Affordability/Cost/Price

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.

Federal Communications Commission Chairwoman Jessica Rosenworcel has asked her fellow commissioner to consider either a ban or constraint on bulk billing. We predicted the Chair’s proposal would hit significant resistance. The record reveals that the resistance is strong, coming not just from the expected ISPs but also from groups traditionally at odds with ISPs, groups generally aligned with low-income consumers, and those concerned about low-income adoption. Considering the opposition:

More than 70,000 Kansas households lack broadband access and over 35,000 additional households’ existing service options render them “underserved.” In addition, many of Kansas’ 8,500 community anchor institutions (CAIs) lack gigabit-level broadband service that would better allow them to provide full levels of support to their communities.

At the end of the first quarter of 2024, T-Mobile and Verizon together have accumulated 8.6 million customers nationwide on fixed wireless access (FWA) cellular home broadband. This is amazing success for a product that was just launched in 2021. The combined FWA customers represent 7 percent of the entire U.S. broadband market. Nobody knows exactly where the companies are finding the new customers because they aren’t telling, and the companies losing customers are mum about it. The appeal of FWA is obvious.

What can be done for the 23 million households that relied on the Affordable Connectivity Program? The Federal Communications Commission could start a proceeding to increase the amount of money in the USF so that it can fund an ACP-like subsidy. It has the power under the Communications Act, it has a consistent funding source, and it has a reason with the ACP’s expiration—an event former FCC Chief of Staff Blair Levin describes as the “biggest step any country has ever taken to widen, rather than close, its digital divide.” Given all this, why doesn’t the FCC act?

Lifeline and the now defunct Affordable Connectivity Program have helped millions of families afford Internet services that support online learning, remote work, and access to telehealth, among many other uses linked to social and economic wellbeing. However, individuals and families entitled to receive these benefits often have to navigate a complex web of procedures to demonstrate eligibility, enroll in the program and receive services.

Charter and Cable One are planning to raise internet prices this summer—news that comes after both companies announced a batch of layoffs. Charter plans to raise the internet base price on all plans by $3 monthly (or $4 for legacy plans). Those rates will take effect in July. As for Cable One, it is increasing Sparklight high-speed internet rates by $5 per month effective July 1.

A recent Harris-Guardian poll shows that the public’s perception of the economy is different than economic reality. Most things that the majority of Americans believe about the economy are wrong. I have to say this surprised me more than it probably should have. 

A June 11 letter to National Telecommunications and Information Administration (NTIA) Assistant Secretary Alan Davidson about the unlawful pressure campaign on states by the Biden Administration to regulate broadband rates through the Broadband Equity Access and Deployment (BEAD) program. It is my priority to hold this Administration accountable for its propensity to act with impunity.

I recently testified at a Senate Communications Subcommittee Hearing in support of legislation to extend the Affordable Connectivity Program (ACP).