FCC Should Track the Application of Fixed Internet Usage-Based Pricing and Help Improve Consumer Education

The Government Accountability Office was asked to review the use of usage-based pricing (UBP) by Internet providers. This report examines: 1) information available about the application of UBP by Internet service providers; 2) issues related to UBP selected consumers report are important to them; and 3) the potential effects of UBP on consumers.

While the Federal Communications Commission is collecting data regarding fixed UBP, it is not using this data to track UBP use because it only recently started collecting the data specifically to analyze prices. As a result, although FCC is charged with promoting the public interest, it may not know if UBP is being used in a way that is contrary to the public interest and, if so, take appropriate actions.

GAO recommends FCC: (1) work with fixed providers to develop a voluntary code of conduct to improve consumer communication and (2) make use of existing data to track fixed Internet UBP and its effects on consumers nationwide. FCC said it will monitor complaints and provider plans to determine if a more proactive approach is needed. GAO continues to believe that better communication is warranted. FCC agreed to use existing data to analyze UBP issues.