Telecom customers would get automatic bill credits for outages lasting 4-plus hours

What does this do?

S 4557 would require phone, cable, satellite TV, and internet companies with more than 5,000 customers to automatically apply a bill credit whenever service is interrupted for four hours or more. The credit equals one-thirtieth of the monthly bill for each day service is out, and customers who cancel are owed a refund within 30 days. Planned maintenance outages that companies announce in advance are not covered.

Who does it affect?

This bill affects most Americans who pay for home internet, cable TV, satellite TV, or phone service. It applies to providers with more than 5,000 customers.

Why does it matter?

Companies would be required to apply credits without waiting for customers to call or complain, shifting the burden of tracking outages from the customer to the provider. The Federal Communications Commission would have 18 months after enactment to write specific rules and set penalties, and states could pass their own stronger protections on top of the federal requirements.

What does it cost, and who pays?

• No penalty amounts set yet
• FCC to define fines within 18 months
• States may add stronger rules

Where does it stand?