In a move praised by the multifamily industry, the Federal Communications Commission (FCC) is eliminating a Biden administration proposal on bulk internet service that would have curbed apartment landlords’ ability to force residents into paying for a single internet service provider, according to reports.
The change in bulk billing arrangements would allow landlords to make deals with ISPs that would make residents pay for internet, cable, and/or satellite television services from a specific provider even if they don’t want them.
The change was praised by multifamily groups saying it will lower costs.
“By making this move, the new FCC is acknowledging the critical role these agreements play in encouraging broadband investment, bridging the digital divide and lowering internet costs,” Bob Pinnegar, National Apartment Association President and CEO, said in a release.
“NAA looks forward to working alongside the FCC to develop policies that further expand broadband access and deliver results for the nation’s renters and housing providers.”
Deals renters can’t escape
Ars Technica reported that with bulk billing, deals in which a company agrees to provide service to every tenant of a building, residents are billed a prorated share of the total cost. Tenants may be billed by either the landlord or the provider. Bulk billing contracts are only banned by the FCC when they give a provider the exclusive right to access and serve a building. But when tenants are forced to pay for one provider’s service, other providers aren’t likely to see much opportunity in entering the building.
FCC Chairman Brendan Carr ended the commission’s consideration of a 2024, Biden-Harris Administration proposal that sought to regulate so-called “bulk billing” arrangements
“During the Biden-Harris Administration, FCC leadership put forward a ‘bulk billing’ proposal that could have raised the price of Internet service for Americans living in apartments by as much as 50 percent,” Carr said in a release.
“This regulatory overreach from Washington would have hit families right in their pocketbooks at a time when they were already hurting from the last Administration’s inflationary policies. That is why you saw a broad and bipartisan coalition of groups opposing the plan. After all, seniors, students, and low-income individuals would have been hit particularly hard.
“There is a lot of work ahead to reverse the last Administration’s costly regulatory overreach. I am glad to take a step in the right direction by ending the FCC’s consideration of a Biden-era plan that would have artificially raised the cost of Internet service,” Carr said in the release.
Change praised by multifamily groups
The National Multifamily Housing Council (NMHC), the National Apartment Association (NAA) and the Real Estate Technology and Transformation Center (RETTC) applauded Carr’s withdrawing a recent proposal to restrict high-speed internet bulk-billing agreements. His decision to withdraw the proposal will ensure that millions of consumers – renters, homeowners and condominium owners – will continue to reap the benefits of bulk billing,” the groups said in a release.
“We’re glad to see that Chairman Carr has taken banning bulk billing off the table. That’s a huge win for renters,” Sharon Wilson Géno, President of NMHC, said in the release.
“Bulk-billing arrangements have made high-speed internet more accessible and affordable for millions of Americans, especially for low-income renters and seniors living in affordable housing. We’re glad that the Chairman and the FCC are sticking up for housing providers and renters, rather than threatening the existing regulatory framework that has been so successful in deploying affordable and reliable broadband to communities across the nation,” she said.
Bulk-billing agreements allow property owners to negotiate directly with internet-service providers, typically securing high-speed internet for renters at rates up to 50 percent lower than standard retail pricing. In addition to the savings, bulk billing removes barriers to broadband adoption like credit checks, security deposits, equipment rentals, or installation fees, according to the release.
Beyond affordability, bulk billing can be key to powering next-generation services in rental housing. From smart-home technologies that make daily life more convenient to sustainability solutions that cut energy use, bulk billing helps renters meet the demands of modern life while also saving them money, the release said.
“The FCC has once again affirmed that bulk billing and managed WiFi solutions are of strong benefit to consumers and should be leveraged to overcome barriers to deployment, affordability and adoption, not regulated or restricted,” said Kevin Donnelly, Executive Director & Chief Advocacy Officer of the Real Estate Technology and Transformation Center (RETTC).
He said the change will “ensure housing providers and renters continue to have access to affordable, reliable broadband to support property operations and enable resident-desired services and seamless connectivity.”