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FCC Seeks To Increase ISP Competition In Apartment Buildings (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: Exclusive deals between broadband providers and landlords have long been a problem for Internet users, despite rules that are supposed to prevent or at least limit such arrangements. The Federal Communications Commission is starting to ask questions about whether it can do more to stop deals that impede broadband competition inside apartment and condominium buildings. FCC Chairman Ajit Pai yesterday released a draft Notice of Inquiry (NOI) that seeks public comment "on ways to facilitate greater consumer choice and to enhance broadband deployment in multiple tenant environments (MTEs)." The commission is scheduled to vote on the NOI at its June 22 meeting, and it would then take public comments before deciding whether to issue new rules or take any other action. The NOI discusses preempting local rules "that may expressly prohibit or have the effect of prohibiting the provision of telecommunications services" in multi-unit buildings. But one San Francisco regulation that could be preempted was designed to boost competition by expanding access to wires inside buildings. It's too early to tell whether the FCC really wants to preempt any state or city rules or what authority the FCC would use to do so. The NOI could also lead to an expansion of FCC rules, as it seeks comment on whether the commission should impose new restrictions on exclusive marketing and bulk billing arrangements between companies and building owners. The NOI further seeks comment on how "revenue sharing agreements and exclusive wiring arrangements between MTE owners and broadband providers may affect broadband competition" and "other contractual provisions and non-contractual practices that may impact the ability of broadband providers to compete in MTEs." The NOI also asks whether the commission should encourage cities and states to adopt model codes that promote competition in multi-unit buildings, and the document asks what practices those model codes should prohibit or mandate.

67 comments

  1. Excessive Regulations by Anonymous Coward · · Score: 0, Flamebait

    This is a case of excessive regulations on landlords. If you don't like the deal your landlord has negotiated, you are free to move to another apartment or buy a house. We don't need more regulations on landlords, which will only drive up the cost of renting and harm consumers.

    1. Re:Excessive Regulations by Anonymous Coward · · Score: 0

      You don't have to worry about that from this FCC. It's a joke. Performance theater at the expense of the poor and poor-in-spirit.

    2. Re:Excessive Regulations by irving47 · · Score: 1

      Who do you think has more money to throw around up on The Hill? The telcos, or the landlords? Isn't it technically illegal for the landlord to be getting a kickback for granting exclusive use, anyway? So, in theory, they'd have nothing to lose, anyway?

      --
      I had a sucky sig.
    3. Re: Excessive Regulations by Anonymous Coward · · Score: 0

      Need to seek increased competition among landlords to lower rents and to build affordable apartments instead of shitload of overpriced low quality carton boxes.

    4. Re:Excessive Regulations by Anonymous Coward · · Score: 0

      If you don't like the deal your landlord has negotiated, you are free to move to another apartment or buy a house.

      You seem to be optimising for frictionful, inefficient markets. "Drive up / harm" sounds like you're trying to "believe in free markets," or something, but you're doing it wrong and blindly siding with whoever has more power.

    5. Re:Excessive Regulations by Anonymous Coward · · Score: 0

      Illegal? You've mistaken this government for one that gives a damn.

    6. Re: Excessive Regulations by ravenshrike · · Score: 1

      Unfortunately that comes down to local zoning regulations which has nothing to do with the FCC.

    7. Re: Excessive Regulations by Anonymous Coward · · Score: 0

      Zoning regulations that ensure rent goes up geometrically, rather than arithmetically.

  2. What's the catch? by Anonymous Coward · · Score: 0

    There's no way he'd be writing up something so pro-consumer. I'm guessing this would do away with the ability for landlords to get a package deal where everyone (such as the building where my parents live) only pays 15$ a month for unlimited internet?

    1. Re: What's the catch? by Anonymous Coward · · Score: 0

      [citation needed]

    2. Re:What's the catch? by Anonymous Coward · · Score: 0

      Where does one get internet for $15/month? Do they live in a subsidized retirement complex?

