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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.
== 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>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> 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."<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>


== Understanding the Changes: A Timeline ==
== Understanding the Changes: A Timeline ==
Line 8: Line 24:


=== Pre-2022 Status Quo ===
=== Pre-2022 Status Quo ===
Prior to 2022, three key practices existed:
Prior to 2022, two 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 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 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 ===
=== 2022 FCC Rule Changes ===
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>:
In 2022, the FCC modified its rules regarding multi-tenant environments<ref>Ars Technica, "FCC chair helps ISPs and landlords make deals that renters can't escape", January 27, 2025</ref>:
* The ban on exclusive access agreements remained
* The ban on exclusive access agreements remained
* Bulk billing arrangements remained permissible
* Bulk billing arrangements remained permissible
* Revenue sharing agreements between building owners and ISPs were prohibited
* The FCC added new rules regarding revenue sharing agreements between landlords and ISPs


=== March 2024 Proposed Changes ===
=== March 2024 Proposed Changes ===
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>:
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><ref>[[:File:DOC-400915A1.pdf]]</ref>:
* Maintained the ban on exclusive access agreements
* Maintained the ban on exclusive access agreements
* Required bulk billing arrangements to include tenant opt-out provisions
* Required bulk billing arrangements to include tenant opt-out provisions
* Maintained the ban on revenue sharing agreements


=== January 2025 Final Outcome ===
=== January 2025 Final Outcome ===
Chairman Carr's decision maintained the 2022-2024 framework<ref>FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach", January 27, 2025</ref>:
Chairman Carr's decision specifically addressed the bulk billing proposal<ref>FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach", January 27, 2025</ref>[[:File:DOC-409130A1.pdf]]:
* Building owners still cannot enter exclusive access agreements
* Building owners still cannot enter exclusive access agreements
* Building owners can continue mandatory bulk billing without opt-out provisions
* Building owners can continue mandatory bulk billing without opt-out provisions
* Revenue sharing agreements remain prohibited


=== Practical Example ===
=== Practical Example ===
Here's how these rules would work in practice in an apartment complex in 2025:
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'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)
* 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 landlord can't receive payments or revenue shares from TimeWarner in exchange for making their service mandatory (revenue sharing prohibition)
 
While the FCC implemented rules in 2022 regarding revenue sharing between landlords and ISPs, Chairman Carr's 2025 announcement specifically addressed bulk billing arrangements without clarifying the status of those revenue sharing rules.


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.  
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.  


== Background ==
[Rest of sections remain the same until "Relationship to Existing Rules"]
 
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.
 
The proposed rules would've:
* Allowed tenants to opt out of bulk billing arrangements
* Banned mandatory payment for unwanted services
* 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 2025 Decision ==
 
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:
 
* 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 ==
== Relationship to Existing Rules ==
Line 76: Line 59:
This decision exists within an overall framework of FCC rules regarding multi-tenant environments. The Commission previously:
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
* Banned exclusive service agreements giving providers sole rights to serve a building
* Prohibited revenue sharing arrangements between landlords and ISPs
* Added rules in 2022 affecting revenue sharing arrangements between landlords and ISPs, though the current status of these rules following Chairman Carr's 2025 decision is not explicitly addressed in available materials
* Required providers to disclose exclusive marketing arrangements to tenants
* Required providers to disclose exclusive marketing arrangements to tenants


Revision as of 01:46, 2 February 2025

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.

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[1]. [2] 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."[3][4]

Understanding the Changes: A Timeline

To get how consumer rights with internet service in multi-tenant buildings have changed over the years, here is the timeline:

Pre-2022 Status Quo

Prior to 2022, two 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)

2022 FCC Rule Changes

In 2022, the FCC modified its rules regarding multi-tenant environments[5]:

  • 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

March 2024 Proposed Changes

Then-Chairwoman Rosenworcel's proposal would have[6][7]:

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

January 2025 Final Outcome

Chairman Carr's decision specifically addressed the bulk billing proposal[8]File:DOC-409130A1.pdf:

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

Practical Example

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)

While the FCC implemented rules in 2022 regarding revenue sharing between landlords and ISPs, Chairman Carr's 2025 announcement specifically addressed bulk billing arrangements without clarifying the status of those revenue sharing rules.

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.

[Rest of sections remain the same until "Relationship to Existing Rules"]

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
  • Added rules in 2022 affecting revenue sharing arrangements between landlords and ISPs, though the current status of these rules following Chairman Carr's 2025 decision is not explicitly addressed in available materials
  • Required providers to disclose exclusive marketing arrangements to tenants

References

  1. ↑ FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS", March 5, 2024
  2. ↑ File:DOC-400915A1.pdf
  3. ↑ FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS", March 5, 2024
  4. ↑ File:DOC-400915A1.pdf
  5. ↑ Ars Technica, "FCC chair helps ISPs and landlords make deals that renters can't escape", January 27, 2025
  6. ↑ FCC Press Release, "FCC CHAIRWOMAN ANNOUNCES PUSH TO LOWER BROADBAND COSTS & INCREASE CHOICE FOR FAMILIES LIVING IN APARTMENT BUILDINGS", March 5, 2024
  7. ↑ File:DOC-400915A1.pdf
  8. ↑ FCC Press Release, "Chairman Carr Stops Costly Regulatory Overreach", January 27, 2025
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