FCC pushes for lower broadband costs, more competition in apartments

Looking to build on a set of rules established in 2022, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel is proposing new rules that aim to lower the costs and increase choice for broadband services delivered to apartment buildings, condos and other types of multi-dwelling units (MDUs).

Rosenworcel's proposal aims to ban "bulk billing" arrangements imposed on tenants for broadband, cable and satellite offerings provided by a specific provider. Specifically, the rules would allow tenants to opt-out of bulk billing.

The new rules will also seek ways to open up competition for MDU-focused services.

Too often, Rosenworcel argues, 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 in a statement. "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."

In anticipation of a comment period and a future vote, Rosenworcel is circulating her notice of proposed rulemaking (NPRM) with other FCC commissioners. The NPRM will seek comments on other practices that might limit choice in MDUs.

Related:FCC votes to crack down on cable and satellite TV 'junk fees'

Rosenworcel's new proposal arrives about two years after the adoption of a set of rules aimed at boosting competition and service transparency in MDUs, including a ban that prevents broadband service providers from striking certain revenue-sharing deals with building owners and to inform tenants about any exclusive marketing arrangements between service providers and building owners.

Those rules also banned "sale-and-leaseback" arrangements that can block access to alternative providers.

Moving ahead on 'junk fees,' broadband nutrition labels

Meanwhile, the FCC is pushing ahead on new rules designed to ban early termination fees and other "junk fees" for pay-TV, and is set to vote on final rules that would require cable operators, telcos and satellite operators to clearly specify the "all-in" pricing for services at its next meeting.

The Commission is also nearing the launch of mandatory nutrition-style broadband consumer labels. As reported by Light Reading earlier this week, service providers are not required to list information related to the Affordable Connectivity Program (ACP) on their broadband labels. That detail emerges amid the threat that funding for the ACP will run out in April.

Related:FCC wants 'all-in' price for cable and satellite video services

The FCC confirmed Monday (March 4) that the agency, short of an extension of additional funding from Congress, will only be able to fully fund the program through the month of April. A recent FCC-commissioned survey found that the vast majority of ACP recipients will see some form of service disruption if the program ends.