Groups still at odds over FCC's proposed bulk billing ban

A coalition of public interest and progressive action groups filed a letter with the FCC last week expressing support for a proposal to ban bulk billing arrangements for broadband and telecom services in multi-dwelling environments and apartment buildings. But that letter follows months of continued pushback from opponents of the proposal, including ACA Connects and others.

The FCC's proposal in question, circulated via press release in March, would seek to restrict bulk billing arrangements for service providers in multi-tenant environments (MTEs), in order to give tenants more of a choice. According to the press release, a notice of proposed rulemaking was being circulated internally which would ban bulk billing arrangements in such buildings and/or allow tenants to opt out, as well as "seek comment on other practices that may limit consumer choice in multi-unit buildings."

While the FCC has yet to publish a notice of proposed rulemaking for public comment, the issue has since drawn plenty of reaction.

Most recently, on the pro side, a coalition of 31 groups, including Public Knowledge, the American Civil Liberties Union (ACLU), Consumer Reports, the Institute for Local Self-Reliance and others, submitted a letter to FCC Chairwoman Jessica Rosenworcel last week (July 31), arguing in favor of allowing tenants to opt out of bulk billing arrangements.

Related:Rosenworcel wants to broaden broadband choice in multi-tenant buildings

"As they exist now, bulk billing arrangements sacrifice consumer choice to preserve in-building monopolies at the expense of tenants. For the many tenants trapped with high-cost or less-capable internet that does not meet their needs, an opt out option provides a vital escape," states the letter. "The undersigned organizations support the appropriate middle ground of permitting residents to opt out of the bulk billing arrangement."

The letter goes on to say that allowing tenants to opt out is particularly crucial for low-income consumers, and that it would lead to higher-quality service: "An entire building or complex using the same shared spectrum on the same network for its primary connectivity can lead to performance and reliability problems less likely with wired connections for individual units. Signal strength varies for each residence depending on the location of base stations; therefore, the ability to opt out of bulk billing arrangements gives residents the opportunity to get the service that meets their connectivity needs."

The groups also urge the FCC to open a public comment period on the matter.

"The Commission can add questions that have emerged as a result of the recent barrage of presentations, and receive broad public input to address these questions," suggests the letter.

Related:ACA Connects asks FCC to pump the brakes on plan to ban 'bulk billing' in MDUs

The detractors

Indeed, that "barrage of presentations" is coming from a range of groups, several of which – including ACA Connects, EducationSuperHighway, the National Apartment Association (NAA) and others – have recently organized under an entity called the Bulk Broadband Alliance (BBA) to push back on the proposed bulk billing ban.

In a press release announcing that alliance in late July, the groups said the BBA is "dedicated to educating the public and policymakers on the important benefits of bulk billing arrangements for broadband and cable TV services and ensuring these benefits remain available to and undiminished for consumers."

Through its website, the alliance is specifically urging people to contact their member of Congress and the FCC, via a pre-written, editable form letter, telling them to "reject any proposed bulk billing arrangement rule."

The letter reads: "Bulk billing arrangements for broadband and video services offer residents several advantages over individual retail options. These agreements give residents substantial discounts (often 50-65%) on these services. Additionally, residents receive higher-quality service. Service providers usually invest in infrastructure upgrades like fiber optics and managed Wi-Fi as part of these agreements, enabling residents to receive faster, more reliable service and other community-wide digital amenities. Moreover, these agreements typically offer enhanced customer service, including dedicated support and performance guarantees. Furthermore, cities and public housing authorities utilize bulk billing to provide low-cost or even free internet access to low-income residents, a crucial and effective step towards bridging the digital divide ... The FCC's proposed rule, whether it bans bulk billing outright or mandates opt-out options, would eliminate these benefits and harm consumers."

The formation of BBA follows months of pushback led by ACA Connects and others, including various homeowner and condo associations.

In April, ACA Connects and EducationSuperHighway hosted a joint press conference to raise concerns about the FCC's proposal, arguing it would create chaos and lead to unintended consequences for consumers.

The groups also argued that an opt-out option for tenants would likely not work, as bulk billing agreements depend on certain penetration rates to be economically viable.

The FCC's proposed effort to ban bulk billing follows a prior move under Chairwoman Rosenworcel to ban broadband providers from entering into certain revenue sharing and wiring agreements with building owners, and requiring providers to inform tenants about exclusive marketing arrangements. Those rules went into effect in 2022.