The Federal Communications Commission has released a guide to help smaller MVPDs comply with its new rules on boosting access to broadband competition in multiple tenant environments (MTEs), such as apartments and condos.

In February, the FCC voted to prohibit providers and dwelling owners (park owners in the case of mobile homes) from striking exclusive revenue-sharing agreements and require providers to let tenants know “in plain language” if they have exclusive marketing arrangements with building owners — though importantly it does not prohibit such arrangements.

Now, the commission has released a Small Entity Compliance Guide to facilitate compliance with the rules for providers who may not have an army of lawyers to ensure that is the case.

The guide is not gospel, however, per this from the commission: “[T]he Commission retains the discretion to adopt case-by-case approaches, where appropriate, that may differ from this Guide.”

Among the pieces of compliance advice are that all exclusive marketing information — in print or online — must disclose that while the provider has the right to exclusive marketing materials, that does not mean that it is the only one who can provide such service and that alternate service providers may, indeed, be available. ▪️ 

The Federal Communications Commission is proposing to close what it says are loopholes that have allowed broadband providers to evade rules that are supposed to allow tenants in Multi-Tenant Environments (MTEs) — such as apartments, condos or mobile homes — to have choice among internet services.

The agency in September asked for a new round of comments on its proceeding. FCC chairwoman Jessica Rosenworcel Friday (Jan. 21) circulated a Report and Order and Declaratory Ruling to the other commissioners that would take a number of steps in that direction.

Specifically, the Report and Order would:

1) Prohibit providers and dwelling owners (park owners in the case of mobile homes) from striking exclusive revenue-sharing agreements;

2) Requite providers to let tenants know “in plain language” if they have exclusive marketing arrangements with building owners — though importantly it does not prohibit such arrangements.

Also: FCC Seeks Input on Broadband and MTEs

The Declaratory Ruling would “clarify” that current rules prohibit sale or leaseback arrangements that have the effect of blocking alternate providers.

“With more than one-third of the U.S. population living in apartments, mobile home parks, condominiums and public housing, it’s time to crack down on practices that lock out broadband competition and consumer choice,” she said. “Consumers deserve access to a choice of providers in their buildings.  I look forward to having my colleagues join me in lifting the obstacles to competitive choice for broadband for the millions of tenants across the nation.”

It's not a lock, but the fact that she has circulated it and promoted that circulation suggests she has the votes, including at least one Republican vote, to pass it.

"The proposal by Chairwoman Jessica Rosenworcel to expand internet options for apartment dwellers is welcome news," said Jonathan Schwantes, senior policy counsel for Consumer Reports. "Despite exclusive arrangements between ISPs and landlords being banned for years, it's time to finally put an end to practices and close loopholes that stifle broadband competition and consumer choice, especially for those most in need. We know that when consumers have more choices for internet service, they enjoy lower prices." ■

The Federal Communications Commission has granted cable operators' request for more time to comment on competition, consumer prices and choice in broadband service to multi-tenant environments (MTEs) — apartment buildings, condos and offices.

Under acting chair Jessica Rosenworcel, the FCC back in September asked for a new round of comments on its proceeding.

NCTA had asked for a 30-day extension until Dec. 6.

The FCC‘s Wireline Competition Bureau said that while it was in the public interest to grant an extension so that the parties had some more time to address the complex issues, it was only making it 15 days — until Nov. 19 — because 30 days would “unduly delay Commission consideration of the important issues raised in this proceeding.”

The FCC's Wireline Competition Bureau, which issued the request for comment, said it wants commenters to focus particularly on three issues: 1) revenue sharing agreements and how they affect price, competition, and quality of service; 2) exclusive wiring deals, and whether those do or don't prevent new entrants or inhibit choice; and 3) whether marketing arrangements confuse people.

Cable operators have asked for a little more time to comment on competition, consumer prices and choice in broadband service to multi-tenant environments (MTEs) — apartment buildings, condos and offices.

NCTA–The Internet & Television Association filed the request this week, asking for a 30-day extension — until Dec. 6 — to file reply comments given the number of initial comments, more than 35, and their range of perspectives.

It said those comments raise issues regarding network configurations, various federal, state and local regulatory frameworks and “highly specific fact patterns.”

It said that the public interest would be served by allowing all parties “a meaningful opportunity to review and respond to these analyses in order to develop a complete record,” arguing that the current 15-day reply comment period was insufficient for the appropriate level of consideration given the goals of bridging the digital divide and enhancing deployments in MTEs.

The FCC back in September asked for a new round of comment on its proceeding.

