On Monday, FCC Chairman Brendan Carr announced that the notice of proposed rulemaking for a potential ban on bulk billing agreements for broadband services in housing has been withdrawn. Carr stated that banning bulk billing arrangements, where property owners and broadband companies create exclusive service agreements for residential properties, would raise broadband prices for residents by as much as 50%.
Former FCC Chairwoman Jessica Rosenworcel announced the initial proposal to ban bulk billing agreements last March. This proposal highlighted that such arrangements require residents to pay for a specific service provider’s services, regardless of whether or not they actually use them. The suggested rule would enable individual tenants to opt out of these bulk billing agreements.
The National Multifamily Housing Council and the National Apartment Association opposed the proposal at the time, arguing that it would discourage investment in broadband access for residential properties. Both organizations later partnered with the Washington, D.C.-based Real Estate Technology and Transformation Center to commend the withdrawal of the proposal in a statement released on January 27.
The coalition stated that bulk billing arrangements enable owners to negotiate lower prices for their residents, sometimes reducing costs by as much as 50%. These arrangements also eliminate barriers to access, such as credit checks, security deposits, equipment rentals, and installation fees.
“We are pleased to see that Chairman Carr has removed the option of banning bulk billing from consideration. This is a significant victory for renters,” said Sharon Wilson Géno, president of the NMHC, in the statement.
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