Apartment landlords can legally block fiber ISPs despite FCC exclusive-deal ban

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The FCC banned exclusive access agreements between ISPs and building owners in 2007, but this rule only prevents ISPs from demanding exclusivity in contracts -- it does nothing to stop landlords from simply refusing to grant access to competing providers. A landlord can sign a revenue-sharing deal with one ISP (typically the incumbent cable company) and then deny physical access to any competitor, leaving tenants with exactly one broadband option. So what? Approximately 44 million US households live in apartments and condos. BroadbandNow research found that MDU residents frequently have only one broadband option and pay higher prices than single-family homeowners. Even when a fiber provider has built infrastructure to the building's property line, the landlord can refuse entry, stranding the investment. The structural reason this persists is that landlords profit from exclusive arrangements (through revenue sharing, free service for common areas, or bulk billing discounts) while tenants bear the cost of reduced competition. The FCC's 2024 attempt to ban bulk billing arrangements (which often accompany de facto exclusivity) generated significant opposition and stalled.

Evidence

FCC Consumer FAQ on MTE rules (updated 2024): exclusive access agreements prohibited, but landlord property rights preserved. BroadbandNow report: 'Apartment Landlords Are Holding Your Internet Hostage.' FCC MDU competition rules effective Aug 5, 2024. UK passed TILPA in 2024 giving tenants right to broadband upgrade regardless of landlord response (35-day access rule). Source: broadbandnow.com/report/apartment-landlords-holding-internet-hostage

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