FCC Targets Multifamily Bulk Billing Arrangements

The Federal Communications Commission wants apartment residents to have the right to choose their broadband service partner and outlaw contracts in which landlords require their tenants to sign up to “bulk billing” arrangements.

Under these arrangements landlords insist that broadband, cable, and satellite service provided by a specific communications provider are used in the apartment, even if residents do not wish to take the service or would prefer to use another provider.

The FCC proposal, if passed, would allow tenants to opt out of these bulk billing arrangements and would “increase competition for communications service in these buildings by making it more profitable for competitive providers to deploy service in buildings where it is currently too expensive to serve consumers because tenants are required to take a certain provider’s service,” according to the notice.

The National Multifamily Housing Council and the National Apartment Association have come out against the proposal. Specifically, the two housing advocacy groups said while theproposal purportedly lays the groundwork for a rulemaking process at the Federal Communications Commission aimed at boosting competition, in actuality, it would do the opposite.

“Banning bulk internet agreements will harm residents and disincentivize investment in broadband service, especially in low-income, smaller, and more-affordable multifamily communities who struggle the most to get connected,” the groups said in a release.

“Worse, it runs in direct opposition to the historic federal investments and resources being poured into communities of all types to bridge the digital divide, by eliminating a cost effective, quick and reliable solution to improve broadband access and adoption.”

NAA and NMHC said that the Administration’s fact sheet and FCC’s subsequent press release rely heavily on anecdotes and are not supported by data or facts.

“The FCC itself has acknowledged the important role that rental housing providers can play in ensuring delivery of broadband to apartment residents through bulk billing arrangements,” they said.

“Through agreements with broadband providers, rental housing providers can use their market knowledge and leverage to negotiate cheaper, better, faster, and more reliable broadband to apartment residents than what is typically found in the surrounding community.

“Bulk billing arrangements are pro-consumer and pro-renter and help support property operations like climate resilience and our shared, long-term goals of improving housing affordability.

“The Administration and the FCC should be looking for ways to support and elevate bulk billing arrangements to leverage historic federal resources to boost broadband access, not reduce options and in turn, potentially disconnect millions of American families.”

Added Nicole Upano, AVP of Housing Policy and Regulatory Affairs at NAA, tells GlobeSt.com that the rental housing industry continues to strongly support the President’s actions to increase housing supply and therefore address affordability challenges.

“However, today’s announcement does not address housing availability or affordability, but instead places a misguided focus on multifamily partnership agreements with broadband service providers,” she said.

“Not only do housing providers need the ability to make decisions that best fit their business needs, but there also exists very real and costly infrastructure barriers that cannot be ignored. NAA remains engaged on this issue and will continue to work with industry and government stakeholders to address the unique needs of housing providers and residents alike.”

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