The Federal Communications Commission (FCC) has decided against a measure that would have limited apartment landlords’ ability to mandate bulk internet service agreements. This effectively allows landlords to force residents to pay for services from a specific provider. The new FCC chair, Brendan Carr, announced the elimination of a Biden-era proposal that aimed to curb these bulk billing arrangements.
Carr labeled the proposal as “regulatory overreach” and argued that it would have artificially raised internet service costs. Under the new stance, landlords can implement bulk billing deals with Internet Service Providers (ISPs). These deals require residents to pay for internet, cable, or satellite services from a designated provider, regardless of their preference.
While the FCC already bans bulk billing deals that include exclusive service rights, there is little motivation for other providers to establish competing services.
Bulk billing controversy and fcc decision
Carr’s decision reverses the approach taken by former FCC Chair Jessica Rosenworcel.
Rosenworcel championed the now-blocked proposal, claiming it would reduce broadband costs and increase provider options for tenants. She believed offering residents the choice to opt out of the building’s shared service provider would benefit consumers. This development has sparked a debate about consumer choice and competition in the broadband market.
Tenants often have limited options for internet service, and some argue that bulk billing arrangements can burden them with subpar service at higher costs. However, supporters of bulk billing, including cable providers, housing advocates, and a bipartisan group of mayors, urged the FCC to maintain these arrangements due to their cost benefits. The Bulk Broadband Alliance noted that “monthly bulk pricing is typically 50% lower than promotional rates for comparable retail packages.”
The FCC’s decision to refrain from regulating bulk billing arrangements aligns with previous stances and underscores the benefits of keeping these agreements free from unnecessary government hindrance.
For the multifamily industry, this development is a moment to celebrate, reflecting years of advocacy for bulk billing as a means to ensure affordable, high-speed internet access in multifamily communities.