    3. Re:What's the catch? by Anonymous Coward · · Score: 1

      No, my parents building in Burlington charges an extra 15/mo to every tenant that wants internet, but it's unlimited. Not sure which company they're with think it's a local.

      Damn good deal, though you can't get it any other way if you live there unless you're using your phone data or satellite.

    4. Re:What's the catch? by GameboyRMH · · Score: 1

      I'm guessing Verizon hasn't been doing as well as other ISPs at making shady backroom deals with landlords.

      --
      "When information is power, privacy is freedom" - Jah-Wren Ryel
    5. Re:What's the catch? by modmans2ndcoming · · Score: 1

      The building probably pays for a fiber connected to a tier 3 provider, assuming there are enough people in the building to make it worth it.

    6. Re:What's the catch? by Swave+An+deBwoner · · Score: 1

      There's a large coop in New York that gets "free Internet" for the apartments via a package deal the ISP negotiated with the coop management. Presumably the ISP likes the deal because they assume that most of the apartments will also buy their "Premium Cable" and phone packages. The agreement keeps other ISPs out by making it unprofitable for them to bring in service for what they assume will be just a handful of customers.

  3. Well... by Anonymous Coward · · Score: 0

    If they wanted to do that, they should have started by keeping net neutrality...

    Slow speeds for all apartment basement dwellers!!!

  4. FCC Seeks To Increase ISP Competition In Cities by FrankHaynes · · Score: 5, Interesting

    The headline you will never see.

    --
    slashdot: A failed experiment.
    1. Re:FCC Seeks To Increase ISP Competition In Cities by Anonymous Coward · · Score: 2, Interesting

      Agreed. Or competition anywhere. Where I live (dense neighborhood) there are only two choices... local cable or DSL... where DSL is only available if you purchase a commercial business account. This is what happens when your utilities are underground.

      Irony?

      https://arstechnica.com/information-technology/2017/04/one-broadband-choice-counts-as-competition-in-new-fcc-proposal/

    2. Re:FCC Seeks To Increase ISP Competition In Cities by Anonymous Coward · · Score: 0

      what they're really doing is helping their big business buddies... the providers that helped rip apart network neutrality, because it is often these same providers that are the ones totally locked out of these captive markets.

    3. Re:FCC Seeks To Increase ISP Competition In Cities by Orgasmatron · · Score: 5, Insightful

      You really need to figure out if your state public utility commission or some local body is preventing competition.

      I live in a semi-rural area outside of a small town. (town is ~2500 pop year-round, 2x 15k pop 20 miles in opposite directions, 120k pop 40 miles away, and a major metro 80 miles away) I have two fiber plants in my yard. Plus DSL available, plus long range wifi, plus cellular - but I don't consider them practical options. One of the fiber ISPs is a new-ish cable company. They have financing locked in and already have plans drawn up to build a new fiber plant in every town and city in the area they aren't already in.

      What is holding them back is not the allegedly insurmountable expense of building brand new fiber plant. It isn't a need or desire to only hit high density areas. No, the only thing holding them back is monopoly franchise agreements the incumbents hold with the local governments. Every time they kill one of those, not only do they build a new plant in that area, but the incumbent does too. Sometimes the incumbent announces their plans a month or so after swearing (to the city board or whatever) that it is too expensive to do.

      Figure out what is really preventing competition in your area, and fix it if you want things to get better.

      --
      See that "Preview" button?
    4. Re:FCC Seeks To Increase ISP Competition In Cities by Anonymous Coward · · Score: 0

      You're funny! Something meaningful and good for the consumer happening on Ajit Pai's watch?!

    5. Re:FCC Seeks To Increase ISP Competition In Cities by thule · · Score: 1

      THIS!

      The FCC can only do so much. It seems to me if we want to make Net Neutrality a non-issue, we need to get cracking at the local level.