The goal, said the FCC, was to “better understand how the Commission can promote increased competition, consumer choice, and lower prices for Americans living and working in these buildings.”

In announcing the new look, acting FCC chair Jessica Rosenworcel said it was time to examine how exclusive agreements can “lock out broadband competition and consumer choice.”

Cable broadband operators are telling the Federal Communications Commission that service to apartments and condos is in good shape, even as the agency considers whether any new regulation is needed to promote choice and improve service to those and other multiple tenant environments (MTEs).

In a meeting last week with staffers of the Wireline Competition Bureau, representatives of NCTA-The Internet & Television Association, and of NCTA members Cox Communications, Comcast and Charter Communications, said that the record in the proceeding demonstrated that "deployment, competition, and consumer choice" are "strong."

NCTA said the current prohibition on exclusive access agreements between cable and telecom providers and MTEs should be extended to all broadband providers.

But the trade group said the FCC should not prohibit exclusive wiring agreements, because those do not deny new entrants access to those apartments and condos. Rather, they are pro-competitive because they “help ensure that state-of-the-art wiring will be deployed in MTEs to the benefit of consumers.”

NCTA also put in a good word for bulk billing and exclusive marketing arrangements.

The FCC this week signaled it was taking “a fresh look at how exclusive agreements between carriers and building owners could lock out broadband competition and consumer choice,” as acting chair Jessica Rosenworcel put it.

FCC acting chair Jessica Rosenworcel is seeking input on one of her longtime issues--access to communications in multiple dwelling units.

The FCC has asked for a new round of comment on its proceeding looking into competition for broadband in apartments, condos and offices.

The goal, said the FCC, is to "better understand how the Commission can promote increased competition, consumer choice, and lower prices for Americans living and working in these buildings."

In announcing the new look, Rosenworcel said it was time to examine how exclusive agreements can "lock out broadband competition and consumer choice."

The FCC's Wireline Competition Bureau, which issued the request for comment, said it wants commenters to focus particularly on three issues: 1) revenue sharing agreements and how they affect price, competition, and quality of service; 2) exclusive wiring deals and whether those do or don't prevent new entrants or inhibit choice; and 3) whether marketing arrangements confuse people.

Dish Network is tackling what it hopes to be a lucrative market for multiple dwelling units (MDUs), offering apartment owners and developers a bulk managed WiFi and video product it calls Dish Fiber.

Dish Fiber, to be announced at the Apartmentalize convention in Denver Tuesday, will let apartment building owners package a managed WiFi service -- with speeds up to 1 gigabit per second -- and a bundle of video programming with packages ranging from a live streaming TV service with 24 channels selected by the property to fuller video offerings through its Dish's Hopper hardware.

The streaming TV service uses Smartbox, Dish's headend video distribution platform for commercial applications, via a single, centralized satellite dish and delivered over the property’s IP network. This configuration eliminates the need for individual satellite dishes and a separate coax network for video. 

Dish said residents can upgrade video service without a credit check, long-term commitment or a technician visit.

“The decision of choosing an internet and TV provider has historically been left to residents, which is more complicated and time-consuming for the consumer, and limits property owners’ revenue opportunity,” Dish TV group president Brian Neylon said in a press release. “By eliminating the common pain points often associated with competing providers, Dish Fiber provides residents with the services they want in one solution, while giving property owners more ways to monetize their highly-valued amenities.”

Dish Business director of product and business development Josh Rowe said the internet service is delivered through a DIA [Dedicated Internet Access] circuit to the property either through a direct fiber connection or a point-to-point millimeter wave connection where fiber is aggregated to a central location and delivered wirelessly. “Ultimately we own those connections into the building, so it is fully managed by Dish.”

Dish Business general manager of business development Nate Block said that in a recent interview 94% of residents ranked high-speed internet as the top apartment feature.

“It’s really moved beyond an amenity and is now a utility,” Block said. “No one has to wonder what kind of electricity or water they’ll have, they just expect when they move in, when they switch on a light or turn on the tap, it’s going to work, The same is not true of internet services generally.”

Dish wouldn’t disclose active customers for the service yet, but said it has tested the offering over the past year at several different property groups. 

“Our target market is anywhere in the U.S.,” Block said.

Dish said property owners can select which 24 channels they offer residents from a pool of channels that includes local broadcast stations.

“It gives the property owner some ability to customize that lineup to best meet their demographics,” Rowe said.

Property owners buy the internet service and can set the resale price to either maximize profit or use it as a differentiator and offer it for free.

