also includes network management techniques such as point-of-sale throttling. This will increase the transparency of market rates and may reduce prices in the future.
“Access to accurate and easy-to-understand information about broadband Internet access services is the center of a well-functioning market that helps consumers make informed choices,” the FCC said in a press release Thursday.
Last summer, President Biden signed a presidential directive to promote competition between markets, including telecommunications and Internet services. This order required the FCC to enact new rules aimed at providing Internet subscribers with more choices and better broadband Internet services. The agency acted on this order on Thursday and began the commenting process before the rules came into force by November 15.
“Nutrition labeling, which asks for comment today, helps households compare prices to the services they offer, making it easier to find the right package and the best deal,” Democrat Geoffrey Starks said in a statement Thursday. rice field. “Arming consumers with better information promotes greater innovation in broadband, more competition, and lower prices, and wins the entire broadband ecosystem.”
Broadband “nutrition labeling” is not a new idea. The label was first introduced in the last years of the Obama administration, but was unable to take off under Trump. For years, consumers have complained about sudden price increases and surprising rates, and these labels will force providers to be more transparent to these changes.
NCTA, an industry group of broadband providers, previously approved the concept of labels in 2016. In a statement this week, the organization said, “Cable operators are committed to providing consumers with relevant information about broadband services.”
