The Federal Communications Commission (FCC) has abandoned a proposal to ban bulk broadband billing for residents of apartments, condominiums, and public housing. FCC Chair Brendan Carr announced Monday that the agency will drop the plan, which sought to prohibit landlords from requiring tenants to pay for broadband, cable, and satellite services provided by specific communications providers, even if tenants did not want these services. Carr, who took over as chair last week after being appointed by President Donald Trump, expressed concerns that the proposal could increase the cost of internet service for apartment dwellers by as much as 50%.
Former FCC Chair Jessica Rosenworcel, who championed the proposal, argued in March that it would stimulate competition for communication services among millions of renters. The National Multifamily Housing Council, the National Apartment Association, and the Real Estate Technology and Transformation Center applauded Carr’s decision to withdraw the proposal.
Fcc abandons bulk billing ban
They argued that bulk billing agreements benefit millions of consumers, including renters, homeowners, and condominium owners, by allowing property owners to negotiate directly with internet providers, typically securing high-speed internet rates up to 50% lower than standard retail pricing. However, around 30 public interest groups supported the proposal. They stated that many tenants, who are stuck with high-cost or inadequate internet services that do not meet their needs, would greatly benefit from an opt-out option.
These groups also contended that landlords do not always pass on the savings from negotiated rates to the tenants. Carr has pledged to repeal many other communications regulations enacted by the FCC. Earlier this month, an appeals court struck down the significant net neutrality rules.