Landlords of apartment and office buildings often have exclusive contracts with a single phone and high-speed data provider, such as a Baby Bell or other longtime provider. Additional, often smaller, carriers have been fighting to gain access to these buildings. The FCC is expected to rule on the matter any day now, but its very jurisdiction has been questioned by real estate groups and legal experts. While ALTS predicts 15,140 multi-tenant buildings opened access to multiple providers last year, up from 6,675 the year before, the association also estimates that less than 5 percent of such buildings are open.
Landlords hold all the cards in negotiations, the association argues.
The issue of access to consumers has made this a front-burner issue for many organizations. Smaller companies competing in this market include Allied Riser Communications , Broadband Office Communications and Urban Media . Broadband Office in particular has taken heat from more senior competitive providers because it has occasionally agreed to give a landlord a percentage of revenues in exchange for access. Teligent and other large providers argue that letting each landlord with an antenna on his or her roof to share in revenues the company earned with its services would quickly dilute any potential profit. They argue Broadband Office and others agreeing to revenue sharing are making it more difficult to negotiate with landlords.