Carr's decision to pull FCC's bulk billing probe draws cheers and jeersCarr's decision to pull FCC's bulk billing probe draws cheers and jeers

Brendan Carr, the FCC's new Republican chairman, has dropped a proposal to ban bulk billing in apartments and other MDUs, arguing that a ban would raise prices. The decision drew irritation and praise.

Jeff Baumgartner, Senior Editor

January 28, 2025

2 Min Read
FCC headquarters in Washington DC
(Source: B Christopher/Alamy Stock Photo)

Several broadband-focused associations were pleased to learn that new Federal Communications Commission (FCC) Chairman Brendan Carr pulled back a potential rule-seeking effort to ban bulk billing in apartments that was introduced under the Commission's previous chair, Jessica Rosenworcel.

As Ted Hearn pointed out in his PolicyBand newsletter, Carr, who was against the FCC's involvement in such a ban, recently cleared the Commission's "Items of Circulation" section late last week. The bulk billing previously was on that list. The cancellation of the proposal means the bulk billing issue will die on the vine and won't become a formal rulemaking effort anytime soon.

Rosenworcel's proposal sought to ban bulk billing for broadband in apartments, condos and other types of multiple-dwelling units (MDUs) that typically enable building owners to negotiate discounted rates for broadband services on behalf of their residents.

She argued that a ban would open up service choice, holding that it is often the case that tenants in MDUs are forced to pay high prices with limited service provider choices for broadband and other services. "Everyone deserves to have a choice of broadband provider," Rosenworcel said at the time.

Cheers and jeers

Like all FCC proposals, the bulk billing ban item received support and push back.

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

Public Knowledge, the American Civil Liberties Union, Consumer Reports and the Institute for Local Self-Reliance were among those that were in favor of Rosenworcel's proposal.

In comments to Ars Technica, John Bergmayer, legal director at Public Knowledge, called the decision to pull back the proposal a "shame," holding that arguments for bulk billing "were spurious or overblown" and that bulk billing arrangements "require people to pay for Internet service they don't want or need."

Among examples of those against the proposal, ACA Connects, an organization that represents hundreds of small and midsized independent US broadband service providers, and EducationSuperHighway, a national nonprofit focused on closing the digital divide for millions of low-income households, had urged the FCC to "pump the brakes" on the item and reassess the proposed ban.

They argued in part that a ban on bulk billing would be misguided and create "unintended consequences" and harm vulnerable households that can't afford to pay a higher, traditional retail rate for broadband.

Carr, a Republican member of the FCC who succeeded Rosenworcel as chairman, agreed. The proposal, which he characterized as an "overreach," could have "raised the price of Internet service for Americans living in apartments by as much as 50%," he claimed in a statement issued Monday.

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

Carr's move drew praise from several organizations that had fought the ban:

View post on X

The Bulk Broadband Alliance, a group founded by a group that includes ACA Connects, echoed Spellmeyer:

View post on X

About the Author

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like