The Federal Communications Commission (FCC) recently released a Report and Order and Declaratory Ruling in the Matter of Improving Competitive Broadband Access to Multiple Tenant Environments. The report bans a number of items relative to marketing agreements and wire usage in apartment communities and other multiple tenant environments.
- Beginning April 27, 2022 – no new contracts may be entered with graduated revenue share arrangements.
- After September 26, 2022 – no graduated revenue share payments can be made under existing contracts that are in effect as of 4/27/22. Revenue share paid through 9/26/22 should be okay.
Many RealtyCom clients have these types of graduated scale or sliding scale revenue share agreements in place today. The FCC did not ban revenue share in general or other forms of owner compensation, nor against marketing agreements in general. However, in order to continue to receive revenue payments those agreements will need to be amended and changed from a sliding scale to a flat revenue-sharing scale.
In addition to the ban on sliding scale revenue share, the FCC also ruled that providers entering into exclusive marketing agreements will have to disclose the existence of that arrangement with the residents, their potential customers. The FCC also ruled against inside wiring sale and leaseback arrangements, and revenue share agreements that are exclusive and preclude other providers from offering revenue share.
RealtyCom has decades of experience negotiating with providers and completing contractual due diligence for our clients. We can help owners understand and navigate the impact of these rulings. Our goal is to negotiate a fair and equitable solution with providers while helping you comply with the new rules.
If you’d like to talk further about how this FCC ruling impacts your properties or about anything else relative to telecom and technology initiatives you may have for your properties, then let’s start a conversation.
RealtyCom Partners, LLC does not provide legal advice. If you would like a referral to a knowledgeable telecom attorney, please email Rush Blakely at email@example.com.
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