A bill aimed at limiting mobile carriers’ ability to inflate prices beyond a reasonable margin, setting a 15% cap on price inflation relative to overhead costs. This bill is designed to increase transparency, protect consumers, and ensure that carriers don’t overcharge.
The Fair Mobile Data Pricing Act of 2024
Section 1: Title This Act shall be known as “The Fair Mobile Data Pricing Act of 2024.”
Section 2: Purpose The purpose of this Act is to protect consumers from unfair pricing practices in the mobile telecommunications industry, promote transparency, and ensure that mobile carriers do not inflate the cost of data services beyond a reasonable profit margin. This Act aims to cap mobile data prices to 15% above the verified overhead costs of service provision.
Section 3: Definitions For the purposes of this Act, the following terms shall have the indicated meanings:
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Mobile Carrier: A company providing mobile telecommunications services, including voice, text, and data services.
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Overhead Costs: All direct and indirect expenses incurred by a mobile carrier in providing mobile data services. This includes, but is not limited to, infrastructure maintenance, spectrum licensing, network management, customer support, and regulatory compliance.
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Price Inflation: The increase in the cost of mobile data services, measured by the price charged to the consumer, above the baseline overhead costs.
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Telecommunications Regulatory Authority (TRA): The government body responsible for regulating telecommunications markets and enforcing the provisions of this Act.
Section 4: Price Cap for Mobile Data Services
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Limit on Price Increase: Mobile carriers shall not increase the price of mobile data services by more than 15% of their verified overhead costs for any given period (e.g., annually).
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Price Increase Reporting: Carriers must submit detailed annual financial reports to the Telecommunications Regulatory Authority (TRA), including the breakdown of their overhead costs related to mobile data services. These reports must be made publicly available for review to ensure transparency.
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Enforcement of Cap: The TRA shall have the authority to review and approve or deny any price increases submitted by mobile carriers. If a proposed price increase exceeds the 15% margin above overhead costs, the TRA shall disapprove the increase and issue a formal notification to the carrier.
Section 5: Overhead Cost Verification
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Independent Audits: Carriers shall be required to undergo independent audits of their overhead costs at least once every three years. These audits must be performed by a third-party accounting firm that is certified by the Telecommunications Regulatory Authority (TRA).
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Audit Findings: If a carrier refuses to cooperate with an audit or provides misleading or incomplete information, the TRA may impose penalties, including fines and restrictions on price increases for a period of up to five years.
Section 6: Exceptions
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Extraordinary Circumstances: In cases of extreme financial hardship or other extraordinary circumstances (such as natural disasters, war, or significant technological shifts), the TRA may grant temporary exceptions allowing price increases above the 15% limit, but these exceptions must not exceed 25% above overhead costs and must be strictly time-limited.
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Innovation and Investment: Carriers can apply for permission to temporarily raise prices beyond the 15% cap if they are making significant investments in infrastructure, technology, or consumer service improvements that benefit the public. These increases must be accompanied by a clear plan outlining the investments and the expected public benefits.
Section 7: Penalties for Non-Compliance
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Fines: If a mobile carrier is found to be charging prices that exceed the 15% price inflation cap without the proper approval from the TRA, the carrier shall be subject to fines up to 5% of their annual revenue from mobile data services.
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Revocation of License: Persistent offenders who repeatedly violate the provisions of this Act may have their telecommunications operating licenses suspended or revoked for up to one year.
Section 8: Transparency and Consumer Protection
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Price Transparency: Mobile carriers must provide clear, upfront information about their pricing structures, including any potential price increases, on their websites and in their advertising materials. This information must include the breakdown of how prices relate to overhead costs and profit margins.
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Consumer Rights: Consumers will have the right to file complaints regarding unjustified price increases with the TRA. The TRA will establish an expedited process for resolving disputes and ensure consumer grievances are addressed within 30 days.
Section 9: Review and Adjustment of the Act The Telecommunications Regulatory Authority (TRA) shall conduct a comprehensive review of the Act’s implementation every three years. Based on the findings, the TRA may propose adjustments to the price cap, enforcement mechanisms, or other provisions of the Act to ensure that mobile data pricing remains fair and competitive.
Section 10: Effective Date This Act shall take effect on 01/20/2025, and mobile carriers must comply with the provisions outlined herein starting from 01/01/2026.