The fair use policies that apply to these offers are catching too many customers by surprise, and could even clash with net neutrality rules
The BIPT intervenes following complaints: The Belgian regulator, the BIPT, opened a consultation on Wednesday on guidelines for the provision of internet offers labelled as ‘unlimited’. The BIPT felt the need to intervene due to market developments and complaints it received from consumers with regards to Fair Usage Policies (FUPs) which often apply and in practice end up limiting a user’s data allowance. According to the Belgian Ombudsman for Telecoms, consumers have often trusted the description of ‘unlimited’ when subscribing, only to be surprised after discovering the FUP thresholds at a later stage. The problem is particularly evident in mobile offers. The BIPT found that more than 10% of mobile customers exceed the FUP limit, and for about a third of mobile offers this goes up to 20%. Only 2% of fixed customers exceed the FUP.
FUPs could conflict with net neutrality rules: The BIPT notes that the practice of applying FUPs to ‘unlimited’ offers could be in conflict with the EU Open Internet Regulation, according to which commercial conditions cannot limit the rights of end users to access and disseminate content. Data caps are not prohibited, but ISPs need to be clear about these conditions, as there is no doubt that marketing a plan as ‘unlimited’ serves a business purpose and aims to attract customers. Accordingly, a plan cannot be marketed as such if the ISP stops the service once a threshold is reached.
ISPs will have to communicate more clearly: The guidelines proposed by the BIPT mainly require ISPs to be more transparent. If more than 10% of an ISP’s customers exceed the FUP, the ISP should either increase the limit or change its commercial and contractual conditions, so that customers are no longer led to believe they are getting unlimited data. Should an ISP not do so within six months, or should 20% of its customers reach the FUP limit, the BIPT will take action against the ISP. Operators will also have to communicate their FUPs more clearly in their documentation and on their website. The guidelines are under consultation until 17 September. Once approved, the BIPT expects ISPs to adapt their offers within six months.
