Dive Brief:

• The Federal Communications Commission announced a proposed rule last week that, if approved, would prevent housing or other providers from entering “bulk billing” arrangements with internet, cable or satellite companies. 
• Under these arrangements, property owners offer internet access and other cable/broadband services to residents through a deal with a specific provider, rather than residents choosing a plan of their own accord.
• On top of banning bulk billing, the proposed rule would allow tenants to opt out of bulk billing agreements. The intention of the rule is to reduce costs for residents, allow for consumer choice in communication services and preserve competition between internet providers in a given building, according to the FCC.

Dive Insight:

A number of multifamily industry organizations are pushing back against the proposal. 

In a joint statement, the National Multifamily Housing Council and the National Apartment Association said that the FCC’s proposed rule, rather than boosting competition, would disincentivize providers’ investment in broadband services, especially for low-income and smaller properties. 

“[The proposed rule] 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,” the statement reads. 

The rule would also prevent multifamily companies from forming agreements with providers for lower broadband rates for their residents, according to the NAA and NMHC. 

“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,” the statement says, “not reduce options and in turn, potentially disconnect millions of American families.”

This proposed rule follows an earlier move from the Federal Trade Commission to ban junk fees in business transactions, including multifamily rental agreements. If implemented, the Trade Regulation Rule on Unfair or Deceptive Fees would prohibit businesses from charging hidden fees that are not disclosed upfront in a transaction.

A Notice of Proposed Rulemaking has not yet been issued. Once published on the Federal Register, the FCC will open a 30-day public comment period on the rule.