“Frankly some of those properties have said this is a really valuable amenity and we may just provide it as such,” Block said. “[They’re] saying, ‘Our differentiating point in the market is that we provide this for free and that’s why somebody would rent from us or stay with us versus going to another property.’ It’s a lot about empowering these properties to manage that infrastructure that best fits with their business plans.” 

Fiber-based ISP GigaMonster, a specialist in providing gigabit-speed broadband services to the MDU market, announced that it has secured a $45 million investment from Post Road Group.

The Atlanta-based company also announced a merger with Portland, Ore. MDU specialist Fibersphere Communications.

Related: GigaMonster Takes a Bite Out of ISPs

“The $45 million in new capital provides us with the fuel to expand even faster through both future acquisitions and organic growth,” said Bill Dodd, chairman and CEO of GigaMonster, in a statement. “It also allows us to further enhance our standard-setting product offerings as the industry undergoes rapid change. The combination of GigaMonster and Fibersphere significantly increases our West Coast presence and was in perfect alignment with our vision to be the absolute best multifamily internet solution in the market.”

Launching in 2015, GigaMonster has acquired a significant market share in the multi-unit dwelling market, connecting building to its metro fiber rings—a mix of its own dark fiber and fiber acquired from other companies. It has now reached more than 25 markets nationwide with its Scary Fast 1-gig service.

The company did not release an financial specifics on the acquisition of fiber-to-the-home specialist Fibersphere, which was founded in 2002 and is also focused on the MDU market.

“Big cable consistently ranks at the bottom of the worst customer service industry in the country," said Craig Weaver, GigaMonster's customer experience director, in an interview with Multichannel News back in 2016. "As a result, being the best provider as compared to cable is not a worthy goal. We strive to deliver an experience on par with the likes of Amazon and Apple, where customers are the center of our universe and not a necessary evil as they are viewed by our competitors. We are clearly not your parents' Internet service, something we can all be grateful for."

For years, I’ve always felt that the large cable companies gave the multifamily market (also known as “MDU” for multi-dwelling units) a “B” effort. They would throw a few single-family marketing campaigns at this segment, maybe do a direct-mail drop or a door-hanger field push, and hope for the best. My favorite effort was dumping a box of new fresh brochures in the leasing office. But this is not a marketing plan.

A cable executive once told me, “look, we don’t really like this market. There is too much churn, too much CPE that goes missing, difficult property-manager procedures, inconvenient property access issues and high bad debt. What’s to like?”

In many cases, he was right. Historically, the MDU market — particularly apartments, which today represent almost one-third of U.S. housing — has very high churn. Many communities will churn more than 60% to 70% a year, meaning the average cable customer may only remain with their provider for 12 to 14 months. 

Additionally, upon “move-out,” set-top boxes go missing, and collecting past revenue can be difficult. Plus, unlike with single-family homes, the cable company has to send a technician to the leasing office (during their hours), hope that the leasing agent isn’t out showing an apartment, and complete the work order, sometimes dealing with old cable wiring and poor design.

It’s easy to see why the cable guys didn’t love this market. 

More of the history: In the late 1990s and early 2000s, the direct-broadcast satellite guys — DirecTV and Dish Network — were very effective at capturing a solid share of an MDU community. Even with specific FCC regulations on how to install an individual satellite dish, property managers would often look the other way to win a customer. How do you tell a $10,000-a-year renter that he or she can’t install a satellite dish, especially in a soft apartment market?

Then the telcos appeared in the mid-2000s, and added to the malaise. First, they offered ridiculous door fees (upfront incentives) to property owners to gain entry, and followed it up with crazy-cheap packages to incentivize customers to switch.

But today, the math on this market has clearly changed, and it’s time to look at the current context to appreciate why it is a good idea to drive up your MDU GPA.

First of all, the MDU market is growing faster than any other segment of the industry. It’s added more than 1 million new households through increased occupancies and new construction in the past couple of years. 

Secondly, the MDU market consists of a disproportionately large number of millennials, who consume broadband first and TV second. While they may subscribe to an OTT service or two, they no longer take expensive DVR packages with several HD boxes, alleviating expensive capex investment for a short-term customer. This consumer wants your fastest Internet.

It gets better. They won’t clog your call center with phone calls; they only order online. There are no truck rolls. Many of them will do the install themselves. And please don’t send them a paper bill (they are concerned about the environment). Be sure to let them sign up for auto pay.

These trends have led to a 90%-plus penetration rate for high-speed Internet, often at the highest-speed tiers.

Today, MDU property owners are considering offering broadband on a bulk basis (covering 100% of their units under one agreement). This reduces churn, bad debt and property-service issues. It’s exploding today in student housing, senior housing and condominium communities.

