In an order adopted today, the FCC banned carriers from entering into exclusive contracts to provide telecommunications services in residential apartment buildings, and prohibited enforcement of existing contracts that contain exclusivity provisions. The Commission found that these exclusive agreements between carriers and building owners hurt consumers and harm competition, with little evidence of countervailing benefits.

Moreover, exclusive contracts have blocked access by consumers to competitive and popular “triple-play” offerings of voice, video and broadband. Opening the door to competitive telecommunications services will help provide consumers with increased access to and choice of such providers.

The Commission’s action is consistent with its previous moves to expand competition for communications services in apartment buildings and other multiple tenant environments, or MTEs. In 2007, the Commission banned exclusive deals for video services in residential apartment buildings, and in 2000, the Commission prohibited exclusive contracts for telecommunications services in commercial MTEs. Today’s order provides regulatory parity between telecommunications and video service providers in the increasingly competitive market for bundled services.

Action by the Commission, March 19, 2007, by Report and Order (FCC 08-87). Chairman Martin, Commissioners Copps, Adelstein, Tate, and McDowell. Separate statements issued by Chairman Martin, Commissioners Copps, Adelstein, Tate, and McDowell.

Docket No.: 99-217

Wireline Competition Bureau Staff Contact: Jonathan Reel at 202-418-0637