The Federal Communications Commission (FCC) announced its deadline for providers to start displaying consumer labels, which have been likened to ‘nutrition labels’ for broadband service.
Following review by the Office of Management and Budget (OMB), the FCC announced most providers will need to be in compliance with label requirements starting April 10, 2024. Those with 100,000 or fewer subscriber lines have a bit longer, until October 10, 2024.
The new label requirements were approved in November of last year to create easy-to-understand labels so that consumers have a way to make more informed decisions on their options for broadband services. Starting next year ISPs will have to display point-of-sale labels containing information including pricing, data allowances, performance metrics and whether the provider participates in the Commission’s Affordable Connectivity Program (ACP).
Broadband providers will be asked to prominently display their labels online and create accessible portals on personal accounts. These measures also require that broadband providers optimize their public-facing label data to ensure that third-party websites can easily collect data to compare plans for consumers.
The change in requirements “will be rather impactful,” said Louis Peraertz, VP of policy for the Wireless Internet Service Providers Association (WISPA), as each provider will need to spend time and money to prepare the labels.
When first announced, WISPA welcomed the FCC’s framework for instituting the labels, as it could help smaller companies compete better in the broadband market.
“WISPA’s members have a year to comply, so our focus will be on educating members and encouraging them to meet the requirements,” Peraertz told Fierce Telecom.
The label initiative was first launched by the FCC in 2015 as part of the Open Internet Order, but subsequently died when that measure was repealed late 2017.
This time, the Commission adopted the Broadband Label Order as part of the Infrastructure Investment and Jobs Act. FCC Chairwoman Jessica Rosenworcel has compared the proposed labels to nutrition labels printed on grocery items, which she said help “consumers make good choices.”
However, the rule has received some pushback from industry groups and providers. In August of this year the FCC addressed three petitions requesting that the Commission clarify or reconsider certain label requirements, including a label’s format and display location.
In its filing the FCC said it “largely rejects petitions to reconsider the rules and preserves consumer access to clear and accurate information about broadband services.”
For example, providers will have to make their labels in a "machine-readable format” despite protests from some petitioners.
The Commission rejected one industry group's request that providers can state on the label that additional fees may apply, and that these fees may vary depending on location. It also declined a second petition from a coalition of companies requesting the labels not disclose all monthly fees or that they instead display an “up to” price for certain fees.