FCC Bans the Use of Residential MTE Exclusivity Clauses


On March 21, 2008, the Federal Communications Commission (“FCC” or “Commission”) implemented new rules limiting the use of exclusive access clauses in contracts used by telecommunications service providers that provision service to customers in multiple tenant environments (“MTEs”). In this Report & Order, the FCC specifically mandated that carriers may not enter into contracts for the provision of telecommunications services with premises owners of residential apartment complexes, or similar dwellings, which restrict a consumer’s access to competing telecommunications providers. Moreover, carriers may not enforce existing telecommunications service exclusivity clauses in residential MTE service contracts.

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