Here’s how broadband providers might react to Biden’s effort to scrap ‘junk fees’

President Joe Biden called on Congress during his State of the Union address to pass legislation that would prevent operators from levying so-called “junk fees.” That’s unlikely to actually happen, but similar ideas could be adopted at the state level and operators will be left looking for new ways to pass on costs to consumers. The details of the Junk Fee Prevention Act have yet to be released. However, PricewaterhouseCoopers' Dan Hays said operators can expect “increased pressure” on all sorts of fees, whether they’re related to activation and installation, regulatory compliance, or technology investments. Early termination fees – which can cost customers hundreds of dollars when they cancel their service before the end of a contract period – appear to be a particular target. While they have a bad reputation among consumers, Hays said these charges aren’t a pointless money grab. Instead, they’re designed to help operators recoup “costly investments in upfront subscriber acquisition, equipment subsidies, installation and activation from subscribers who terminate service before such investments can be fully recovered.” If Congress or state lawmakers pass legislation banning these or other ISP fees, upfront costs for consumers are likely to go up, he added.