  5. Ha! by Anonymous Coward · · Score: 0

    Where I live, the ILEC offers up to a whopping 7Mbps DSL package that, from what I've seen, runs at about 5Mbps under optimal conditions. The only other choice is cable that offers service up to 150Mbps. That's competition!

    I'm not out in BFE, either. I'm a ~50k population suburb in a large metro area.

    I don't know how the ILEC is even keeping the lights on at this point. Literally everyone I know has cable. Every third or fourth wireline pedestal is wrapped in a contractor bag with duct tape around it. It's sad, really.

  6. consumer choice options by swell · · Score: 5, Interesting

    I recently lived in a brand new complex that was designed without traditional POTS, plain old telephone system wiring. That was because the local cable company arranged an exclusive contract with the property owner- they would provide TV, internet and telephone for all the residents. It was very difficult for any competitor to reach that building.

    Now I live in an older building with POTS & cable wiring. I had cable for internet, but they raised the price beyond reason. The telephone company had nothing competitive. Fortunately Google (a subsidiary called WebPass) came to the rescue. They offer a high speed internet connection at a reasonable price; less than $600/year for nearly 100Mbps. Fortunately my property manager invited this service to our building.

    This service utilizes the old POTS wiring already available to give ethernet connections to each unit while still allowing telephone service for those who want it. They install a microwave antenna on the roof to connect to a source for internet backbone.

    For several months I've had excellent service from WebPass. They are in limited cities now but expanding. This microwave connection seems practical, affordable, and for many people the only alternative to the criminal oligopolies commonly available. If the Google/WebPass service isn't available, ask for it or find or create your own alternative.

    The concept of microwave transmission of internet across rooftops is viable in most cities. It will offer alternatives to millions of users.

    --
    ...omphaloskepsis often...
    1. Re:consumer choice options by glomph · · Score: 2

      The only problem with microwave links is that if the area is subject to frequent rain, you will have frequent brown-outs due to signal fade. I know people in Seattle on normally-great microwave-linked apartment connectivity which goes to shit in bad weather.

    2. Re:consumer choice options by FrankHaynes · · Score: 1

      That CAN be a problem, but it depends on a great many things: frequency used, antenna gain, path loss, to name a few. A good design should not suffer frequent outages, but these days everybody is a data head and knows very little to nothing about r.f. propagation.

      I suspect the bigger impediment would be the rules and regulations and outright underhanded shenanigans by the incumbent stakeholders to keep out new competition.

      --
      slashdot: A failed experiment.
    3. Re:consumer choice options by swell · · Score: 2

      Good point. I'm in San Diego (where it never rains), no problem for the last 6 months despite an unusually rainy winter. My brother in Seattle experiences a lot of rain, but it's mostly light drizzle- is that a problem? I ask because I really think this is a generally viable solution to the oligopoly that could be helpful to many people. Thanks.

      --
      ...omphaloskepsis often...
    4. Re:consumer choice options by Anonymous Coward · · Score: 0

      > microwave antenna on the roof

      Yuck. Had that in two places. While the 56k POTS line I have now has 125 ms of latency, microwave was much worse. Typically it was 300 or more ms with peaks of up to over a full 1,000 ms when it rained. Since I live in Seattle, that was pretty often.

    5. Re:consumer choice options by Anonymous Coward · · Score: 0

      My understanding (also living in the Northwest, and having had microwave Internet in the past) is that one of the biggest issues with rain is if there are a lot of trees between you and the source antenna. They're fine in dry weather, but when it rains, the leaves get wet and then contribute to the signal interference as a large, somewhat solid, wavy obstacle.

    6. Re:consumer choice options by drinkypoo · · Score: 1

      It's true. I have a WiFi link from a local WISP and it used to go through some trees and it was just as you describe. They put up another tower, though, and I have better LoS to that with no trees in the way.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    7. Re:consumer choice options by Anonymous Coward · · Score: 0

      This service utilizes the old POTS wiring already available to give ethernet connections to each unit while still allowing telephone service for those who want it. They install a microwave antenna on the roof to connect to a source for internet backbone.

