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FCC to vote on 'broadband nutrition label' proposal

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FCC to vote on 'broadband nutrition label' proposal

In an effort to bolster competition and transparency in the U.S. broadband landscape, America's principle communications agency will soon begin work to make the cost of internet easier to understand for consumers.

At its Jan. 27 open meeting, the Federal Communications Commission will vote on a proposal requiring internet service providers to display labels that disclose information about prices, introductory rates, data allowances, speeds and other key information for consumers.

Sometimes called a "broadband nutrition label," the disclosures are modeled after the Food and Drug Administration's nutrition label for food products.

The move is the latest of several steps the independent agency is taking to make the broadband landscape more competitive and affordable. President Joe Biden's Infrastructure Investment and Jobs Act, which was signed into law in November 2021, directs the FCC to introduce regulations that increase price transparency for internet connectivity options.

"Shopping around for the best broadband plan can be a lot of work. The 'nutrition labels' on the FCC's agenda will help households compare prices and service offerings," said Democratic FCC commissioner Geoffrey Starks in an email to S&P Global Market Intelligence. "That better functioning marketplace will promote greater innovation, more competition, and lower prices for broadband — wins for all American consumers."

The proposal is not a final order. After the commission vote this week, the FCC will then seek comment on label placement procedures, implementation and rule enforcement. After, the commission can vote to issue an updated decisional document, known as a Report and Order, where the binding rules of the nutrition labels would be adopted.

The infrastructure act also directs the commission to conduct public hearings in order to assess how consumers work to evaluate the cost of broadband plans. In an August 2021 investigation into how agencies, analysts and interest groups calculate the average cost of broadband for Americans, sources told Market Intelligence that many dynamics make it hard for the FCC to meaningfully interpret any available pricing data.

"Not all consumers have always had two or more options in purchasing broadband. When they do, it has been very hard for them to make informed decisions because providers' offerings don't always make it easy to compare speed, data caps and prices," said Andy Schwartzman, senior counselor a the Benton Institute for Broadband & Society.

He added that details around introductory price promotions are sometimes buried in the fine print of purchase agreements, a matter that the commission would be able to address with its new label rules.

The commission will also take up other noteworthy items in its meeting, including an undisclosed national security matter, connecting Tribal libraries to the agency's e-rate program and an order to better optimize white space spectrum.

Government

Jan. 27 The Federal Communications Commission will hold its open commission meeting at 10:30 a.m.
Industry, legal and think tank events
Jan. 26 Techdirt will host a virtual event titled "Tech Policy Greenhouse: Remembering The SOPA Fight" featuring a discussion on the historic fight to defeat the Stop Online Piracy Act.
Jan. 26 The Mercatus Center at George Mason University will host a virtual forum that will discuss the state of antitrust enforcement policy during the first year of the Biden administration.
Jan. 26 The Open RAN Policy Coalition will hold a virtual discussion about the role of Open RAN Security in 5G, presented by the AT&T Policy Forum.
Jan. 27 The Information Technology & Innovation Foundation will host an event at 12 p.m. titled "Patchwork Penalty: The Hidden Toll of State Privacy Laws."
Jan. 27 The Federal Communications Bar Association will hold an event titled "CLE: Broadcast Ownership and Diversity: Current Rules and Perspectives on The Future."
Jan. 27 The R Street Institute will hold a virtual event at 2:30 p.m. titled "Data Privacy Day: A Path Forward for Federal Legislation" that will feature a discussion and debate on what a data security and data privacy law should contain and existing challenges to progress.


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