May 1, 2024
FCC must not eliminate bulk billing agreements
In the current digital era, broadband is as essential as utilities like water and electricity. Initiatives like the Affordable Connectivity Program (ACP) that President Joe Biden fought to have included under the Infrastructure Investment and Jobs Act have started to bridge the digital divide by improving accessibility and affordability.
However, a recent Federal Communications Commission (FCC) proposal threatens this progress.
The proposal aims to eliminate bulk billing agreements— arrangements that significantly reduce broadband costs for residents in multi-tenant communities, such as homeowners’ associations (HOAs) and affordable housing complexes. The FCC is well-warranted to go after unscrupulous landlords who withhold the proper disclaimers, keeping tenants in the dark about the guidelines of the agreement hoping to make a profit off tenants by not being transparent. While intended to curb dishonest practices by some landlords, the sweeping nature of the FCC’s proposal could have detrimental effects on communities that rely on these agreements for affordable connectivity.
In Georgia, which ranks at the top of the list of states in terms of HOA membership nationally with 2.3 million residents who are members of an HOA, these agreements are crucial. HOA boards, composed of community members, leverage these agreements to negotiate up to 50% lower rates for their communities compared to individual plans. The FCC’s proposal would strip away this bargaining power, potentially causing a significant increase in costs for millions.
Furthermore, for residents in affordable housing, bulk billing is vital for overcoming economic barriers to internet access. Without these agreements, local governments and housing providers may face challenges in securing favorable terms with internet service providers, leading to higher costs for residents—impacting underserved communities most severely. As the leading digital equity non-profit EducationSuperHighway notes, without bulk billing agreements local governments and affordable housing providers “may struggle to negotiate favorable terms with ISPs, leading to higher internet costs for residents.”
Affordability is still the number one factor preventing Americans from being online As the ACP nears expiration, removing such a critical tool as bulk billing for affordable internet access could worsen the digital divide. It’s crucial that the FCC adopts a more targeted approach to address specific abuses without dismantling a system that makes broadband more accessible and affordable.
The Biden Administration has significantly advanced digital equity. To continue this progress, the FCC must reconsider this proposal. A more nuanced strategy is necessary to ensure that efforts to combat dishonest practices do not undermine the broader goal of digital inclusivity.
State Sen. Sonya Halpern, D-Atlanta, was elected in 2020 and serves as the Senate Minority Caucus Vice Chairwoman, as well as Vice Chairwoman of the Urban Affairs Committee