The mobile carriers are rolling out their fourth generation (4G) wireless plans with a standard promise that they are faster and more dependable than ever. But how can consumers tell what they're really getting when they subscribe to a 4G package? A new law proposed by Anna Eshoo (D-CA) would address that uncertainty.

"Consumers need to know the truth about the speeds they're actually getting," Eshoo's announcement explains. "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."

Six guarantees

Eshoo's "Next Generation Wireless Disclosure Act" would require sellers of "advanced mobile broadband service directly to a consumer" to disclose the following details about their plans:

First, "the guaranteed minimum transmit and receive data rates for Internet protocol packets to and from on-network hosts for the service, expressed in megabits per second." This minimum data rate would not be defined as "guaranteed," unless is it was determined to be available "for a percentage of the time in a calendar month."

Who would make this determination? The Federal Communications Commission.

Second, the "reliability rating" of the service. The Commission would set up a standard method for the rating. It would be based on "data session start success percentage (network accessibility)" and the "data session completion success percentage (network retainability)" of the plan.

Third, in the case of services that are priced by data volume—the price of the plan "based on the volume of data sent or received." And in the case of flat rate plans—the flat rate, and "a detailed description of any limits on the use of such service over such time period, by volume of data sent or received or otherwise."

Fourth, "any business practices or technical mechanisms employed by the service provider, other than standard best-effort delivery, that allocate capacity or prioritize traffic differently on the basis of the source of the applications, content, or services." This would include "any limits or prohibition" on the use of various applications or services, and any "traffic shaping or throttling mechanisms that affect the service as a result of exceeding certain usage limits."

This fourth provision would appear to duplicate the FCC's net neutrality rules, which require transparency of wireless carriers. But since the agency hasn't formally released them yet (and it's unclear when it will), Eshoo's bill would at least put that provision into Federal law.

The legislation would also require details about what kind of 4G the consumer is getting (LTE or WiMAX, etc) and a map of the coverage area of service.

180 days

Eshoo's law is a little tricky when it comes to prepaid services. The bill exempts "off the shelf" transactions in which a customer buys a device that allows her to access a "specified quantity of prepaid advanced wireless mobile broadband service" and when the consumer's experience with the seller is such that she "would not expect such agents to have expertise regarding the terms and conditions of such service."

This would presumably apply to those throwaway mobiles for sale at your local pharmacy/convenience store. But the bill does apply those six guarantees to "packagers of prepaid mobile wireless service." As for wholesalers, they must release the information necessary to permit the end-retailer to comply with the disclosure rules.

The FCC would have 180 days to publish these provisions and standards following the law's enactment. One year later the Commission would be required to complete a study evaluating advanced wireless broadband speeds in the US as provided by the ten biggest carriers.

Consumer advocates are happy about this proposed law. The Eshoo bill "will help people cut through the clutter so we can compare prices and options, and we can better understand what really constitutes 4G data service," says Parul Desai of the Consumers Union, which publishes Consumer Reports. "Right now, there aren't a lot of consumer protections for mobile broadband customers."

The mobile industry is less pleased. "We are concerned that the bill proposes to add a new layer of regulation to a new and exciting set of services," warned CTIA - The Wireless Association, "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."

The Next Generation Wireless Disclosure Act has been referred to the House Energy and Commerce Committee.

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