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= 2025 FCC Bulk Billing Decision Impact on Tenant Choice =
=2025 FCC Bulk Billing Decision Impact on Tenant Choice=


In January 2025, the Federal Communications Commission (FCC) made a sweeping decision affecting consumer choice in broadband internet for residents of multi-tenant buildings. This decision reversed course on a previous proposal that would have given tenants more control over their internet service provider options.
In January 2025, the [[Federal Communications Commission]] (FCC) made a sweeping decision affecting consumer choice in broadband internet for residents of multi-tenant buildings. This decision reversed course on a previous proposal that would have given tenants more control over their internet service provider options.


== Understanding the Changes: A Timeline ==
==Background==
In March 2024, then-FCC Chairwoman Jessica Rosenworcel announced a proposal aimed at increasing tenant's choice at choosing their ISP for internet access in multi-tenant buildings.<ref name="doc-4009">[[:File:DOC-400915A1.pdf|FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS"]] ''FCC''. March 5, 2024</ref> The proposal followed the Commission's 2022 rules that had already:


To get how consumer rights with internet service in multi-tenant buildings have changed over the years, here is the timeline:
*Prohibited broadband providers from entering into certain revenue sharing agreements with building owners
*Required providers to clearly inform tenants about exclusive marketing arrangements
*Clarified that FCC rules prohibit "sale-and-leaseback" arrangements that block competitive access


=== Pre-2022 Status Quo ===
The March 2024 proposal would have specifically targeted "bulk billing" arrangements - agreements where tenants are required to pay for a specific provider's internet service as part of their rent or utilities, even if they don't want that service. The proposed rules would have:
Prior to 2022, three key practices existed:
* Building owners couldn't enter into "exclusive access" agreements (e.g., preventing Verizon from wiring a building that TimeWarner serviced)
* Building owners could implement "bulk billing" arrangements (requiring all tenants to pay for a specific provider's service as part of rent)
* Building owners could enter into revenue sharing agreements with ISPs


=== 2022 FCC Rule Changes ===
*Allowed tenants to opt out of bulk billing arrangements
In 2022, the FCC modified these rules<ref>Ars Technica, "FCC chair helps ISPs and landlords make deals that renters can't escape", January 27, 2025</ref>:
*Made it more economically viable for competing providers to serve buildings where tenants were previously required to pay for a specific provider's service
* The ban on exclusive access agreements remained
*Maintained existing prohibitions on revenue sharing and exclusive access agreements
* Bulk billing arrangements remained permissible
* Revenue sharing agreements between building owners and ISPs were prohibited


=== March 2024 Proposed Changes ===
Rosenworcel argued this change was necessary because "it is not right when your building or apartment complex chooses that service for you, saddling you with unwanted costs, and preventing you from signing up for the plan and provider you really want."<ref name="doc-4009" />
Then-Chairwoman Rosenworcel's proposal would have<ref>FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS", March 5, 2024</ref>:
* Maintained the ban on exclusive access agreements
* Required bulk billing arrangements to include tenant opt-out provisions
* Maintained the ban on revenue sharing agreements


=== January 2025 Final Outcome ===
==Timeline of changes==
Chairman Carr's decision maintained the 2022-2024 framework<ref>FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach", January 27, 2025</ref>:
* Building owners still cannot enter exclusive access agreements
* Building owners can continue mandatory bulk billing without opt-out provisions
* Revenue sharing agreements remain prohibited


=== Practical Example ===
===Pre-2022 Status Quo===
Here's how these rules would work in practice in an apartment complex in 2025:
Prior to 2022:
* The landlord can't prevent Verizon from installing service even if they prefer TimeWarner (exclusive access prohibition)
*Building owners couldn't enter into "exclusive access" agreements (e.g., preventing Verizon from wiring a building that TimeWarner serviced)
* The landlord can require all tenants to pay $50 monthly for TimeWarner service as part of their rent, even if tenants don't want it (bulk billing permitted)
*Building owners could implement "bulk billing" arrangements (requiring all tenants to pay for a specific provider's service as part of rent)
* The landlord can't receive payments or revenue shares from TimeWarner in exchange for making their service mandatory (revenue sharing prohibition)