      This is a reasonable idea, but we should comprehend the magnitude of the policy failure. This is how Internet is done in sub-Saharan Africa.

    8. Re:consumer choice options by Agripa · · Score: 1

      > microwave antenna on the roof

      Yuck. Had that in two places. While the 56k POTS line I have now has 125 ms of latency, microwave was much worse. Typically it was 300 or more ms with peaks of up to over a full 1,000 ms when it rained. Since I live in Seattle, that was pretty often.

      The 125 milliseconds of latency with a voice band POTs connection is from the echo cancellation filters; they have to be that long to remove the longest duration echos.

      The microwave link should be much better so whatever they were doing was just broken.

  7. Just remember... by Gravis+Zero · · Score: 0

    he'll take any suggestion that he isn't being told to ignore. ;)

    --
    Anons need not reply. Questions end with a question mark.
  8. Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

    which will increase profits. This is why he is doing this. Republicans are all about competition which hurts consumers so much.

    1. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      This. Republicans love Ayne Rand-style competition. Even if it provides cheaper service and faster connections, it still isn't right.

    2. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      Competition hurts consumers. We need single-source suppliers that are subsidized just like with healthcare.

    3. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      Trump hurting their profits will stop upgrades. Thinking people want more ISP profits.

    4. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      This. While rump is helping the people in the short term, it hurts ISPs so thinking people would never do this.

    5. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      This. Republicans love competing for business which is harmful.

    6. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      And that hurts the people.

    7. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      Agreed. We need government handouts to cable companies to encourage them to offer service.

    8. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      Reducing profits will kill upgrades.

    9. Re: Trump wants to hurt ISP profits... by Anonymous Coward · · Score: 0

      By hurting corporations, he will discourage investments. Obama was correct to give them money.

  9. OH NOES FREEMARKET WAHT BOUT MUH NETNUUTRALITY by Anonymous Coward · · Score: 0

    Of course /. and arstechnickel are going to try and downplay this because it goes against their narrative. "There's not a lefty in office so everything the FCC does must be bad" Already the comments are flooding with whines about not meeting some arbitrary high standard or how apartments don't count. You idiots get nothing right. Get bent.

  10. Meaningless by markdavis · · Score: 1

    >"FCC Seeks To Increase ISP Competition In Apartment Buildings"

    Seriously? As if most of us even have a choice OUTSIDE apartment buildings? I don't know about you, but here there is only one choice for ISP, and it is the cable company. It doesn't matter what kind of building in which we reside.

    How about increasing ISP competition, period.

    1. Re:Meaningless by Orgasmatron · · Score: 1

      Monopolies inside an apartment building are the result of a franchise agreement between the cable company and the building owner.

      Monopolies outside an apartment building are the result of a franchise agreement between the cable company and the municipal government.

      Whatever tool they come up with for the first problem should apply equally well to the second.

      --
      See that "Preview" button?
    2. Re:Meaningless by Narcocide · · Score: 1

      It's already illegal. In reality though, you'd be shocked how many landlords blatantly defy the law on this one - and get away with it.

  11. Ajit "Competition is Good" Pai by Anonymous Coward · · Score: 0

    Can we have two FCC chairmen, so I can pick the one I want? And direct my taxes to that one?

  12. FCC is not 100% evil then? by mapkinase · · Score: 1

    So, does thia mean that current FCC is not 100% evil.

    --
    I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
  13. They exist for entirely different reasons by Anonymous Coward · · Score: 0

    Utility monopolies exist for the practical reason that you can't have multiple, competing companies laying down infrastructure in cities. Before this type of restriction was in place you had multiple electric companies (e.g. Edison Electric and Westinghouse) running overlapping, and often completely incompatible, infrastructure, all over the place. Downtown Manhattan and other places became a rats nest of cabling. It was a safety, planning and aesthetic problem (Edison's DC current cables were particularly dangerous).
    Fiber has changed the dynamics of this a little bit for telecoms because having four different telecoms in the same neighborhood no longer means four 2-3 inch cables being run all over the place but the limitation still exists for power, water, gas, etc. When you buy "green" energy in the US (and probably other places), the power is still from the lower power utility. They're just trying to source it from the green power provider (because of the nature of electricity production/distribution it is impossible to source power from 100% green power unless you are on an isolated grid... anyone who tells you differently is lying or doesn't know what they're talking about).

