Bulk Billing Contracts for Broadband

Since this topic came up recently, I'm sharing this info that I received from CAI. Quoting from the email:

On March 5, U.S. Federal Communication Commission Chairwoman Jessica Rosenworcel proposed a sweeping ban on bulk billing arrangements in apartments, condominiums, housing cooperatives, public housing, and other multi-tenant buildings.

CAI is concerned this proposal will have a negative impact on residents such as seniors, fixed-income individuals, and students. Such a change will result in increased costs and lower quality service. Bulk billing agreements for broadband access through condominiums and homeowners’ associations are proven to benefit residents with lower costs, improved infrastructure, and faster internet access.

CAI is urging concerned individuals to contact their Congresspersons and voice their opinions.

Not sure I agree with all of CAI's points, but a change like this will impact communities that have such arrangements in place. As a board member, I'd maybe be less enthusiastic about re-negotiating a current contract until we know if the FCC's proposal gets any traction.

You're right about how these contracts got started.

I'm not aware of this being much of a thing in my area's HOAs/condos, but they are a thing in apartment complexes nearby. I know of two of them who recently went with fiber optics community-wide. But even they aren't providing the services to the renters - they just make the wiring available, while renters have to set up service with the providers on their own. The contracts are between the individual consumers and the provider, not between the provider and the apartment complex.

I don't believe that non-profits should be taking on business risks that properly belong in the for-profit arena. One of those risks is the rapid change in technology. The association will be left with out-of-date technology in the future. What's a selling point today will discourage future sales. The big broadband providers have the deep pockets to take on the constant need for innovation - they just price this into their services. HOA's, not so much.

I also don't think that community associations should be in the business of providing entertainment services for the residents. Especially not condos. In my state, condos can't even lawfully use assessment dollars for social events unless the CC&Rs specifically say that they can. HOAs may be different.

Anyway, I question some of CAI's assertions about how good these bulk contracts are for members of a community association. The big broadband providers wouldn't push them if they weren't getting a benefit in the form of predictable revenue streams and a certain number of customers who would otherwise have gone elsewhere as technology changes (or never would have been customers at all if they hadn't been forced into it). And they don't need to try to collect from deadbeat customers - that's on the HOA! The fact that these contracts may be a good deal for a certain percentage of community association members is incidental.