FCC Bans Exclusive Triple-Play Deals in Apartments

March 24, 2008

In a recent decision designed to increase competition in voice, video, and broadband services for consumers, the FCC has "banned carriers from entering into exclusive contracts to provide telecommunications services in residential apartment buildings,"as stated in an FCC news release.

Reasons Behind FCC Ban

In a statement posted on the www.ftc.gov website, the FCC states that these contracts - specifically exclusive “triple-play” offerings from cable companies which have negotiated deals with multi-tenant residential apartment buildings - block consumer access and harm competition for voice, video, and broadband services. By banning the contracts, the FCC has opened the door for telecommunication companies to vie for apartment-dwelling customers.

FCC History of Banning Exclusive Contracts

According to the FCC, this is not the first time the Commission has taken action to prevent exclusivity when it comes to competition for communications services to apartment buildings. In 2007, the FCC banned exclusive deals for video services in multi-tenant buildings and in 2000, the Commission blocked exclusive contracts between telecommunication providers and apartments.

Cable Company Reaction to Ban

Although the National Cable & Telecommunications Association (NCTA) - which is the cable industry’s foremost lobbying entity - has declined comment on the recent FCC ban, it has previously maintained that the FCC does not have the authority to abolish contracts which are already in place between apartment buildings and cable operators.

The NCTA’s position has been that cable operators would not be able to recover the investments they have made in apartment building infrastructure in order to provide these services.