  14. This is really easy to solve. by tlambert · · Score: 1

    This is really easy to solve.

    Have the city/county own the links, and have the ISP's offer service over the municipal infrastructure.

    You want email? Talk to an ISP. You want television? Talk to an ISP. You want VOIP service? Talk to an ISP.

    All ISP's have equal access to the market over the common infrastructure.

    I should be able to live in Alaska, get my phone service from Utah, get my email from Virginia, and get my television channels from 6 or 7 places, unbundled.

  15. My really easy solution. by Narcocide · · Score: 1

    Just drive around LA and issue a hefty fine to any apartment building without any DirecTV dishes on the roof.

  16. You can't be this stupid. Can you? by Anonymous Coward · · Score: 0

    You can't be this stupid. Can you?

    Bandwidth is not unlimited everywhere.

    I could get behind a "last mile" access rights law, however, with mandatory slots for at least 20 competitors.
    The 100+ yr old telecom wiring leases need to stop. Getting repaid over and over for something put in the ground 20 yrs ago is vile.

    1. Re:You can't be this stupid. Can you? by tlambert · · Score: 1

      Bandwidth is not unlimited everywhere.

      I could get behind a "last mile" access rights law, however, with mandatory slots for at least 20 competitors.

      Bandwidth is not limited in the way it is charged, either.

      Specifically, an idle router takes no more electricity than a router operating at it's maximum rated capacity. Yet we get charged more for more use, even when there is idle capacity, rather than the capacity being fairly apportioned between subscribers.

      This is primarily due to "oversubscription", which is a code word for "we're selling more bandwidth than we provide, because we expect you to consume content, rather than producing it".

      This idiocy is "enforced" by charging for bandwidth above a certain utilization as if it were gold. In other words: it's a bad model propped up by an economic model which benefits the people who want to be paid for packets, rather than being paid for having a "dumb pipe" that they provide. They do not want to be commoditized down to "dumb pipe" status.

      What my suggestion does is commoditize bandwidth from the CISCO unit(s) in the basement of the apartment complex utility room into "dumb pipe" status. IF it's done city-wide, then everything's a "dumb pipe".

      This is precisely the situation which ISPs want to avoid, because it means they are also "dumb pipes", and thus a commodity.

      They have been shitting themselves ever since we moved from circuit-switched communications hardware to packet switched hardware, trying to maintain the "long distance metered rate teat" that they had been feeding off of since the early days of telecom.

      The 100+ yr old telecom wiring leases need to stop. Getting repaid over and over for something put in the ground 20 yrs ago is vile.

      Which is precisely what I suggested, only somehow you aren't stupid, but choose to call me stupid. City owns the infrastructure, ISP owns the packets. Customer gets to pick who does or does not send them packets.

      No matter who sends the packets: the "dumb pipes" are there, and the "dumb pipe" diameter remains the same -- and thus capacity remains the same. You want bigger "dumb pipes"? Pay more taxes.

  17. Competition is doable but... by grumling · · Score: 1

    I used to work for a cable system in a competitive area. The two companies always tried to get an exclusive deal with the buildings, but through various court orders and lawsuits a compromise was reached: The drop coax going from the equipment demarcation box was owned by the building owner. A competitor had to "release" the line within 48 hours of getting an order from the other. The actual demarc was 1 foot outside of the box in the case of single family homes.