This has lead to renewed interest in the MDU market. It makes great sense given the recent trends. Here’s hoping you experience this trend too, and give it your “A” effort in the future.

Bryan J. Rader is CEO of Bandwidth Consulting LLC.

The Multimedia over Coax Alliance (MoCA), the group behind a speedy in-home networking platform, is looking to expand the reach of its core technology via the development of a new specification for the access market, with a specific focus on apartment buildings and other types of multiple dwelling units.

MoCA said the spec will be on the current MoCA 2.0 standard, which supports net data throughputs of 1 Gbps. The organization also has plans to integrate the new MoCA 2.5 spec, which will support speeds up to 2.5 Gbps and is backward-interoperable with MoCA 2.0.

The MoCA Access spec is expected to be available by mid-2017, according to the organization.

Among use cases for MoCA Access, the org said it will be a viable solution for operators driving fiber deep into the network or to the building (FTTB) and want to leverage existing wiring without sacrificing performance, and for ISPs building fiber-based networks that terminate the topical signal in the basement of a facility and use existing coax to deliver service to each unit or apartment. It also sees it taking hold with commercial integrators that design and install networks in restaurants, offices and any other buildings that have coax already installed.

MoCA believes the new Access spec will gain traction first in markets such as Europe and China, but also sees commercial opportunities in the hospitality and hotels segment arising in North America as well.

InCoax Networks AB of Sweden and Luster of China are among companies that are interested in the new access platform, MoCA noted.

“Our move into access applications is driven by operators worldwide who told us they need one Gbps actual throughputs with a long-term migration path and want to use the existing coax infrastructure,” Charles Cerino, president of MoCA, said in a statement. “Our performance and reliability attributes are proving to be a great solution in broadband applications as well as the home network backbone.” 

Charter Communications is still trying to wrap up its acquisitions of Time Warner Cable and Bright House Networks, but has managed to salt away another deal in the meantime.

The MSO announced Thursday that it has acquired Clearview Networks, a company that surveys, designs, installs and supports managed WiFi, video and cloud services for a variety of markets, including multiple dwelling units, student housing, hospitality venues, and government and education facilities.

Charter said it will continue to serve current Clearview customers while also integrating Clearview’s technology and expertise into Spectrum Community Solutions, a recently rebranded unit of Charter that provides customized, managed WiFi, video and voice services to MDUs via HFC and fiber networks.

“The acquisition of Clearview Networks puts Charter in a stronger position to accelerate the growth and deployment of Spectrum Community Solutions,” Adam Ray, vice president of direct sales and Spectrum Community Solutions, said in a statement. “By leveraging the industry knowledge of Clearview Networks to the benefit of Spectrum Community Solutions customers, Charter can extend its ability to provide superior communications solutions with unparalleled support and technical capabilities.”

Raleigh, N.C.-based Clearview was founded in 1994. 

Fiber-fed buildouts underway by AT&T and Google represent competitive threats to cable’s broadband business, but additional pressure is starting to be applied by a relatively new player that is setting its sights on multiple-dwelling units and apartment buildings in several U.S. markets.

That company, called GigaMonster, is in full attack mode, with a plan to expand in Denver, this spring, following up on its initial forays into cities such as Atlanta; Charlotte, N.C.; Houston and Dallas, Texas; Los Angeles; Memphis and Nashville, Tenn.; Phoenix, Ariz.; and San Francisco.

GigaMonster has been quietly constructing fiber networks in those cities, but the Denver launch announcement “is the coming-out party for our company,” Bill Dodd, GigaMonster’s CEO, said.

The company’s game plan is to connect MDUs to its metro fiber rings (via a mix of its own dark fiber and fiber acquired from others) with dedicated capacity starting at 10 Gigabits per second that can be ramped up from there.

“All we have to do is change the optics,” Dodd said. “We build a massive freeway of bandwidth to each community that we serve.”

Depending on the arrangement, GigaMonster inks retail deals in which it’s the exclusive provider or competing with an incumbent, while others are bulk deals in which GigaMonster sells service to the community partner and the service is built into the residents’ rent.

About 99% of GigaMonster’s deployments are in the multifamily high-rise and mid-rise category, with a small number of deployments in gated and private-land areas that aren’t saddled with rights-of-way issues. In Denver, Dodd said, GigaMonster has some deals at “various stages in negotiation.” Sky House Developments, which operates in several markets, has already signed on with GigaMonster for its Denver expansion. GigaMonster hasn’t set pricing for Denver yet, but in other markets its service ranges from 30 Megabits per second to 1 Gbps for $39 to $109 per month.

