Coalition Says FCC Should Let Renters Opt Out of Bulk Broadband Billing

A coalition of 31 consumer and public interest advocacy groups urged the FCC to move forward with its NPRM under circulation regarding bulk broadband billing in multi-tenant environments. The groups, which included Public Knowledge, Consumer Reports, Consumer Action, National Consumer Law Center and New America's Open Technology Institute, told the FCC in a letter that bulk billing arrangements "sacrifice consumer choice to preserve in-building monopolies at the expense of tenants." The letter was posted Thursday in docket 17-142.

FCC Chairwoman Jessica Rosenworcel circulated the NPRM in March proposing a ban on such arrangements (see 2403050069). The item builds on a 2022 rule barring some revenue-sharing arrangements. Rosenworcel also indicated during a House Communications Subcommittee hearing in July that the commission will move forward with the proposal (see 2407090049).

"Tenants make their decision on where to rent due to a wide variety of factors," the letter said, and landlords "do not necessarily have the incentive to pass on any savings negotiated with an ISP to the tenants." Signal strength also varies for each residence "depending on the location of base stations," the coalition said, so the ability to opt out of bulk billing arrangements "gives residents the opportunity to get the service that meets their connectivity needs."

Bulk billing "frequently fails to meet the needs of low-income renters," the coalition said, noting that this "unrestricted practice" keeps low-income renters from choosing a low-income plan an ISP may offer. This practice also prevents low-income renters from participating in Lifeline, they said. The coalition also opposed allowing homeowners associations (HOA) to offer bulk billing without an opt-out option. HOAs "do not have the same profit motive as landlords," and have "some accountability to the residents," they said, "but this accountability is deeply flawed."

Allowing renters to opt out of a bulk broadband billing arrangement is an "appropriate middle ground" because tenants are "unlikely to opt out unless the in-building service is significantly inferior to service otherwise available" or can receive the same service at a significantly lower cost.

The "best way to determine whether bulk billing does more harm or more good" is "to move forward with the item," the coalition said. It noted that the FCC can also "add questions that have emerged as a result of the recent barrage of presentations" to determine whether providers "genuinely need 100% sign up to make service viable."

The Bulk Broadband Alliance raised concerns about the coalition letter in a statement. "Bulk billing arrangements have long-existed to provide lower-cost and higher-quality communications services for millions of Americans," the group said. The "unsubstantiated claims" in the coalition letter "do not diminish that reality" and allowing residents to opt out of bulk billing arrangements "defies economic reality and would harm the greater good." The group urged the FCC to withdraw its proposal. Commissioner Brendan Carr told the subcommittee in July that he opposed the proceeding, saying the FCC was "exceeding its authority in significant ways" (see 2407080039).