Edgar Cervantes/Android Authority
long story short
- The FCC has mandated the use of a new broadband “nutrition label” by all cable and wireless Internet service providers (ISPs).
- These labels must clearly break down program costs, speeds and hidden fees, similar to ingredient lists on food.
- Since today is the rollout deadline, we see them appearing on carrier websites.
Starting today, T-Mobile and other U.S. internet service providers (ISPs) have begun displaying Broadband Facts labels in compliance with new federal regulations. These “nutrition labels” are intended to give consumers a clear understanding of what they are paying for when they sign up for broadband services, including wireline and wireless services.
According to the FCC, the move is intended to eliminate surprises on monthly bills. President Biden emphasized this in a recent statement as part of an effort to combat “junk fees.”
While these labels won’t completely eliminate hidden fees, they make it more difficult to hide them. The FCC requires disclosure of “material information regarding broadband prices, introductory rates, data allowances and broadband speeds.” Additionally, links to network management and privacy policies are required.
For consumers, tags represent a gold mine of valuable data. Consumers can now more easily compare plans from different providers, accounting for all costs and potential performance limitations up front. T-Mobile’s label, for example, reveals the small difference in potential speeds between its non-priority and priority data plans.
Like T-Mobile, Verizon and Google Fi also have these broadband labels on their websites. These FCC-regulated labels are specifically designed to resemble nutrition labels on food packaging, as shown in the example above.
The labels stem from the Infrastructure Investment and Jobs Act of 2021 (IIJA), a $1.2 trillion package that contains provisions for multiple sectors, including broadband infrastructure. The bill requires the FCC to create labels so consumers can make informed choices when choosing a broadband plan.
Large ISPs with more than 100,000 users have until April 10, 2024 to implement these labels. Smaller ISPs have more time and need to be fully compliant by October 2024. The FCC has not yet announced specific penalties for noncompliance.