Affordability/Cost/Price

A forthcoming report from the Benton Institute on Broadband & Society examines the impact of the demise of the Affordable Connectivity Program (ACP) on low-income Americans and the affordability of home broadband service. The main findings from the survey are: 

Vermont-focused broadband provider Burlington Telecom has introduced two service plans that it says will help subscribers who previously depended on the Affordable Connectivity Program (ACP). Burlington Telecom, which serves the city of that name and nearby communities, is offering two low cost programs. One is priced at $9.95 per month and offers 50 Mbps symmetrical service.

AT&T CEO John Stankey said the most critical issue facing the telecommunications industry is the effective implementation of Broadband Equity, Access, and Deployment Program. To close the digital divide, Stankey said, additional policies should be created to ensure that all BEAD Program funds (“every dollar of taxpayer money”) are used to expand access to broadband as quickly as possible.

In this episode of The Divide, broadband advocate Gigi Sohn returns to the podcast, on behalf of the Affordable Broadband Campaign (ABC), to discuss the end of the Affordable Connectivity Program (ACP) and how to get a version of the ACP back through Universal Service Fund (USF) reform.

On May 20, Rep Sheila Cherfilus-McCormick (D-FL) wrote to Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel to express concerns regarding the Chairwoman's proposal to prohibit bulk-billing arrangements in multi-dwelling units. On June 10, Chairwoman Rosenworcel responded, explaining that the proposed rulemaking has the potential to "empower consumer choice and boost competition." "As you note in your letter, the last time the Commission revisited this issue was in 2010, when it found that these arrangements can predominately offer benefits to consumers.

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.

It’s a familiar scene in communities across the nation: teenagers lingering outside fast-food restaurants and inside malls with laptops on their knees, surfing for free public Wi-Fi to be able to do their homework. Some 17 million students across the nation don’t have internet service at home, hampering their ability to study and complete assignments and prepare themselves for college and the workforce.

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.