Biden calls for return of net neutrality, more competition among ISPs in executive order

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It is a basic economic principle that competition benefits consumers, and that principle is President Biden’s latest decree.

His 52nd Executive order Since taking office, President Biden has called for increased regulation and accountability of big business to improve competition in many sectors, from agriculture to transportation. Internet providers are included in the list due to the remaining broadband. Important focus On the president’s domestic agenda.

The four ordinances contained in the OEs are specifically related to broadband Internet and call on the Federal Communications Commission to take action to improve competition and transparency among all broadband providers. .. Let’s take a look at these commands and what they mean to consumers.

Prevent ISPs from dealing with owners

when Broadband benchmark updated by FCC from 4 Mbps to 25 MbpsIt has become clearer how limited the broadband options are for many Americans, not just those who live there. Local broadband gap.. The American digital divide has invaded the suburbs and the big cities. About 200 million people have only one or two viable broadband options. According to the FCC ..

Partnerships between owners and Internet service providers are a challenge when it comes to addressing and bridging the digital divide. Not only do they eliminate the choice of residents (often residents of low-income areas), but they also discourage competing providers from expanding their services to these monopoly areas. President Biden’s order, if enacted by the FCC, gives residents the right to expand Internet options while effectively encouraging competing providers to expand their services to new areas.

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Revitalize “broadband nutritional labeling”

Comparative purchases are often confused by the lack of transparent pricing, even when consumers have the luxury of two or more internet options. Excessive charges, whether hidden or not, can increase a customer’s bill by up to 40% from the advertised price. Additionally, vendors currently do not need to disclose standard prices, so Optimal You can keep your customers in the dark about what you’ll pay when the price goes up after 12 months. In other cases, as recent evidence Proceedings against the border, Customers just aren’t getting what they pay for.

The Presidential Executive Order addresses the lack of transparent pricing among broadband service providers by reviving “broadband nutrition labeling,” an effort started under the Obama administration but discontinued under President Trump. Intended to. If re-enacted by the FCC, this proposal requires broadband service providers to report prices and subscription rates to the FCC, as well as speed and availability data. With this additional information, the FCC can create a “simple label that provides basic information about the Internet services provided” so people can compare options.

Limit excessive early termination fees

High contractual requirements and early termination fees are common in the broadband market. Satellite provider HughesNet And Viasat Both are typical examples of this practice, as they both have a two-year contract and cancellation fees of up to $ 200 or more for early cancellation.

President Biden’s order encourages the FCC to limit excessive early termination fees, but does not directly state what should be considered “excessive.” Either way, restrictions on early termination fees give consumers more flexibility to switch ISPs or plans when and when they need to, rather than when contracts or impending termination fees allow. ..

Restore the rules of net neutrality

In 2017, The Trump administration has abolished net neutrality The protections put in place during the last administration allowed ISPs to slow Internet access at their sole discretion.

A large number of Republicans doubled their position Before the 2020 election, but Biden’s victory and after Jessica Rosenwessel appointed Interim President of FCC This can pave the way for a rapid restoration of net neutrality. In this executive order, President Biden specifically encourages the FCC to restore net neutrality. This again prohibits the ISP from intentionally blocking or slowing down the customer’s internet services.

Biden’s EO puts the ball in the FCC field

There are no clearly binding orders, but each puts a lot of pressure on the FCC, takes action, and increases accountability and transparency among ISPs. Regardless of when the FCC acts on one of President Biden’s proposals, the executive orders show consumers are struggling to find a viable and affordable Internet connection at home. .. The following has not yet been seen.

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