It has been a busy start to the week for newly appointed FCC Chair Brendan Carr. After reinstating complaints of media bias against President Trump, the FCC has withdrawn a proposal to restrict high-speed internet bulk-billing agreements.
Bulk billing agreements are a business model that provides discounted internet access to residents living in apartments, townhomes, condominiums, or any other multi-family dwelling unit. The apartment rental owners and homeowners’ association (HOA) contracts secure a deal with the internet service provider (ISP) and the residents pay a discounted rate for their internet and cable services, but usually, they are mandatory and residents can’t opt out.
The proposal would’ve allowed those residents to opt out of mandatory bulk billing agreements, so they could choose their providers who fit their budgets and needs. This would’ve paved the way for residents who are forced to pay for traditional cable or satellite service to have the option of switching to a streaming service and not be forced to pay cancellation fees.
“Everyone deserves to have a choice of broadband provider,” said Former FCC Chairwoman Rosenworcel last March when the plan was announced. “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. This proposal shuts down these practices. It boosts competition and consumer choice and builds on our ongoing efforts to improve broadband transparency.”
With the announcement of the withdrawal, Chairman Carr’s decision was met with applause from the National Multifamily Housing Council (NMHC), the National Apartment Association (NAA) and the Real Estate Technology and Transformation Center (RETTC).
“Bulk-billing agreements allow property owners to negotiate directly with internet-service providers, typically securing high-speed internet for renters at rates up to 50 percent lower than standard retail pricing. In addition to the savings, bulk billing removes barriers to broadband adoption like credit checks, security deposits, equipment rentals, or installation fees,” in a statement released by the trio.
“We’re glad to see that Chairman Carr has taken banning bulk billing off the table. That’s a huge win for renters,” said Sharon Wilson Géno, President of NMHC. “Bulk-billing arrangements have made high-speed internet more accessible and affordable for millions of Americans, especially for low-income renters and seniors living in affordable housing. We’re glad that the Chairman and the FCC are sticking up for housing providers and renters, rather than threatening the existing regulatory framework that has been so successful in deploying affordable and reliable broadband to communities across the nation.”
Across the country, over 4 million people canceled their cable subscriptions in 2024, which was around 22,000 cancellations per day. As the streaming market continues to grow, this announcement ensures that millions are stuck paying for cable or traditional TV, even if they do not want it.