Multi Housing Technology Advisor

By Larry Kessler

Victory For Multi Housing Property Owners

The latest victory for multi housing property owners came in October when the Federal Communications Commission (FCC) issued a press release stating its positions on property owner rights versus the rights of service providers.

Broadband Internet

Today, many property owners are attempting to enter service agreements with broadband, high-speed internet service providers such as Darwin Networks, REflex, Cais and BroadbandNow.  Unfortunately, both owners and service providers are finding out that gaining cooperation of the local Bell Company for accessing the inside telephone wiring is a nightmarish experience.  The simple fact is that local telephone companies are presenting significant hurdles in hopes to starve out their competition for Internet customers.

To resolve this conflict, the FCC is now providing more clarity and definition to the procedure under which the property owner can gain control of the inside telephone wiring, allowing him to select the high-speed Internet service provider of his choice.

Reader's Digest Version

The FCC has now established procedures to reduce the property owner's dependence on the local telephone company for gaining access to the inside telephone wiring.  To date, the point at which the telephone company's ownership of the wiring ends on the property and where the property owner's ownership begins has been controlled by the telephone company.

Unknown to many property owners, the telephone company's ownership typically extends all the way into each apartment unit.  The difficulty with this is that private broadband service providers, such as those listed above, cannot attach the equipment necessary to facilitate high speed Internet service when the telephone company claims ownership of the wiring up to and including each unit.  This forces the provider to either deploy wireless technology or rewire the property, both of which are costly and can make providing the service an unprofitable venture.

Fortunately, the new procedures dictated by the FCC more clearly define that local telephone companies must disclose the current point of their ownership, and that they must move this point at the owner's request.  At the same time, the FCC is requiring that telephone companies provide property owners and their service providers with access to existing conduit and rights-of-way located on the property.

DBS Satellite Dishes

Essentially, the FCC is reconfirming its previous position that residents can install satellite dishes and that owners can only prevent them from doing so in accordance with the previous rules.  However, the FCC has added that the satellite dishes can be installed for the purpose of both receiving and transmitting.  Translated, this means residents can now install satellite dishes for the purpose of watching television or surfing the Internet.  Owners should expect the satellite Internet industry (i.e., www.directpc.com) to be heavily marketing their product soon, particularly with the holiday season here.

But the battle between property owners and the FCC is not over on the satellite dish issue.  On October 16, representatives of the real estate industry filed a brief in the U.S. Court of Appeals for the District of Columbia [Petition for Review of FCC order 98-1610; the FCC ruling permitting satellite dish installation by residents].  The industry is challenging that the FCC does not have the authority to force property owners into allowing residents to install satellite dishes.  Most experts remain confident that the FCC ruling will be overturned.

For questions or comments regarding this filing or the overall efforts being taken on behalf of the multi housing industry, contact Jim Arbury of the National Multi Housing Council at jarbury@nmhc.org, or Matthew Ames of Miller & Van Eaton at mames@millervaneaton.com.  The firm of Miller and Van Eaton is legal counsel for the Real Access Alliance, to which all leading housing trade organizations have joined to challenge FCC rulings regarding forced access.

Exclusive Contracts

Of interest to both property owners and competitive service providers is the FCC's decision to continue allowing multi housing property owners the right to enter into exclusive service agreements.  What the FCC appears to have done is continue prohibiting commercial building owners from entering into exclusive agreements with telecommunication service providers, but not interfere with the rights of residential property owners to continue entering into such agreements.

However, potentially not in favor of property owners are comments sought by the FCC for a future Notice of Proposed Rulemaking.  Two important issues for which comments are being sought; 1) whether today's prohibition on exclusive access contracts in commercial buildings should be extended to residential buildings, and 2) whether than FCC should prevent service providers from entering into contracts that grant them preferences other than exclusive access, such as exclusive marketing or revenue sharing.

The Multi Housing Technology Advisor is Published by Multihousing.Com E-Press.  Copyright 1998-00.

Kessler is CEO of InteliCable Group, a firm which assists multi housing property owners, developers and management firms in researching, developing and negotiating digital video and broadband infrastructure installation, services and contracts.  He may be reached with questions and comments via e-mail at lkessler@intelicable.com.