ISPs seek compensation to Keep Americans Connected

The nation’s internet service providers, both for fixed and mobile services, are beginning to see the economic impacts from their pledge to not disconnect customers during the COVID-19 crisis. US Telecom CEO Jonathan Spalter told the Senate Commerce Committee, “As the first billing cycle since the outbreak of COVID-19 comes to an end, many are starting to see that doing the right thing (maintaining service, in some cases without payment) is coming at a substantial cost.” He applauded the move by a bipartisan group of senators who’ve introduced a bill that would appropriate $2 billion for small broadband providers to recompensate them for providing free broadband services. The bill is endorsed by NTCA—the Rural Broadband Association, WTA – Advocates for Rural Broadband and the Wireless Internet Service Providers Association (WISPA).

The big mobile operators haven't asked for any kind of recompensation due to their Keep Americans Connected pledge. But they have reported a spike in bad debt. Verizon CEO Hans Vestberg said that about 2.5% of Verizon’s customers, or about 800,000, were unable to pay their bill because of financial problems they were experiencing related to COVID-19. AT&T’s CFO John Stephens said, “As a result of COVID, we anticipate an increase in bad debt expense across the various businesses, and accordingly, have recorded a $250 million incremental reserve in anticipation of that.”