At an imaginary press conference X years into the future:
"Ladies and gentlemen, the chairman of the FCC."
"I know you have all been waiting to hear the details of our newest regulations and I appreciate your patience as we ironed out the final details. I'm going to give a quick run down of the major changes that will be occurring and an overview of what the intentions behind and effects of each new change. A full copy of the regulations will be provided to you as well as being made available to the general public through our website.
The first major change is that we will be creating an official speed rating for all wireless and wireline carriers. Instead of measuring the theoretical maximum transmission speed under ideal conditions, as is the current industry standard, the speed for each network will instead be determined by averaging the connection speed for a cross section of customers in a given market during 'peak time', at the modem or end user cellular device. We are considering 5pm to 10pm local time to be peak time for each market.
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Yes?
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No. The FCC does not have the authority to enforce advertising standards. The hope behind this regulation is to create more transparency in actual speeds the average consumer can expect to receive from each wireless carrier or ISP. This would open up companies who have large gaps between their actual speed and their advertised speed to false advertising lawsuits. We will provide a preliminary measurement to each company 30 days prior to the official measurement to allow lead time to either change advertising or perform necessary network maintenance to bring the speed up to match advertising.
Our second major change is that no premium charging for data will be allowed. In other words, neither wireless carriers, nor ISPs will be able to charge an 'overage fee' for customers passing a certain usage threshold in excess of what that data costs as part of the currently purchased plan. If you are paying $80 for 10GB of data, then an additional GB beyond that may not cost more than $8. Additionally, the unit used to increment the monthly charges may not exceed 10% of total monthly allotment under the current plan, which means if you have a 10GB plan, the company cannot increase the total you are billed more than 1GB at a time.
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Yes, companies are still allowed to terminate customers for 'excessive network impact', but we will require that this term be precisely defined, and that a customer must be informed of the definition of 'excessive network impact' prior to when they are required to adhere to it. A company also cannot change the timespan over which a customer is measured until the end of the span under the current definition is reached. To simplify, in order to terminate your service for using more than 250GB in a bill cycle, they have to tell you that's a possibility before the bill cycle starts, and if they decide the new definition will be 10GB in 24 hours halfway through your bill cycle, you cannot be held to that standard until the end of your current cycle.
They also cannot make the standard for 'excessive network impact' below their maximum available plan. This means that if they offer a 100GB per month plan, they cannot terminate a customer if they do not exceed that for a given period. They can divide that total down to whatever unit of time they like, so they may use the definition of 3.33GB per day in this case, but whatever limit, timeframe, and standard of measurement they choose must be the same for all customers, regardless of plan.
The last regulatory change is that companies engaging in business in multiple markets are no longer allowed to vary pricing from market to market without demonstratable proof of higher network maintenance and/or operations cost. There is a provision in this regulation to require 'apples to apples' comparison of pricing as well. What this boils down to is that if company 'C' charges $20 a month for the 6Mb speed tier in a market where their maximum available speed is 100Mb and they have 3 competitors, in a rural market where they are the only provider and they offer 6Mb as the maximum speed, they must prove that it costs more to operate or maintain the network there in order to charge more than $20 a month and the increase cannot be more than the additional proven cost. We intend to be very strict in reviewing the submissions of extra costs. This will not apply to non-recurring charges only.
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We have considered that and we do have provisions under what constitutes 'maintenance and operations costs' for network improvement and build out. The way we will determine how much of that cost can be applied to the specific market it is occurring in and how much must be applied to the whole customer base is complex and would be more detail than we intend to go into during this press conference although it will be available in the full brief provided to you. The major points are that the improvement and/or build out must generally demonstrate that it is in excess of what is required or being implemented in other markets, and it must have set, objectively measurable goals that are met in a reasonable timeframe. Simply put, they can't only increase pricing in a rural, monopolized market to allow them to rollout fiber optics there if they are doing the same thing in several other markets where the price is NOT being raised, and they can't raise the price in a single market to roll out fiber optics if most of their customer base will not receive it for a decade or more.
That is unfortunately all the time we have today. Please direct any further questions to our correspondence office, and refer to the full policy brief, thank you."





