The obvious question is: Why would an MDU property owner want to make a commitment to pay for the cable and broadband services used by residents? First, the owner may not be willing to accept the legal obligation to pay for services to residents through a stay of several years. Indeed, the decision to enter into a mass agreement has financial value only if the added value of providing cable and/or broadband services to local residents exceeds the cost of paying for the mass service. The FCC addressed this concern regarding the provision of wiring services in a number of contracts and notices issued between mid-1990 and the late 1990s. Determining the application of FCC procedures in certain circumstances and how they are applied depends on a number of factors, including, but not limited to, the service agreement between the parties; the cable configuration of each MDU (i.e. passing or non-passing wiring);6, the disputed segment of the internal wiring (i.e. the wiring of the house against the wiring of the house); and if the owner of the MDU terminates the historic supplier`s access to the entire building as opposed to a certain number of units. Often, before the turnover, the developer of the housing association will enter into a bulk service agreement with a service provider. This usually occurs in such a way that the developer can offer the units for sale with the additional incentive to come already with cable and Internet services. The Florida Condominium Act allows the developer to enter into such agreements on behalf of the association, as long as the agreement is fair and reasonable. Fla. Stat. The costs of mass benefits are included in the association`s annual budget and are paid by each unit owner by regular investment payments. Another relevant consideration is technology.
As multi-channel video programming services move from traditional cable systems to online platforms, cable television is rapidly turning into an anachronism. The question is not whether the traditional cable TV model has gone out, but when. For this reason, it is not wise for an MDU owner to agree to pay relatively long-term for cable mass television. Similarly, a choice between broadband service providers is less important to consumers (or should be) than having a choice between video providers. After all, Internet services are basically just connectivity – bandwidth. As long as the connection to the public internet is fast and the service is reliable, no matter what company it provides; Broadband is a generic good. Therefore, a longer-term mass contract for broadband services – because of the rebate – can be useful if a mass contract for cable television does not do so. The equipment and wiring of an MDU for the provision of wiring and Internet services are an expensive business, a business that MDUs owners do not want to pay more than once. A common concern for MDUs owners when reviewing a service agreement with a cable provider or internet service provider is whether, if the contract is terminated, it is possible for an alternative service provider to use the equipment and cables installed by the existing provider to continue to provide services to MDU residents under minimal inconvenience and cost conditions.