The death of the Affordable Connectivity Program could cut $4 billion out of telecom industry

According to a new report from the financial analysts at New Street Research, the US telecommunications industry stands to lose roughly $4 billion in market value–and $1.1 billion in revenues–if the Affordable Connectivity Program (ACP) ends. New Street said it based its latest calculation on its own survey of over 1,000 ACP recipients as well as data from Recon Analytics, the Federal Communications Commission and the Benton Institute for Broadband & Society, plus commentary from companies in the ACP program and historical data obtained during the pandemic. The firm found that 27 percent of ACP beneficiaries said in surveys that they will drop service if their bill increases by $30 (the amount of the ACP subsidy). However, the analysts estimated that around 1.2 million households may actually do so, considering survey responses often do not directly correlate with actual behaviors. The firm also estimated that around 1.6 million households will cut their telecommunications spending by $15 per month if the ACP ends.