The FCC have ruled on an ongoing investigation into exclusive telephone agreements in apartment buildings, judging that the existing practise of landlords entering into limiting contracts with individual telcos is contrary to the consumer’s best interest and, as such, is being banned.  Exclusivity contracts had been seen as a money spinner for landlords and developers, promising clients to the phone companies for a guaranteed commission; the practise has prevented many tenants from taking advantage of price matching between companies, as well as stopped them from signing up to bundled voice, video and internet packages.

“[Exclusivity agreements] hurt consumers and harm competition, with little evidence of countervailing benefits” FCC statement

While the carriers are being sanguine about the judgement, with the major players supporting the FCC’s action, various housing and real estate groups are accusing the commission of undue meddling and “overextending its regulatory reach”.  They point to the lack of statistics regarding how common exclusivity agreements are, while at the same time demanding that existing contracts be honoured.

Frankly it sounds like sour grapes, though I suppose if I was facing the high interest rates and Tennant uncertainty that many landlords are dealing with, I’d be miserable about the loss of a guaranteed income from Verizon, AT&T or one of their rivals.  The FCC claim its rulings lead to a level playing field for consumers and telcos alike.

[via HotCellularPhone]