Today, Rep. Anna G. Eshoo (D-CA) introduced the Next Generation Wireless Disclosure Act. This legislation works to help give consumers complete and accurate information about the speed of 4G service before committing to a service provider. The bill also helps consumers understand network reliability, coverage and pricing.

"I commend Congresswoman Eshoo for introducing legislation that gives consumers more clear and concise information about the mobile broadband services they are buying," stated Sascha Meinrath, Director of the New America Foundation's Open Technology Initiative. "Today, more than ever, mobile broadband providers employ Orwellian doublespeak advertising that tout 'unlimited plans' that are in fact not unlimited and market '4g' speeds in terms of 'lightning fast' and 'supercharged.’ Transparency rules that provide consumers with basic information regarding the actual price, minimum speed, and plain language terms of service are desperately needed."

Benjamin Lennett, Senior Policy Analyst for the Open Technology Initiative, added: “The disclosure of a 'guaranteed minimum' or a baseline download or upload speeds would be a tremendous step forward in a market where broadband providers, both wired and wireless, continue to over promise and under deliver in terms of actual broadband speeds. Currently, there is no incentive for providers to be more accurate in their marketing of broadband speeds -- consumers only point of comparison are inflated and unreliable "up to" speeds."

The Open Technology Initiative, along with other public interest and consumer groups, has urged the Federal Communication Commission for years to enact strong rules to require all broadband providers to disclose accurate information to consumers. To help fill the void of information, OTI developed a sample 'broadband nutrition label' that if enacted would allow consumers to more easily compare broadband service across different plans and providers.
 
OTI lauds the Next Generation Wireless Disclosure Act, which fills a vacuum left by the FCC. The FCC, despite the groundswell of calls for transparency rules, has yet to move forward with actions to protect consumers.

"The Genachowski FCC has failed to act in a timely manner to enact even basic consumer protections -- hopefully Congresswoman Eshoo's legislation will help spur key decision-makers to action," added Meinrath.

For More Information On:
'4G' Hype and the Need for Transparency Rules for Mobile Broadband
http://oti.newamerica.net/blogposts/2011/4g_hype_and_need_for_transparency_rules_for_mobile_broadband-53506

Broadband Truth-in-Labeling
http://www.newamerica.net/publications/policy/broadband_truth_in_labeling