Can the FCC Fund the ACP?

A lot of folks have been pleading with the Federal Communications Commission to pick up the tab to continue the Affordable Connectivity Program (ACP). Folks are assuming that the FCC has the ability to take on the ACP program inside the Universal Service Fund. To make that work, the FCC would have to apply a monthly assessment against all broadband users—something the FCC should have the authority to do if it votes to reinstate Title II authority over broadband at its April meeting. FCC Chairwoman Jessica Rosenworcel told Congress that rolling the ACP into the USF could add $9.00 to monthly broadband and telephone bills. She also cited an internal FCC report that found that broadband bills could increase between $5.28 and $17.96 per month. I decided to kick the tires on the FCC’s estimates.

• The starting USF fee might have to be something like $7.50 per month, and there would have to be additional future increases to the fee until the ACP fund reached equilibrium. It’s not hard to envision the broadband fee growing significantly beyond $10 per month in a few years.
• If ACP is limited to landline (and fixed wireless) customers, the broadband fee would be a lot smaller ($2.54/month).
• It’s more challenging than you might think to assess a fee on every broadband customers. 
• It’s not hard to imagine the furor that would ensue if people drop their broadband connection as unaffordable because of the extra fee.