FCC has introduced a new proposal to safeguard customers against cable operators and DBS providers’ additional service charges.
Here are the details of the news.
FCC Proposes Protections Against Video Service Fees
The United States‘ communication regulatory body, the Federal Communications Commission (FCC), has announced a new proposal to terminate video service junk fee billing by cable operators and Direct Broadcast Satellite (DBS) providers.
In an announcement, FCC Chairwoman Jessica Rosenworcel said, “No one wants to pay junk fees for something they don’t want or can’t use. When companies charge customers early termination fees, it limits their freedom to choose the service they want.”
“In an increasingly competitive media market, we should make it easier for Americans to use their purchasing power to promote innovation and expand competition within the industry,” added Rosenworcel.
The new proposal, called a Notice of Proposed Rulemaking, proposes to protect customers by prohibiting cable operators and DBS service providers from charging a fee for the early termination of a cable or DBS video service contract.
In addition, it also suggests mandating cable and DBS service providers to give subscribers a prorated credit or rebate for the remaining unused days in the billing cycle when a customer cancels their service.
TV video service subscribers may want to end their service for many reasons, including movement, financial trouble, or poor service. People are required to pay early termination charges if they end their video service contract before its expiry date.
As such, switching providers during the contract term becomes costly for the subscribers while also limiting their choices. This, in turn, affects the provider’s competition for services in the market.
Again, billing cycle charges require TV video service subscribers to pay for a complete billing cycle even if the subscriber terminates service before the end of their billing cycle. This means customers pay even for the services they do not use.
The proposal is set for a Commission vote on the December 13 Open Meeting. If adopted by full vote, cable and satellite companies could not charge customers for discontinuing their service contracts before expiration.
This would offer people free to switch providers anytime without incurring a penalty.
Also, providers would be banned from charging fees for ending service within a billing cycle. Additionally, the providers would have to pay customers a rebate for the remaining days in the billing cycle.
This would protect people from being additionally charged for the services they do not use.
Along with the proposal against video service fees, the FCC has announced plans to execute Broadband Consumer Labels and proposed ‘all-in-pricing’ for cable and satellite services.
The FCC’s proposal is a significant move to protect customers against cable operators’ and providers’ unfair billing rules to earn profits.
It will help consumers save their service charges by reducing their overall video service costs and increasing their freedom to choose providers. Also, the proposal would boost competition in the provider’s marketplace
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