Bulk Billing Advocacy Alliance Launched

July 23, 2024 – An alliance of organizations that advocate and support improved broadband infrastructure and services launched the Bulk Broadband Alliance on Tuesday. 

The organizations, including EducationSuperHighway, the Community Associations Institute, the National Multifamily Housing Council, the National Apartment Association, and America’s Communications Association, formed the Bulk Broadband Alliance to educate policymakers and the public on the benefits of bulk billing arrangements for internet services.

As the Federal Communications Commission explores efforts to regulate bulk billing arrangements, the Bulk Broadband Alliance aims to ensure that these benefits remain accessible to consumers. Bulk billing arrangements, which bundle internet and cable TV services into residents' fees or rent to negotiate with internet service providers for broadband services at a reduced rate, are commonly found in apartment complexes, condominium and homeowner association-governed properties, senior living facilities, and student housing.

Grant Spellmeyer, president and CEO of ACA Connects, stated that bulk billing agreements provide customers with discounted rates and quality service, while promoting competition and investment in advanced infrastructure. “ACA Connects is proud to partner with other associations representing bulk billing purchasers and broadband advocacy groups in the Alliance to protect this win-win for our members and the communities they serve.”

The bulk billing model provides significant benefits to consumers, including monthly pricing that is typically 50 percent lower than promotional rates for traditional retail services, said Spellmeyer. Additionally, bulk plans usually do not include additional fees such as installation charges. He said that these agreements enhance the quality of service compared to retail, offering faster speeds, minimum performance standards, and improved digital amenities at properties.

"Bulk billing provides a strategic advantage for multi-dwelling units and consumers, unlocking greater technology at a lower rate," said Dawn M. Bauman, chief strategy officer at the Community Associations Institute. "These arrangements generally translate to cost savings on services like internet and cable TV, while providing a level of quality and reliability that surpasses traditional retail service." She noted that this long-standing model continues to prove its value to residents in multi-dwelling units and all communities.

Adeyinka Ogunlegan, vice president of government affairs and policy at the nonprofit organization EducationSuperHighway, which aims to close the digital divide, believes that bulk billing agreements are a “cornerstone of digital equity initiatives” to close the digital divide for essential services, education, healthcare, and opportunities. “Bulk billing has been pivotal in making it affordable for residents in multi-dwelling units, especially those in public and affordable housing, to connect to the online world,” she said.   

The Bulk Broadband Alliance will focus on representing stakeholders and educating policymakers about the potential harm of restricting such agreements, such as Federal Communications Commission Chairwoman Jessica Rosenworcel's May 5 proposal to eliminate bulk billing, which could impact millions of consumers. The FCC believes consumers should have the option to "opt-out" of arrangements that mandate a specific broadband provider for their household.

Rosenworcel's regulation is aimed at giving tenants locked into exclusive internet provider contracts the ability to opt-out, thus, in her view, promoting consumer choice and competition among providers.

“A lot can change in 14 years. It is often in the public interest to reexamine long-standing policies to ensure they have kept up with changes in technology and the marketplace, especially when it comes to consumer protection and choice,” Rosenworcel said.

"The Chairwoman's proposals to regulate bulk billing arrangements… would undermine the economic rationale for bulk deals, driving up costs for consumers and hindering new deployments in MDUs,” said Sharon Wilson Géno, president of the National Multifamily Housing Council. “This would harm residents and increase housing affordability challenges."