Broadband Labels for Small ISPs

The FCC recently issued a detailed Compliance Guide that describes the rules associated with the creation of broadband consumer labels. ISPs with more than 100,000 customers were required to publish a label by April 10, 2024. All other ISPs have until October 10, 2024.

The FCC implies in the guide introduction that it is serious about the labels and threatens fines for ISPs that don’t create labels or who create labels that don’t comply with the rules. While the labels seem simple, there is a lot of information that must be disclosed to the public, so ISPs should read the guidelines.

Here are a few of the key requirements – but there are others:

  • Use the FCC Format. You can’t customize the label and must follow the FCC format – which has been standardized to be the same everywhere.
  • Machine Readable. The labels must be machine-readable on a website – don’t post a picture of a label.
  • What Products are Covered? You need a separate label for each broadband product. There are no exclusions in the rules for small business broadband. A huge number of ISPs of all sizes don’t quote business rates on their website since they negotiate rates with customers. The new labels are going to force ISPs to somehow show business rates, and it won’t be easy for ISPs that charge unique rates to each business customer.
  • Where to Show the Label. On a website, the labels can be displayed upfront or can become available after a customer lists the service address. Labels have to also be made available on any alternative websites where you advertise your products. Labels must be made available for those with disabilities. If you advertise in multiple languages, there must be a label in each language. You have to make labels easily available at retail outlets or other places where customers can buy your broadband.
  • Service Plans. You may identify plans by speed or by brand name.
  • Prices. At a minimum, you must show the unbundled standalone rate for each service offering. This must be the retail price before any promotions or discounts are applied to the product. You are allowed to separately describe the discounts that are available. This would include any bundling discounts.
  • Fees. You must disclose all fees associated with the product. This includes any installation fees. It would include all fees that are billed monthly in addition to the base price. This would include fees for a modem, gateway, or router. Fees like deposits or fees for late payment must be disclosed. Any fees for cancelling the contract must be disclosed.
  • Introductory Rates. If you offer introductory rates, you must disclose the discounted price, the length of a discount period, and the rates after the introductory rate expires. You can provide a link to a webpage that describes the special rates.
  • Contracts. You must disclose if a contract is required to get the listed price. There should be a link to see the contract terms that would apply.
  • Taxes. You must disclose if there are taxes on the product, although you don’t have to disclose the exact amount. You should disclose if taxes are rolled into your quoted prices.
  • Speeds and Latency. ISPs must disclose their ‘typical’ download and upload speed and latency for each product. If ISPs participate in the Measuring Broadband America (MBA) program, you should disclose the speeds determined in that process. If you don’t, you should disclose speeds based on actual internal testing. This is a stern warning to ISPs that advertise 100/20 Mbps but deliver 20/5 Mbps to disclose a number closer to your actual speeds. The same rules apply when reporting latency.
  • Network Management Practices. These don’t go on the label, but there must be a link near to the labels that directs the public to a description of network practices. Current transparency rules specifically require disclosing practices associated with blocking, throttling, and paid prioritization. I highly recommend describing the technology you are using in plain English without hyperbole.
  • Privacy Policy. ISPs must also provide a link that discloses the privacy policies for dealing with customer data.
  • FCC Glossary. You must include a link to the FCC webpage that includes a glossary of broadband terms and other informational materials.
  • Archive. You must keep labels on file for at least two years for any products that you no longer offer. This basically means keeping all versions any time you make changes. This also implies that your labels must be up to date for all information provided.

If your broadband products are superior to those offered by competitors, you should post the labels now and not wait until October.

I think the labels are a great marketing tool for ISPs that sell good broadband at a good price. The labels have to be a major concern for ISPs that deliver broadband products that are much slower than what they advertise. Expect that customers will complain to the FCC if you advertise a speed or price on the labels but deliver something different.

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