This negatively affects consumer choice through the bulk billing provision, by forcing tenants into paying for service from a provider they may not want. While multiple providers may have physical access to a building, the economic reality of mandatory bulk billing greatly diminishes the economic viability of another ISP wiring the building.
===2022 FCC Rule Changes===
In 2022, the FCC modified its rules regarding multi-tenant environments:<ref>[https://arstechnica.com/tech-policy/2025/01/fcc-chair-nixes-plan-to-boost-broadband-competition-in-apartment-buildings/ "FCC chair helps ISPs and landlords make deals that renters can't escape"] ''Ars Technica'', January 27, 2025. Retrieved 2 February, 2025.</ref>
*The ban on exclusive access agreements remained
*Bulk billing arrangements remained permissible
*The FCC added new rules regarding revenue sharing agreements between landlords and ISPs(this is the process by which the ISP can share revenue from tenants with the landlord after they enter into a "bulk billing" agreement)


== Background ==
===March 2024 Proposed Changes===
Then-Chairwoman Rosenworcel's proposal would have:<ref name="doc-4009"/>
*Maintained the ban on exclusive access agreements
*Required bulk billing arrangements to include tenant opt-out provisions


In March 2024, then-FCC Chairwoman Jessica Rosenworcel proposed rules that would've banned mandatory "bulk billing" arrangements in multi-tenant buildings<ref>FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS", March 5, 2024</ref>.<ref>[[:File:DOC-400915A1.pdf]]</ref> Under those arrangements tenants have to pay for internet service from a specific ISP chosen by the landlord; even if they would prefer a different provider.
===January 2025 Final Outcome===
Chairman Carr's decision specifically addressed the bulk billing proposal:<ref>[[:File:DOC-409130A1.pdf|FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach"]] ''FCC'', January 27, 2025</ref>
*Building owners still cannot enter exclusive access agreements
*Building owners can continue mandatory bulk billing without opt-out provisions


The proposed rules would've:
===Practical Example===
* Allowed tenants to opt out of bulk billing arrangements
Here's how these rules work in practice in an apartment complex in 2025:
* Banned mandatory payment for unwanted services
*The landlord can't prevent Verizon from installing service even if they prefer TimeWarner (exclusive access prohibition)
* Tried to increase competition by making it viable for alternative providers to serve these buildings. Tenants may be less likely to pay for internet with another provider if they are forced to pay for internet with their current provider.
*The landlord can require all tenants to pay $50 monthly for TimeWarner service as part of their rent, even if tenants don't want it (bulk billing permitted)


== The 2025 Decision ==
Chairman Carr's 2025 announcement specifically addressed bulk billing arrangements without clarifying the status of the 2022 revenue sharing rules.


On January 24, 2025, FCC Chairman Brendan Carr ended consideration of the bulk billing proposal<ref>FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach", January 27, 2025</ref>. <ref>[[:File:DOC-409130A1.pdf]]</ref> This decision maintains the status quo where:
Bulk billing provision is said to negatively affect consumer choice, as it can force tenants into paying for service from a provider they may not want. While multiple providers may have physical access to a building, the economic reality of mandatory bulk billing greatly diminishes the economic viability of another ISP wiring the building.  
 
==References==
* Property owners can keep forcing tenants to participate in bulk billing arrangements
* Tenants must pay for the building's chosen ISP even if they don't want the service
* Alternative providers face economic barriers to serving buildings with bulk billing arrangements
 
== How this wrecks Consumer Choice & freedom ==
 
The decision has different implications for consumers depending on their perspective and situation:
 
=== Potential Benefits Cited by Supporters ===
The National Multifamily Housing Council and other industry groups argue that bulk billing arrangements<ref>Ars Technica, "FCC chair helps ISPs and landlords make deals that renters can't escape", January 27, 2025</ref>:
* Secure internet service at rates up to 50% lower than standard retail pricing
* Remove barriers like credit checks & security deposits
* Make high-speed internet more accessible for low-income renters and seniors
 
=== Consumer Protection Concerns ===
Consumer advocacy groups including Public Knowledge have identified several issues<ref>Ars Technica, "FCC chair helps ISPs and landlords make deals that renters can't escape", January 27, 2025</ref>:
* Tenants cannot opt out of internet they don't want or need
* Residents eligible for low-income plans or Lifeline subsidies cannot access these programs
* The arrangements create "in-building monopolies"
 
== Relationship to Existing Rules ==
 
This decision exists within an overall framework of FCC rules regarding multi-tenant environments. The Commission previously:
* Banned exclusive service agreements giving providers sole rights to serve a building
* Prohibited revenue sharing arrangements between landlords and ISPs
* Required providers to disclose exclusive marketing arrangements to tenants
 
