
How ISPs Can Leverage the FCC’s New Broadband Regulations to Improve Billing Transparency

Is that non-fat frozen yogurt really non-fat? “Seinfeld” fans may remember the classic episode when Jerry and Elaine, who were gaining weight, wondered if the frozen yogurt at the neighborhood shop was fat free, as advertised. Nutrition information displayed at the store would have cleared up the mystery—and Jerry’s confusion about gaining weight from eating the “fat free" treat that wasn’t.
Similarly, many telecommunications customers are often surprised and confused when they receive their first mysterious internet bill. Wait a minute! Why am I being charged $109 when I signed up for a $45-per-month plan?
Fortunately, the Federal Communications Commission (FCC) recently stepped in to eliminate those stressful surprises. Under new rules, internet service providers (ISPs)hat provide fixed and mobile (wireless) broadband services must display broadband labels for every plan at the point of sale, online and in stores. Modeled after Food and Drug Administration (FDA) nutrition labels, broadband labels include pertinent information (such as total cost and speeds) that consumers need to comparison shop for the internet service plan that best meets their needs and budget.
In addition to displaying broadband labels, ISPs can redesign their billing statements and provide a digital bill explanation tool to increase price transparency, improving the customer experience (CX).
Why Does Price Transparency Matter?
The billing experience is a critical determinant of CX and loyalty in an industry where the billing statement is often the only contact customers have with their service provider (unless there’s a problem). ISPs have plenty of room for improvement in customer satisfaction. In 2023, internet service providers ranked 41st out of 42 industries in customer satisfaction, scoring a low 68 out of 100.
Hidden fees and unexpected price increases have plagued customers for years, jeopardizing trust and loyalty. According to Forrester Research, transparency is one of several components (along with integrity and competence)hat customers use to assess a company’s trustworthiness.
Lack of transparency creates bill confusion that may increase contact center call volume. When customers don’t understand their bill, they reach for their phone. CSG research indicated that billing-related calls account for up to 50% of annual call volume, and bill confusion is a top reason for those calls.
Consumer-Friendly Broadband Labels: FCC Requirements and Implementation
The Infrastructure Investment and Jobs Act directed the FCC to require internet service providers to display consumer-friendly broadband labels with clear, accurate, easy-to-understand information about the cost and performance of high-speed internet services. Effective April 10, 2024, most ISPs must display broadband labels to their customers. Internet providers with fewer than 100,000 subscribers have until October 10, 2024, to comply with the FCC rules.
