What Are Broadband Labels and Are They Useful?

To help consumers better understand broadband options, Congress has mandated that the Federal Communications Commission (FCC) revamp its concept of broadband labels, with the goal of providing more detailed info about competitive offerings from different providers. The idea is that providers use these templates to share information like the base monthly cost of broadband, activation fees, optional monthly charges, discounts, and other details regarding performance and reliability with consumers. According to Jon Peha, Professor of Engineering and Public Policy at Carnegie Mellon University, consumers want more information to make an informed choice. In a nutshell, consumers want more clarification regarding prices, existing broadband label proposals come across as confusing, and lastly, consumers want more information about performance and reliability. According to industry experts, the FCC will have to decide how to balance the needs of consumers and broadband providers. Consumers want as much information as possible, yet providers don't want to paint themselves into a corner by providing too much information. A couple of ways to address this, Peha said, is that the FCC could make information shared through the labels available to third parties or create layered labels with more information.