== References ==
<references />
<references />


[[Category:Internet Service Providers]]
[[Category:Incidents]]
[[Category:Internet service providers]]
[[Category:Consumer Choice]]
[[Category:Consumer Choice]]
[[Category:FCC Regulations]]
[[Category:FCC Regulations]]
[[Category:2025 Consumer Protection Changes]]
[[Category:2025 Consumer Protection Changes]]

Latest revision as of 12:24, 13 March 2025

2025 FCC Bulk Billing Decision Impact on Tenant Choice[edit | edit source]

In January 2025, the Federal Communications Commission (FCC) made a sweeping decision affecting consumer choice in broadband internet for residents of multi-tenant buildings. This decision reversed course on a previous proposal that would have given tenants more control over their internet service provider options.

Background[edit | edit source]

In March 2024, then-FCC Chairwoman Jessica Rosenworcel announced a proposal aimed at increasing tenant's choice at choosing their ISP for internet access in multi-tenant buildings.[1] The proposal followed the Commission's 2022 rules that had already:

  • Prohibited broadband providers from entering into certain revenue sharing agreements with building owners
  • Required providers to clearly inform tenants about exclusive marketing arrangements
  • Clarified that FCC rules prohibit "sale-and-leaseback" arrangements that block competitive access

The March 2024 proposal would have specifically targeted "bulk billing" arrangements - agreements where tenants are required to pay for a specific provider's internet service as part of their rent or utilities, even if they don't want that service. The proposed rules would have:

  • Allowed tenants to opt out of bulk billing arrangements
  • Made it more economically viable for competing providers to serve buildings where tenants were previously required to pay for a specific provider's service
  • Maintained existing prohibitions on revenue sharing and exclusive access agreements

Rosenworcel argued this change was necessary because "it is not right when your building or apartment complex chooses that service for you, saddling you with unwanted costs, and preventing you from signing up for the plan and provider you really want."[1]

Timeline of changes[edit | edit source]

Pre-2022 Status Quo[edit | edit source]

Prior to 2022:

  • Building owners couldn't enter into "exclusive access" agreements (e.g., preventing Verizon from wiring a building that TimeWarner serviced)
  • Building owners could implement "bulk billing" arrangements (requiring all tenants to pay for a specific provider's service as part of rent)

2022 FCC Rule Changes[edit | edit source]

In 2022, the FCC modified its rules regarding multi-tenant environments:[2]

  • The ban on exclusive access agreements remained
  • Bulk billing arrangements remained permissible
  • The FCC added new rules regarding revenue sharing agreements between landlords and ISPs(this is the process by which the ISP can share revenue from tenants with the landlord after they enter into a "bulk billing" agreement)

March 2024 Proposed Changes[edit | edit source]

Then-Chairwoman Rosenworcel's proposal would have:[1]

  • Maintained the ban on exclusive access agreements
  • Required bulk billing arrangements to include tenant opt-out provisions

January 2025 Final Outcome[edit | edit source]

Chairman Carr's decision specifically addressed the bulk billing proposal:[3]

  • Building owners still cannot enter exclusive access agreements
  • Building owners can continue mandatory bulk billing without opt-out provisions

Practical Example[edit | edit source]

Here's how these rules work in practice in an apartment complex in 2025:

  • The landlord can't prevent Verizon from installing service even if they prefer TimeWarner (exclusive access prohibition)
  • The landlord can require all tenants to pay $50 monthly for TimeWarner service as part of their rent, even if tenants don't want it (bulk billing permitted)

Chairman Carr's 2025 announcement specifically addressed bulk billing arrangements without clarifying the status of the 2022 revenue sharing rules.

Bulk billing provision is said to negatively affect consumer choice, as it can force tenants into paying for service from a provider they may not want. While multiple providers may have physical access to a building, the economic reality of mandatory bulk billing greatly diminishes the economic viability of another ISP wiring the building.

References[edit | edit source]

  1. ↑ Jump up to: 1.0 1.1 1.2 FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS" FCC. March 5, 2024
  2. ↑ "FCC chair helps ISPs and landlords make deals that renters can't escape" Ars Technica, January 27, 2025. Retrieved 2 February, 2025.
  3. ↑ FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach" FCC, January 27, 2025
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