Broadband Communities

Subsidies like the Affordable Connectivity Program (ACP) are unaffordable and set communities up for failure, according to Eric Sasaki, the manager of major programs at L.A. County’s internal services department. To address the digital divide in Los Angeles County, Sasaki said the county has chosen another path. “We were very flexible in terms of how we approached our model,” Sasaki said.

Broadband is one of the last remaining, truly bipartisan issues, according to Chip Pickering, the CEO of Incompas. Pickering said there might be a movement in Congress to restore and modernize broadband subsidies to help low-income earners afford services. “It is a national consensus and commitment of connecting every American,” said Pickering, who also served for 12 years in Congress representing Mississippi’s 3rd congressional district.

Affordable access was top of mind for elected county leaders from across the United States at a roundtable discussion hosted by Cox Communications. Carmen Moore-Zeigler, a commissioner representing District 2 in Alabama’s Montgomery County, stressed that the internet is a key factor when it comes to inspiring young people. Stan Sallee, a Tulsa County Commissioner from Oklahoma serving District 1, echoed similar sentiments.

Uncertainty breeds caution, especially when money itself costs more and is hard to get. But, with the $42 billion Broadband Equity Access and Deployment (BEAD) spigot set to turn on in about six months, deployments have actually slowed. Financing is indeed difficult, but not just because interest rates are high. The end of the Affordable Connectivity Program (ACP) in May ended a guaranteed cashflow that investors and lenders liked.

A quarter of U.S. households that relied on the Affordable Connectivity Program (ACP) to help pay for internet will drop their connections. That finding, along with others, was included in a recent Maravedis report, a market intelligence firm that has a focus on wireless infrastructure, multifamily connectivity, and smart technologies.

Linda Willey, who delivered a keynote address discussing the state of the multifamily industry on behalf of the National Multifamily Housing Council at the Broadband Communities Summit, said a current Federal Communications Commission (FCC) proposal to ban bulk billing offers a “serious threat for industry operations and the future of affordable broadband access for residents.” Out of over 92,600 units offered at Camden’s properties, Willey said less than .05 percent of residents moved out because of the bulk technology packages offered by Camden, according to recent data from the company.

Engagement is key with any successful public broadband network hoping to get off the ground, according to Chris Walker, the senior executive director of Infrastructure Strategy Noa Net, a non-profit public broadband organization owned by public utilities that operates in the Pacific Northwest. Kerem Durdag, the CEO of Maine-based Great Works Internet, said providers need to realize it’s alright to make money, but it’s also alright to have a social contract defining how a given project will benefit the community.

With the Federal Communications Commission's recent proposal to ban bulk billing arrangements in the multifamily industry, the National Multifamily Housing Council (NMHC) has been hard at work to ensure policymakers understand the full impact on the multifamily broadband industry.

Life Wireless, the Lifeline Assistance Program’s provider for Telrite Holdings, has vowed to continue accepting applications for their Lifeline Assistance Program after the Affordable Connectivity Program (ACP) runs out of funding in May. Life Wireless offers free service, data usage, and smartphones to low-income Americans. Subscribers are eligible for Lifeline Assistance Program help if they receive government assistance or if their income level is at or exceeds 135 percent below the federal poverty level.

On Day 2 of Connected America, a surprise guest took to the stage to issue a rallying cry for affordable connectivity across the USA. Austin Bonner, Deputy US CTO from the White House Office of Science and Technology Policy, warned that 23 million people stood to lose affordable connectivity if the Affordable Connectivity Program’s (ACP) funding is not renewed and urged a divided Congress to make additional funding a priority. Despite only around half of eligible households taking advantage of the program, funding is running out.