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Eshoo Bill Targets 4G Marketing Muddle
Wed, 06/22/2011 - 12:50pm

Wireless operators like AT&T and Verizon Wireless would be required to divulge specific information about services marketed as “4G” under a new bill proposed Wednesday by California congresswoman Anna Eshoo, the top Democrat on the House Subcommittee on Communications and Technology.

Under the terms of the proposed legislation, wireless providers with 4G-branded services would have to disclose guaranteed minimum data speeds; network reliability statistics; coverage maps; pricing; technology used to provide 4G; and network conditions that can affect customers’ speeds. 

The information would have to be made available to customers at the point of sale and in all billing materials.

The bill, dubbed the “Next Generation Wireless Disclosure Act,” also requires the FCC to calculate the speed and price of wireless data service branded as 4G by the top 10 U.S. wireless providers. The information would be used by the FCC to provide consumers with a side-by-side comparison to 4G-branded services in their area.

"Consumers deserve to know exactly what they're getting for their money when they sign up for a 4G data plan," Rep. Eshoo said in a statement. Eshoo argued the bill was necessary because customers “often experience vastly different speeds” for 4G service because there is no standard definition for the technology. “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.”

The proposal comes amid intensive marketing of a variety of different network technologies as “4G,” including Verizon Wireless’ LTE network, AT&T’s HSPA network, T-Mobile’s HSPA+ network and the WiMAX service offered by Sprint and Clearwire.

The term 4G, once reserved for technologies meeting certain qualifications laid out by the International Telecommunications Union, has become little more than a marketing term for services offering faster data speeds than their predecessors.

Consumers Union, the New America Foundation's Open Technology Initiative, the Media Access Project and Public Knowledge all voiced support for the bill, which has been referred to the House Energy & Commerce Committee.

The bill received a mixed response from the wireless industry.

CTIA government affairs executive Jot Carpenter said the group was concerned the bill would add unnecessary regulations to “an inherently complex and dynamic environment in which network speeds can vary depending on a wide variety of factors.”

Verizon Wireless had a different response.

“Congresswoman Eshoo identifies a very real problem. At a time when some wireless companies muddy the waters by simply renaming their 3G networks "4G", sunlight should shine on those claims,” said Verizon Wireless spokesman Jeffrey Nelson. “When companies exaggerate their claims, and relegate technology advances into nothing more than marketing games, they shouldn't be surprised when elected officials insist that consumers receive truthful and accurate information.”

Eshoo’s legislation still has a ways to go. The bill must clear the House Energy & Commerce Committee before it hits Congress, and then must pass a vote in the Senate before making its way to the president’s desk.

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