GigaMonster’s emergence will be met with some resistance from incumbent providers. Comcast, the primary MSO in Denver, announced last November that Xfinity Communities, its service tailored for MDUs launched in 2014, serves more than 1 million multi-family residences in 37 states.

That program delivers broadband, X1 video service, WiFi, and home security and automation services using fiber-to-the-building and fiber-to-the-unit architectures. Charter Communications, meanwhile, is applying more resources toward the MDU segment via its recently rebranded Spectrum Community Solutions service.

Early on, GigaMonster’s offering centers on broadband; Dodd said the company will soon announce some video partnerships, but did not elaborate on who might be involved.

In the meantime, GigaMonster has been focused on delivering a solid connection to over-the-top (OTT) services with “direct routing” to the servers of some of those providers.

“We have dozens of peering relationships; we’re working on caching relationships,” Dodd said.

Per the company’s Denver launch announcement, it has peering deals with Netflix, YouTube and Amazon.

Founded in 2013, San Francisco-based GigaMonster has about 200 employees.

Comcast said it now serves 1 million multi-family residents across 37 states a year after it launched Xfinity Communities, its service program tailored for apartment buildings, condos, healthcare facilities, and other multiple-dwelling units.

Comcast said the milestone comes amid a recent deal to support 25 properties from the Madison Apartment Group.

Under the program, Comcast sells, markets and maintains its “Advanced Communities Network” (via fiber-to-the-building and fiber-to-the-unit architectures) to deliver high-speed Internet service, its X1-powered video service, WiFi, and home security/automation offerings.

“The reality today is that residents take into consideration whether properties have access to the latest Internet, WiFi, TV, home automation and voice technologies when deciding where to live,” said Michael Slovin, VP, Xfinity Communities, in a statement. “As a result, many leading apartment owners and property managers have looked to us to provide the cutting-edge services they need to keep their residents happy and stay ahead of the competition.”

MSOs continue to apply more resources toward MDU-facing opportunities. Charter Communications, for example, just relaunched its effort under a new brand: “Spectrum Community Solutions” brand.

Expanding the reach of its new brand, Charter Communications has launched Spectrum Community Solutions, a unit that provides customized, managed WiFi, TV and voice services to residential apartments and other multi-dwelling units via on HFC or fiber.

With Spectrum Community Solutions, Charter is targeting several MDU-facing markets, including off-campus student housing, traditional apartments, senior living properties, and RV parks and marinas. 

The video side of the offering provides more than 200 HD channels, VOD and 170-plus live TV channels through the MSO's Spectrum TV App for iOS and Android mobile devices and the Roku platform. 

Charter has also launched a web site tied to the initiative, which has a dedicated customer and technical support operation.

“Spectrum Community Solutions integrates superior entertainment and communications products with dedicated, 24/7 customer and technical support, helping property owners attract and retain more residents and increase property value,” Jonathan Hargis, Charter’s EVP and chief marketing officer said, in a statement. 

AT&T said it is working with property owners, management groups and developers on deals that would clear the way for the telco to deploy its fiber-based “GigaPower” platform to apartments and other types of multiple-dwelling units (MDUs).

AT&T said the plan, which would expand the reach of its 1 Gbps-capable service, is to focus initially on areas where GigaPower is launched or will soon be launched: Atlanta; Chicago; Austin, Dallas, San Antonio, Fort Worth and Houston, Texas; Charlotte, Winston-Salem, Raleigh-Durham, and Greensboro, N.C.; Cupertino, Calif.; Jacksonville and Miami, Fla; Kansas City; Nashville, Tenn.; and St. Louis.

AT&T said its Connected Communities team is working with property owners and managers who are interested in bringing this service to their location, and has outlined three steps:

-Evaluation: Nominate property for GigaPower consideration at www.att.com/fiberproperties.

-Design: AT&T engineers will develop a fiber overbuild design of the legacy network to be approved by selected property stakeholders.

-Deploy: Once a deal is reached, AT&T will install the GigaPower network.

“We’re working with property owners, management groups, homeowner associations and developers to expand the availability of high-speed Internet over our AT&T GigaPower network,” Joni Arison, AT&T senior vice president of AT&T Emerging Markets, said in a statement. “This will make properties more attractive by offering Internet speeds up to 1 gigabit per second so residents can quickly connect to the cloud, telecommute more easily, video chat in real-time and stream the latest entertainment.”

“We’ve seen tremendous growth in apartments, condos and communities. There’s also more demand by residents to stay connected to the content that matters most,” added Scott DeGarmo, president and CEO of Broadband Communities.