NACo Opposed to FCC's Bulk Billing Ban

WASHINGTON, August 8, 2024 – A major governmental organization has decided to oppose Federal Communications Commission Chairwoman Jessica Rosenworcel's plan to allow renters to opt-out of Internet access service included in their monthly rent without penalty.

The National Association of Counties – which represents 3.6 million county employees – recently joined the ranks of organizations urging Rosenworcel to reconsider her proposal to ban bulk billing agreements between owners of multi-tenant buildings and internet service providers.

NACo, led by President James Gore, issued a resolution in opposition to the ban as part of it’s American County Platform for 2024-25, the organization’s permanent policy document that reflects the philosophy and overall objectives of NACo’s membership.

NACo represents more than 3,000 counties and serves nearly 40,000 county elected officials.

The FCC’s proposed bulk billing ban has sparked controversy since Rosenworcel announced the plan in March. The proposal would eliminate arrangements between building owners and internet service providers in multi-tenant environments, such as apartments and condos, arguing that it would lower costs and increase broadband service choices.

However, connectivity advocates, industry representatives, and landlords have argued that the ban would increase internet access costs for roughly one-third of Americans living in multi-tenant housing. 

NACo's policy document warned, "A ban on the practice could have the adverse effect of disincentivizing broadband buildout to affordable housing units, reducing affordable options to broadband for residents, and further exacerbating the digital divide for affected households."

Bulk billing agreements allow building owners, such as homeowners associations and condominium owner associations, to negotiate with ISPs to provide broadband services to all units at a reduced rate.

Proponents of bulk billing have claimed the practice benefited the economically disadvantaged by eliminating the need for credit checks, installation fees, and individual contracts.  

And, industry leaders warned consumer costs would "skyrocket" under a bulk billing ban during a Broadband Breakfast Live Online in May.

“The reality is that the FCC’s bulk billing ban is, fundamentally, a political proposal not borne of hard data,” Nate Scherer, policy analyst with the American Consumer Institute, wrote for Broadband Breakfast. “The FCC would be wise to think long and hard before moving to ban bulk billing agreements.”

NACo urged the FCC to pause its efforts to ban bulk billing arrangements. It also called for increased transparency from service providers and building owners.