FCC Adopts Rule Banning Revenue-Sharing of Apartment and Office Broadband Service

The FCC has adopted a new rule regarding apartment broadband service. The order bans certain revenue-sharing agreements and requires providers to clearly disclose marketing practices for broadband. 

The FCC says the rules will unlock broadband competition for those living and working in apartments, public housing, office buildings, and other multi-tenant buildings. The regulation prohibits broadband providers from entering into revenue-sharing agreements with a building owner that keep competitive providers out of buildings. 

The National Multifamily Housing Council stated that it was disappointed with the ruling, and issued a statement reading, in part:

"The FCC claims its actions will increase competition, lower costs, and promote broadband in apartment buildings. Yet, by nullifying existing, legal agreements between broadband providers and property owners, the Order may very well discourage investment and harm deployment and maintenance of broadband networks, particularly in already underserved properties most in need of broadband deployment and modernization. Unfortunately, the Order does nothing to help Americans living in these communities that lack adequate broadband service, including lower-income, affordable and smaller rental properties. 

"The multifamily industry cares deeply about equitable access and providing the highest quality of broadband to our residents. Industry data shows competition and superior broadband service already exists, with 80 percent of apartments surveyed having two or more providers on site.

"The reality is that apartment residents, by-and-large, are well served and often receive better, faster, cheaper, and more reliable broadband than what is typically available in the broader market. This is the model that the FCC should look to replicate as we aim to address the digital divide—not upend it.

"Where the broadband market is failing and needs intervention in the multifamily environment is in lower-income, affordable and smaller properties. Building owners often struggle to find even one provider to serve a property and provide up-to-date broadband service in these locations."