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The word "forced" is a common word in regard to bulk billing comments
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Some people don't watch TV and don't want to pay for it
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Some people have fiber but are forced to pay for cable
Individuals are filing comments with the FCC about their experiences with bulk billing. They’re complaining that they’re forced to pay for cable TV when they don’t want it and they’re forced to get broadband from cable providers even if they currently have fiber broadband, which they love.
The comments are the result of FCC Chairwoman Jessica Rosenworcel's plans to initiate a proceeding to ban bulk billing arrangements in multi-tenant environments, such as apartment buildings. And even though the FCC hasn’t formally issued a notice of inquiry, ex parte comments are coming into the agency, both in favor and against.
So far, comments from trade associations and service providers (and all their lawyers) are generally opposed to a ban on bulk billing.
But the more interesting comments have been filed by individuals who are not fans of bulk billing.
For instance, a comment filed by Johnathan David Smith says that in January 2023 he received a complex-wide announcement that all tenants would be forced onto a plan with Charter’s Spectrum service for $85 per month. The plan includes cable TV, which Smith does not want. He doesn’t even own a TV.
Similarly, Becca Scholte wrote, “My apartment complex is requiring all residents to switch to a specific internet/Direct TV package. Currently, I purposely only pay for internet. I do not watch TV except through streaming services."
"However, this package is forcing everyone to also get TV service and the package itself is double what I'm currently paying,” said Scholte
Jason Parrish wrote that his apartment complex is moving to a bulk billing agreement with Charter’s Spectrum that will cost him $85 per month. “I have been a happy customer with Google Fiber service for years now and do not want to be forced to switch. I used to have Spectrum and was very dissatisfied with their service and numerous downtime events. My Google Fiber service has never gone down.”
Stuart Holden filed comments saying, he’s a customer of Frontier and receives fiber internet with 500 Mbps symmetrical speeds. Now, his condo association has signed a bulk billing contract with Spectrum where he will receive 500/25 Mbps. Since he works from home and needs symmetrical fiber speeds, he’s kept his Frontier service but also pays for the Spectrum service, which he does not want.
Aside from individuals, at least one trade group has qualms about bulk billing.
The Wireless Internet Service Provider’s Association (WISPA) filed comments, acknowledging that bulk billing can provide “a valuable consumer benefit by offering broadband service at up to 60% off retail rates” and that this is especially important for low-income or public housing developments.
However, WISPA said bulk billing causes problems when the agreements include anti-competitive practices that prevent tenants from opting out or when other providers are denied access to install their technologies.
Opposition to a ban
Most trade groups and service providers that have filed comments so far defend bulk billing. The cable trade group ACA Connects says that bulk billing arrangements help tenants by substantially lowering their cost for broadband.
ACA Connects members are even opposed to a compromise that would allow bulk billing but permit residents to opt out. An ACA Connects official on a call with media last week said its members don’t see that as a workable solution because “getting 100% penetration helps them make the business case.”
While “100% penetration” sounds anti-competitive, some comments point out that there is a very competitive process among service providers to win bulk billing contracts in the first place.
Blue Stream Fiber wrote, “This is a highly competitive marketplace whereby associations use their considerable collective bargaining power to negotiate benefits and deeply discounted pricing.” The company also said that multi-tenant associations solicit bids that typically attract five to seven bidders.