FCC Drops Proposal on Broadband Competition in Apartments

Brendan Carr, a commissioner at the Federal Communications Commission (FCC), has decided against advancing a proposal that aimed to curb bulk billing arrangements between landlords and Internet Service Providers (ISPs). These deals often result in renters having little choice in their internet providers, effectively locking them into agreements that some argue they cannot escape from. The decision to withdraw the proposal has been met with praise from industry groups such as the National Multifamily Housing Council, National Apartment Association, and Real Estate Technology and Transformation Center who argue that these agreements offer renters reduced rates on broadband services compared to standard retail pricing.

According to a press release by these organizations, bulk billing arrangements often make high-speed Internet more accessible for many Americans, particularly benefiting low-income renters and seniors. While the FCC has previously prohibited exclusive access deals, other mechanisms still make it challenging for new ISPs to enter buildings, despite a 2022 FCC rule banning exclusive revenue-sharing agreements.

The proposal had faced opposition, notably from major players like Comcast, Charter, and Cox, along with the cable lobby group NCTA. They argued that the regulatory changes would lead to increased costs for consumers. Carr asserted that the proposal, if enacted during the Biden administration, would have amplified costs for Americans living in apartments by up to 50%, impacting seniors, students, and low-income individuals harshly. The statement by Carr, which signals a preference for market-driven policies, suggests intentions to counter what he sees as the prior administration’s costly regulatory measures.

For more information, see the full article on Ars Technica.