FCC should reconsider proposal to ban bulk billing for broadband services

By Denise Diaz

In an era where digital connectivity has become synonymous with opportunity, the Biden Administration has undeniably taken historic strides in delivering essential internet access to underserved communities. We’ve seen that here in California, where billions in federal funding will be leveraged to expand broadband infrastructure and deliver connections to low-income Californians through the Affordable Connectivity Program (ACP).

However, a recent proposal to ban bulk billing for broadband services threatens to undermine this progress, particularly in the realm of affordable housing, where partnerships between providers and local governments and housing authorities can be pivotal in bridging the digital divide. To make matters worse, this ban would coincide with the likely expiration of the ACP - severely limiting our options in terms of broadband affordability initiatives for marginalized communities.

The FCC included this proposal as a part of the much-needed, broader Administration effort to eliminate junk fees for consumers. This broader effort is going to deliver cost saving results for countless Americans, but the bulk billing inclusion as a part of these other efforts is head scratching given that the FCC itself during the Obama Administration found that “the benefits to consumers of bulk billing arrangements outweigh their harms” and benefit customers through “reduced rates and operational efficiencies.”

Through my work at the Southeast Community Development Corporation, I’ve been privileged to be able to take part in local efforts to bridge the digital divide. It’s because of this work that I know how sizable a role affordability plays in preventing underserved communities from getting online. The ACP has made a tremendous difference, supporting nearly 3 million California households with the connection needed for today’s world. Despite President Biden’s best efforts to extend the program’s funding, soon, it will likely unfortunately expire - meaning millions will see their broadband bills go up.

Preserving bulk billing will allow local governments and affordable housing entities to negotiate reduced prices or even free broadband services for tenants. By pooling subscribers together, bulk billing arrangements enable providers to offer discounted rates, making internet access attainable for those who might otherwise struggle to afford it. Without this cost-saving mechanism, the burden of broadband expenses could fall disproportionately on low-income households.

We must remember that any widening of the digital divide will bleed into the widening of other inequities. It will mean more students lack the online learning resources needed for research, school assignments and online learning materials. It will mean those trying to seek a job or who rely on connectivity to complement their employment will now see that access cut off, narrowing their economic opportunities. The list goes on and on, because connectivity is now intertwined with everything.

Given the ways in which this proposal could widen our nation’s digital divide, I urge the FCC to reconsider this proposal. The agency and the Biden Administration have done incredible work on digital equity, this measure would be at odds with their current track record - banning bulk billing would do drastically more harm than good.

Denise Diaz served on the South Gate City Council from 2017 to 2022. She was appointed to the Los Angeles County Commission for Women in 2023, which advises the Board of Supervisors on important issues facing women, and serves as a Boardmember of the Southeast Community Development Corporation.