FCC Unanimously Adopts MTE Broadband Rules

The FCC unanimously adopted new rules for broadband access in multi-tenant environments Friday that crack down on revenue sharing and exclusive access agreements, said an order posted Tuesday (see 2202080065). The rules apply to telecom carriers in commercial and residential MTEs, and multichannel video programming distributors subject to section 628(b) in residential MTEs. Providers are prohibited from entering exclusive or graduated revenue sharing agreements, with the rule applying to agreements signed after the effective date of the rules and those already in place. Those with existing contracts will have 180 days after Federal Register publication to come into compliance. The FCC disagreed with commenters that the MTE broadband marketplace is competitive so further action is unnecessary (see 2202090046). Providers will be required to comply with a consumer disclosure requirement for any exclusive marketing agreements. A declaratory ruling clarifying the prohibition on sale-and-leaseback arrangements was also adopted. The new rules are “important steps that will increase competition,” said Chairwoman Jessica Rosenworcel. “Every American should have access to high-quality, affordable modern communications services,” said Commissioner Geoffrey Starks. Commissioner Brendan Carr said the actions “align with commission precedents as well as the iron laws of economics.” Commissioner Nathan Simington didn’t issue a statement.