The new head of the Federal Communications Commission is abandoning a proposal to ban landlords and condo operators from imposing “bulk billing” arrangements for internet services, calling it “regulatory overreach.”
The Commission has “ended consideration” of the ban, FCC Chairman Brendan Carr said in a statement on Monday, arguing the proposal risked raising internet fees for Americans living in apartments “by as much as 50%.”
“This regulatory overreach from Washington would have hit families right in their pocketbooks at a time when they were already hurting from the last Administration’s inflationary policies,” Carr added. “That is why you saw a broad and bipartisan coalition of groups opposing the plan. After all, seniors, students, and low-income individuals would have been hit particularly hard.”
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Carr’s predecessor, Jessica Rosenworcel, said the ban would benefit consumers. In March, she introduced the proposal as a way to stop landlords and condos from forcing tenants to pay for unwanted or inferior internet plans.
“Everyone deserves to have a choice of broadband provider. That is why 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,” she said at the time.
In response, Rosenworcel proposed letting tenants opt out of such bulk billing arrangements, closing an apparent loophole in an FCC rule meant to ban exclusive internet contracts for buildings. Some consumers have also complained that bulk billing arrangements can burden them with a single, subpar internet service that costs more. “This approach failed miserably at an HOA I was a part of. Once the contract was signed by the HOA, the ISP had no competition for a period of time and they were awful,” wrote one internet user.
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Still, Rosenworcel’s plan was met with resistance from cable providers, housing advocates, and a bipartisan group of 50 mayors, who urged the FCC to protect bulk billing, citing its cost benefits to consumers. “Monthly bulk pricing is typically 50% lower than promotional rates for comparable retail packages, and unlike retail plans, bulk plans normally do not include extra nonrecurring fees like installation charges,” the Bulk Broadband Alliance argued.
In October, the same alliance urged the FCC to drop the ban, saying a recent US court decision showed the Commission lacked the authority to regulate bulk billing deals.
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About Michael Kan
Senior Reporter
