Navigating The Recent FCC Ruling & Response From Our Real Estate Partners

Access to reliable and affordable broadband service is essential, but millions of Americans don’t have a choice when it comes to broadband providers. For residents living in multifamily properties, broadband choice has historically been limited – resulting in higher prices and lower quality service. In an effort to encourage broadband competition within multifamily properties, the Federal Communications Commission (FCC) recently approved new competition rules, resulting in the following:

• A ban on exclusive revenue and graduated revenue share agreements.
• Required disclosure by ISPs of any existing exclusive building marketing agreements
• Prohibition of sale and lease-back wiring agreements.

Since the ruling, we’ve spoken to some real estate partners who shared with us how they’re navigating it all. Here’s what they had to say:

• On revenue share: “While exclusive agreements have helped drive revenue with one specific provider, we’re looking forward to diversifying and accelerating other revenue share agreements to open new avenues for growth.”
• On competition: “Our residents have demanded choice and now we can offer it. We’re leaning into this ruling.”
• On wire sale-and-leaseback agreements: “Wiring agreements have actually impeded our ability to offer alternative services in the past, despite wanting to do so.”
• On marketing exclusives: “That’s something the provider will need to take on and disclose, out of our hands.”

Wondering what this means for your portfolio? We’re here to help. Email properties@518331.com for a free consultation with the Starry team.

Happy Interneting