    Where it got tricky was when there was a bad line, which was often in some of the older buildings that weren't wired for high speed internet and digital cable. Because the landlord owned the coax it became their responsibility to repair it. Of course they'd either tell the tech to "just repair it" expecting the company to eat the cost of the coax repair with the very real possibility of the renter switching service at any time. Or the landlord would get his maintenance guy to "certify" the cable as good because it worked for whatever test equipment (usually just a line toner) he had.

    If a cable company comes in and rewires a building they almost always want exclusive use of the internal wiring because it's not cheap or easy to rewire buildings. Building owners aren't broadband cable engineers, they really don't care nor do they want to deal with it. So they sign the exclusive deals, renters are stuck with whatever service they get and that's that.

    The real solution is to get 5G up and running. Then the inside wiring won't be a problem, unless you live in one of those reenforced concrete bunkers.

    --
    "Well, good luck finding a judge that doesn't run a bestiality site."
    1. Re:Competition is doable but... by tepples · · Score: 1

      The real solution is to get 5G up and running.

      What price per gigabyte or per device-month should we expect?

  18. How about ... by modmans2ndcoming · · Score: 1

    How about just seeking increased ISP competition period? It was great back in the day when the tel-cos had to lease access to their lines to ISPs...you had real completion in DSL....then Cable comes in and wham....everyone dies a slow death and DSL is thrown to the side due to technological limitations.

    1. Re:How about ... by thule · · Score: 1

      In an interview Pai said that went to figure out way to increase competition everywhere. This building issue is just one aspect of what he wants to take on. He also noted that the FCC can only do so much at the municipal level.

    2. Re:How about ... by modmans2ndcoming · · Score: 1

      That is why regulation is needed. Maybe they incentivize the local monopolies by being very controlling if there are 3 or less ISP competitors in an area and the regulations are lifted for any network owner that leases at cost their network capacity to other ISPs or for areas with at least 4 network operators. That would provide an incentive for companies to not use protectionist nonsense at the municipality level.

  19. Important in NYC by Anonymous Coward · · Score: 0

    This may seem silly to most readers, but it's important in NYC. The cable companies are:

      Time Warner
      RCN
      CableVision

    None of them cover the entire city, but most homes are passed by two of them, usually Time Warner and one of the other two. Time Warner signs deals with landlords and won't provide service without one. If you call them and ask for service without a deal in place, they will read some confusing script that says "let us talk to your landlord," at which time they make a deal. There would be no point for them to cover a building without a deal because every tenant would choose a competitor: their price sheet is inflated by making these deals. The other two companies don't seem to sign deals with landlords, and don't seem to overlap each other.

    tl;dr we almost have competition among cable companies in NYC, except not really because they divide up the territory house-by-house to prevent actual consumer choice and instead compete for houses. Time Warner gets the ones where the landlord has a traditional abusive money-squeezing relationship with the tenants, while the other two get home owners and sanely-managed coops.

  20. https://www.youtube.com/watch?v=w6ZkwnvbYTE by Anonymous Coward · · Score: 0

    https://www.youtube.com/watch?v=A1v4BUO7GJQ&lc=z13oeddxbnvif1mn423dez2gztrgitfrq04

  21. You know what would be good for aparment-dwellers? by Anonymous Coward · · Score: 0

    Net Neutrality

    (Ok, other stuff too.)

  22. Bulk Deals by Anonymous Coward · · Score: 0

    I arrange bulk internet deals for MTD/MUD, it's a good deal for tenants to get low cost internet. $50 for 100/25 Mbps fiber (no caps), 30 TV channels. Owner get revenue sharing on any upgrades.

    Don't have option of providers, but a good smaller botique ISP can provide decent service.

  23. Overreach by emaname · · Score: 1

    Clearly overreach by the FCC. Let the invisible hand of the free market manage this. Ajit Pai should know better.

    I suppose I should enclose that statement with a sarcasm tag.

    --
    An effective "democracy" creates the illusion the people have a say in their government.
  24. Useless by Anonymous Coward · · Score: 0

    Someone needs to seek to have at least one internet provider in the 60% of the U.S. geography which is stuck with dial-up and satellite.