What is a Broadband Label? FCC Broadband Labels Explained

Imagine a world where understanding broadband services is as simple as reading the ingredients on the side of a cereal box. That's the idea behind Broadband Labels, a new tool designed to demystify the complexities of broadband plans. 

The Federal Communications Commission introduced these internet "nutrition labels" to help customers understand the costs and features of broadband services, making it easier to avoid hidden fees and surprises. By the end of 2024, all internet service providers (ISPs) must display these fact sheets alongside their plans.

Here's what you need to know about these new labels and how they can help you save money when picking your next broadband internet plan.

What Is a Broadband Label?

The FCC's broadband labels were intentionally made to resemble the FDA nutrition labels on your favorite snacks. Just as those food labels tell you the food's ingredients, broadband labels break down the key information about your internet plan. 

They'll show you costs, internet speeds, performance metrics, and data limits at a glance, making it easier to choose a broadband plan that fits your needs, whether it’s cable, satellite, fixed wireless, DSL, or another option like fiber optic high-speed internet.

What Information Is on Broadband Facts Labels?

Here's what you'll find on Broadband Consumer Labels:

• ‍Monthly Broadband Price and Contract Length: This section shows the plan's true cost, including any extras like modem rentals and taxes. Some providers offer an all-inclusive price that covers everything, including taxes and fees.
• Introductory Rates: This section details whether a plan's price will change after a specific duration of time and what the new price will be.
• Length of Contract: If a contract is required, the label will show the terms, provide a link to the contract, and show any early termination fees.
• Additional Charges and Terms: This section lists monthly fees (like modem rentals), one-time fees (like installation costs), and taxes. ISPs must itemize these fees.
• Speeds Provided with Plan: This section shows typical download and upload connectivity speeds, measured in megabits per second (Mbps). It also shows typical latency, which is the time it takes to send or receive data, measured in milliseconds.
• Data Included with Monthly Price: This shows the amount of data included before extra fees kick in or performance decreases, usually measured in gigabytes (GB) or terabytes (TB). Some providers may have an "Unlimited" option.
• Network Management and Privacy: Info on how the provider manages data on its network, including whether they block or throttle data, and how they handle your personal information. These two sections link the provider's network management and privacy policies.

How to Use Broadband Labels to Save Money on Your Internet Plan

Consumers should see the broadband nutrition labels from internet providers at any point of sale, including online and in stores. Here's how to make the most of the information and ensure you select the right choice for your specific needs:

1. ‍Compare Plans: Determine your budget, then look at labels from different ISPs to compare the costs, speeds, and data of their internet plans.
2. Double-check the Introductory Rate: Introductory rates are discounts given to customers for a certain period, usually a year, when signing up for a new plan. Be mindful of how long introductory pricing lasts and the standard rate once it ends.
3. Check for Fees: Look out for any extra fees or charges, like early termination or late fees. Knowing these will help you dodge unexpected costs.
4. Understand Upload and Download Speeds: The typical download and upload speeds listed on the labels will give you an idea of what to expect performance-wise from your plan. Higher numbers mean faster speeds. With typical latency, however, the lower the number, the better.
5. Review the Glossary: If you need further details, check out the FCC’s Glossary of Terms Used for the Consumer Broadband Labels.
   

What Is the FCC Broadband Labels Effective Date?

The official deadline for major internet service providers to implement these broadband labels was April 10, 2024. However, ISPs with fewer than 100,000 subscribers were given until October 10, 2024, to comply with the new rules. 

Soon, all providers will have these helpful labels, no matter their size.

What If a Provider Doesn't Display the Broadband Facts Labels?

If a broadband provider isn’t following the new rules—either by not displaying the labels or by posting misleading info about fees or service plans—you can take action. File a complaint with the FCC Consumer Complaint Center. 

Non-compliance by companies can lead to penalties or other regulatory actions.

What Led to the FCC Requiring the Broadband Nutrition Labels?

It started with the Bipartisan Infrastructure Law in 2021, which tasked the FCC with creating easy-to-understand broadband labels that explain a plan's price, speed, fees, and data allowances. This initiative is part of the Biden Administration's broader effort to cut out "junk fees" in various industries like banking, airlines, and hotels. 

FCC Chairwoman Jessica Rosenworcel says that the broadband "nutrition label" makes it "simpler for consumers to know what they are getting, hold providers to their promises, and benefit from greater competition — which means better service and prices for everyone."

The Bottom Line

The FCC's broadband labels provide clear, easy-to-understand information about costs, broadband speeds, data allowances, and fees. Comparing different labels can help you make informed decisions about your internet plan and is a big step toward transparency in the industry. 

Frequently Asked Questions

What do you need broadband for?

Broadband is high-speed internet that lets you access the web and online services. The speed you get depends on the type of service plan you choose, but it's a massive upgrade from the sluggish connections of the past.

What is an internet label?

Like a nutrition label on food, an internet label offers clear and straightforward details about the services you choose. The FCC requires all internet providers to present this broadband label in an easy-to-read format, making it simpler for customers to compare plans and understand what they're getting.

Is a router the same thing as broadband?

A router and broadband aren't the same thing. Broadband is the internet connection that comes into your home through a cable, while the router takes that connection and sends out a Wi-Fi signal, letting your devices access the internet wirelessly.