FCC Chief Says Time Right To Reexamine Bulk Billing In Apts.

July 1, 2024 | Christopher Cole | Law360

The Federal Communications Commission needs to consider establishing rules that would limit bulk billing deals for broadband service because its record on the issue is outdated, FCC Chair Jessica Rosenworcel told a Florida Democrat concerned that new rules could harm low-income consumers.

In a letter written in mid-June but not released until Friday, Rosenworcel told Rep. Sheila Cherfilus-McCormick, D-Fla., that the agency needs to explore the issue to see if anticompetitive bulk plans can be reined in to the benefit of tenants.

Rosenworcel said when the FCC proposed bulk billing restrictions in March that tenants are too often forced to pay high prices with limited choices for internet or other services, and that she wants to expand choice and lower costs for residents of multi-tenant buildings. But Cherfilus-McCormick noted in a May letter to the FCC chief that the last time the FCC reached a conclusion about the issue, in 2010, it found the agreements predominately offer consumer benefits.

In her response to the lawmaker, Rosenworcel acknowledged that finding, but said the agency still needs to account for newer data.

“A lot can change in 14 years and, as is true with many policies in the telecommunications sector, it is often in the public interest to reexamine long-standing policies to ensure they have kept up with changes in technology and the marketplace, especially when it comes to consumer protection and choice,” she said.

The March draft proposal “provides an opportunity to build a record on these matters that reflects the consumer experience today, and that is why it is important to have the public weigh in on these issues,” Rosenworcel added.

Cherfilus-McCormick, whose district covers parts of Broward and Palm Beach counties, told the agency head in May that she was “deeply concerned” about the FCC’s proposal, saying the policy shift “could disproportionately impact low-income and fixed-income residents, particularly our seniors and veterans who rely on these arrangements for affordable digital access.”

The House member said about 50% of households in her district are part of homeowner associations or apartment communities that could benefit from bulk billing “and should continue to have that competitive option to provide the lowest rates to their residents.”

Cherfilus-McCormick said it was “imperative that any regulatory changes foster an environment where all individuals, regardless of their economic status, have equitable access to broadband services. This is essential not only for connecting with loved ones but also for accessing health care services, educational materials, and employment opportunities.”

A spokesperson for Cherfilus-McCormick did not immediately respond to a request for comment Monday.

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