Broadband choice reduction by Brendan Carr's FCC

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. 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."

Timeline of changes

Pre-2022 Status Quo

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

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

• 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

Then-Chairwoman Rosenworcel's proposal would have:

• 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 proposalFile: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)

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.