New FCC Ruling and How it Could Affect Apartment Owners
Recently, the Federal Communication Commission (FCC) has announced a new ruling that is affecting many apartment owners around the country in regard to broadband/internet service. The ruling is called “FCC-22-12” and it seeks to improve competition for broadband/internet service for residents. Like many rulings, the intent is to bring positive change for the industry but can create potential difficult regulatory change for owners.
What does the ruling do?
This ruling affects how service providers can create deals with apartment owners, specifically within marketing agreements and revenue sharing agreements. It can affect new and existing contracts, even those inherited from a previous owner, and could make these existing contracts invalid.
What should I expect?
We have spoken to a handful of our service provider contacts. Their respective legal teams are sorting through potential changes to existing and future agreements to minimize problems and bring their agreements into compliance. Based on the FCC ruling, they have a 180-day window to bring all existing agreements into compliance and a 30-day window for new agreements.
During this process, we expect service providers to begin proposing amendments to existing agreements, potentially requesting additional terms and conditions, and possibly seeking increased term length.
What should I do?
We at Quext Connect are here to help navigate these changes over the next several months. We are confident our team is equipped to make these rulings a positive change for owners and residents. Our team is already familiar with the FCC-12-22 ruling and are ready to discuss if and how it could affect your business. In addition, we are happy to help negotiate new deals with service providers.
Please contact us today with any questions or concerns.