Broadband Pricing to be Clearer, using 'Labels'

The Federal Communications Commission (FCC) has unveiled a standardized way for broadband providers to give details on pricing and other contract terms. The "consumer broadband labels" resemble, and are based on, the nutritional information labels seen on packaged food.

The labels were developed with the input of both broadband providers and consumer groups. Although providers won't legally be required to use the labels, it is very much in their interests to do so.

Companies which do use the labels will, assuming they have been honest and accurate with the information, automatically be considered to have met existing rules that require them to provide clear pricing. (Source: fcc.gov)

Monthly & One-Off Costs Listed

The idea of the labels is partly so that customers know what to expect from a particular provider if they sign up to a deal and partly to allow easier and fairer comparison between different providers - at least for those fortunate enough to live in areas which have broadband competition.

The first section of the label covers the monthly cost of service, including any data caps, along with details of what happens if the user exceeds a data cap.

The second section of the label lists any costs from the supplier that apply regardless of the particular plan. This includes two possible monthly fees (administrative and regulatory) and three possible one-off charges, including: activation, deposit and early termination of contract.

Label Details 'Typical' Internet Speeds

The third section of the label covers the "typical" upload and download speeds customer should expect for each plan. The label also details network latency, which implies typical response time to make a remote connection, and packet loss - which is a percentage of data that doesn't get through at all. In both cases, network latency and packet loss are important factors for services such as video calls and online gaming.

There's no guarantee customers will actually get these speeds. However, having these figures on hand may make it easier to complain, ask for a rebate, or request a penalty-free cancellation if the actual performance falls far short of the listed figures.

The final section of the label says whether or not the company carries out two types of "network management" (sometimes called "throttling"), which means slowing down Internet access. The first is "application specific," meaning that a particular type of Internet activity such as using file sharing services, is slowed down. The second is "subscriber triggered" meaning, for example, that the provider slows down a customer's access if they use a large amount of data in a short period. (Source: thenextweb.com)

What's Your Opinion?

Is the FCC right to develop and push these labels? Should such standardized labels be mandatory for all providers? Is there any information not on the label that you think should be included?