It’s a basic economic principle that competition benefits the consumer, and it’s that principle that serves as the foundation to President Biden’s latest executive order.
In his 52ndsince taking office, President Biden calls for increased regulation and accountability of major corporations to improve competition in a number of industries ranging from agriculture to transportation. The list includes internet providers, as broadband remains in the president’s domestic agenda.
Four of the orders included in the EO relate specifically to broadband internet and call on the Federal Communications Commission to enact a number of measures to improve competition and transparency among all broadband providers. Here’s a look at those orders and what they could mean for consumers:
Prevent ISPs from making deals with landlords
When the according to the FCC., it became more apparent how limited broadband options are for many Americans, and not just for those living in . America’s digital divide permeates the suburbs and even major cities as some 200 million people only have one or two viable broadband options,
Partnerships between landlords and internet providers are a challenge when it comes to addressing and mitigating the digital divide. Not only do they eliminate options for residents — often residents of low-income neighborhoods — they also discourage competing providers from extending service to these monopolized areas. President Biden’s order, if enacted by the FCC, would give residents the right to more internet options while effectively encouraging competing providers to extend service to new areas.
Revive the ‘Broadband Nutrition Label’
Even when consumers have the luxury of two or more internet options, comparison shopping is often muddled by the lack of transparent pricing. Excessive fees, hidden or otherwise, can inflate a customer’s bill by as much as 40% compared to the advertised price. Furthermore, providers are currently not required to disclose standard pricing, so providers likecan keep customers in the dark as to what they’ll be paying when their rates go up after 12 months. In other cases, as evidenced in a recent , customers simply aren’t getting what they pay for.
The president’s order aims to address the lack of transparent pricing among broadband providers by reviving the “Broadband Nutrition Label,” an effort initiated during the Obama administration but halted under President Trump. If re-enacted by the FCC, the proposal would require broadband providers to report their prices and subscription rates to the FCC along with speed and availability data. With this added information, the FCC can create a “simple label that provides basic information about the internet service offered so people can compare options.”
Limit excessive early termination fees
Contract requirements and steep early termination fees are common on the broadband market. Satellite providersand are prime examples of this practice as both come with two-year contracts and termination fees up to $200 or more for anyone who cancels early.
President Biden’s order encourages the FCC to limit excessive early termination fees, but doesn’t directly state what should be considered “excessive.” Either way, limitations on early termination fees will give consumers more flexibility to change their internet provider or plan when they need or want to, not when a contract and a looming termination fee allow for it.
Restore Net Neutrality rules
In 2017, theprotections enacted during the previous administration, which once again allowed ISPs to slow internet access at their discretion.
Much of theprior to the 2020 election, but Biden’s win and subsequent could pave the way for a swift reinstatement of Net Neutrality. In this executive order, President Biden specifically encourages the FCC to restore Net Neutrality, which would once again prohibit ISPs from intentionally blocking or slowing a customer’s internet service.
Biden’s EO puts the ball in FCC’s court
While no order is specifically binding, each one does place significant pressure on the FCC to take action and increase accountability and transparency among ISPs. Regardless of when or if the FCC will act on any of President Biden’s proposals, the executive order gives consumers struggling to find a workable, reasonably priced internet connection at home a glimmer of hope that changes could be in the works — but whether regulatory action follows remains to be seen.