As the Federal Communications Commission (FCC) explores new rules on bulk billing arrangements, the National Multifamily Housing Council (NMHC) and the National Apartment Association have joined EducationSuperHighway, the Community Associations Institute (CAI), and America’s Communications Association to launch the Bulk Broadband Alliance (BBA).
This new coalition was created to educate policymakers and the public on the benefits of bulk billing arrangements for broadband and cable services. This billing model—with internet and cable TV services typically bundled into resident fees or rent—is most commonly found in multi-dwelling units (MDUs), such as apartments, condo and homeowners’ association-governed properties, senior living, and student housing.
According to the BBA, the bulk billing model is advantageous compared with traditional retail service offerings, with monthly bulk pricing typically being 50% lower than promotional rates for comparable packages. It also noted that these agreements elevate the quality of service because bulk providers who negotiate with property owners are incentivized to invest in infrastructure upgrades as well as lead to a better customer experience with convenient setup and guaranteed reliability.
“Bulk billing provides a strategic advantage for MDUs and consumers, unlocking greater technology at a lower rate,” said Dawn M. Bauman, chief strategy officer at the CAI, which serves the interests of condominiums, housing cooperatives, HOAs, and their residents. “These arrangements generally translate to a cost savings on services like internet and cable TV while providing a level of quality and reliability that surpasses traditional retail service. This long-standing model continues to prove its value to residents in MDUs and all communities.”
In early March, FCC chairwoman Jessica Rosenworcel announced her intent to gather support for a Notice of Proposed Rulemaking to ban bulk billing agreements or mandate that residents subjected to these agreements be able to opt out of them.
“The chairwoman’s proposals to regulate bulk billing arrangements, whether through an outright ban or an opt-out mandate, would undermine the economic rationale for bulk deals, driving up costs for consumers and hindering new deployments in MDUs,” noted NMHC president Sharon Wilson Géno. “This would harm residents and increase housing affordability challenges. At a time of increasing housing costs and not enough housing supply, our country cannot afford to increase costs, hurt service quality, and negatively impact critical broadband access.”
