Multifamily Blogs

FCC Competitive Broadband ruling gives MDUs more options

In a unanimous vote, the Federal Communications Commission decided to open apartment and condominium buildings to more internet and broadband competition.

A 2008 rule already on the books limited landlords’ ability to enter into exclusive deals with cable and internet service providers, but there were loopholes that effectively allowed providers and landlords to keep renters stuck with one ISP and internet service, at whatever price it wanted to charge.

The new rule would force landlords to disclose those arrangements and give renters more options and allow Landlords to add their own managed Wi-Fi Service, giving them an option to create their own revenue stream.

Language from the order:

“The rules we adopt thus prohibit providers from (1) executing new graduated or exclusive revenue sharing agreements, and (2) enforcing existing graduated or exclusive revenue sharing agreements on a going forward basis”
This is basically saying that NO new exclusive revenue share agreements may be signed and providers with existing agreements may not enforce the exclusivity provisions anymore.
For existing contracts, enforcement will be prohibited by approximately September 1st, 2022. Graduated or tiered revenue sharing agreements are now prohibited as well.

Contact us to find out what this mean for owners, operators and landlords of multi-tenant apartment buildings!


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