Today, Public Knowledge and American Economic Liberties Project joined nearly 30 other public interest, consumer advocacy, and civil liberties groups in a letter urging the Federal Communications Commission to seek comment on permitting multi-tenant building residents to opt-out of bulk billing arrangements which can limit access to lower broadband prices. The groups argue that the agency should move forward with a reported Notice of Proposed Rulemaking to increase consumer choice and ensure that Americans – particularly low-income households – can access more affordable broadband plans and benefits like the Lifeline program or the Affordable Connectivity Program, should it be revived.
The following is an excerpt from the letter:
“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. This is especially true for those eligible for low-income plans or the Lifeline subsidy, which, by definition, are not available in a bulk billing arrangement. It also introduces competitive pressure to ensure that landlords and [broadband providers] do not enter sweetheart deals at the expense of tenants – particularly low-income tenants.
“Tenants make their decision on where to rent due to a wide variety of factors, and because landlords have no obligation to inform tenants of the potential additional cost of ‘utilities’ until the point of sale, landlords do not necessarily have the incentive to pass on any savings negotiated with an [internet service provider] to the tenants. [Additionally], when landlords choose broadband service, they do not necessarily choose a reliable wireline connection to each individual apartment. Instead, they often prioritize breadth of connectivity over quality of connection. [For these and other reasons, we] support… permitting residents to opt out of bulk billing arrangements.”
You may view the letter for more information. You may also view our blog post, “Apartment Dwellers Should Be Able To Choose Their Own Broadband Provider,” to learn more about how bulk billing arrangements limit consumer choice in multi-tenant environments.
Members of the media may contact Communications Director Shiva Stella with inquiries, interview requests, or to join the Public Knowledge press list at shiva@publicknowledge.org or 405-249-9435.