Eshoo bill would give consumers more info about 4G wireless plans

By Gautham Nagesh - 06/22/11 11:55 AM ET

Rep. Anna Eshoo (D-Calif.) introduced a bill Wednesday that would give consumers details on the minimum speed and reliability of 4G wireless networks when they sign up for a new data plan.

The Next Generation Wireless Disclosure Act would provide consumers with information on guaranteed minumum data speed, network reliability, coverage areas, pricing and network conditions at the point of sale and in all billing materials.

The legislation would also task the Federal Communications Commission with evaluating the speed and price of the 4G data service provided by the top 10 U.S. wireless carriers so customers have access to side-by-side comparison in their service area.

“Consumers deserve to know exactly what they’re getting for their money when they sign-up for a 4G data plan,” Eshoo said.

“But consumers need to know the truth about the speeds they’re actually getting. My legislation is simple — it will establish guidelines for understanding what 4G speed really is, and ensure that consumers have all the information they need to make an informed decision.”

With a district that encompasses Silicon Valley, the ranking Democrat on the Telecom subpanel is an established voice on tech and telecom policy issues. The bill's supporters include the Consumers Union, the Media Access Project and the New America Foundation.

"Right now, there aren’t a lot of consumer protections for mobile broadband customers, and the Eshoo bill would help ensure consumers have certain rights and information when they sign up for a plan," said Consumers Union policy counsel Parul Desai.

“This bill might not have been necessary if there were enough competition in the wireless market, but there isn’t,” said Andrew Schwartzman, senior vice president and policy director for Media Access Project.

However, a group representing the wireless industry was less enthusiastic, arguing the new rules would oversimplify a complex issue.

“We are concerned that the bill proposes to add a new layer of regulation to a new and exciting set of services, while ignoring the fact that wireless is an inherently complex and dynamic environment in which network speeds can vary depending on a wide variety of factors," said CTIA—The Wireless Association vice president of government affairs Jot Carpenter.

"Congress should resist calls to impose new regulations and instead focus on the real issue, which is making sure that America’s wireless carriers have sufficient spectrum to lead the world in the race to deploy 4G services.”