Washington, Jan 27 (Reuters) - Federal Communications Commission Chair Brendan Carr announced on Monday that the agency will abandon a proposed Biden administration initiative to ban "bulk billing" of broadband internet for residents of apartments, condominiums, and public housing.
The plan aimed to eliminate the requirement for tenants to pay for broadband, cable, and satellite services from a specific provider, even if they did not want the service.
Carr, who assumed the role of chair last week after being appointed by President Donald Trump, expressed concerns that the proposal could increase internet service costs for individuals residing in apartments by up to 50%.
Former FCC Chair Jessica Rosenworcel mentioned in March that the proposal would enhance competition among communication service providers for millions of renters by making it more financially viable for alternative providers to offer services in buildings where serving consumers is currently deemed too costly due to mandatory service agreements.
The National Multifamily Housing Council, the National Apartment Association, and the Real Estate Technology and Transformation Center applauded Carr's decision to retract the proposal, which would have limited bulk-billing agreements for high-speed internet.
These organizations stated that this choice ensures millions of consumers - renters, homeowners, and condominium owners - will continue to benefit from bulk billing. Such agreements enable property owners to negotiate directly with internet service providers, typically resulting in high-speed internet rates up to 50% lower than standard retail prices.
Nearly 30 public interest groups supported the proposal, arguing that an opt-out alternative is crucial for many tenants who are stuck with costly or inadequate internet service that does not meet their requirements. These groups also noted that landlords might not have the incentive to pass on any savings negotiated with an internet service provider to the tenants.
Carr has pledged to repeal numerous other communication regulations put in place by the FCC during Biden's tenure. Recently, an appeals court upheld significant Biden-era net neutrality rules.