Affordable Connectivity Program (was Emergency Broadband Benefit Program)

On March 14, the Federal Communications Commission adopted its annual assessment of whether broadband is being deployed in a reasonable and timely fashion.

Even though there are enough Republicans in Congress to pass an extension of the soon-expiring Affordable Connectivity Program, industry observers are pessimistic about its passage. Because House Speaker Mike Johnson (R-LA) is not supportive, said Blair Levin, the measure is unlikely to get a vote before the House of Representatives. Paul Gallant, a technology policy analyst for investment bank TD Cowen, agreed. “Congress is probably going to do nothing,” said Levin. "If it were to hit the floor, it would pass, and I don’t think Speaker Johnson is going to let it go to the floor.

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.

In the absence of the Affordable Connectivity Program, the National Digital Inclusion Alliance (NDIA) encourages ISPs to offer a low-cost plan and/or a discount to qualifying households. NDIA is creating a good-better-best rating system to evaluate the affordability and quality of low-cost internet plans. The rating system will be featured on the Free & Low-Cost Internet Plans webpage to help consumers understand their low-cost options.

We are seeing a shift into a digital world. Internet access is increasingly becoming a requirement to participate in education, health care and the workforce. More and more, national companies are embracing the idea of virtual reality, and on the city level, we’re seeing growth in the use of social media and digital engagement more than ever before. We even consume our news mostly online. And, while this is an exciting and fast-paced shift, we MUST make sure that we are not leaving people behind as we grow.

In January, I was in Raleigh, North Carolina, where we’re investing $3 billion to connect the entire state for affordable high-speed Internet to end—by the end of the decade.  And we’re doing it in all 50 states. It’s critical for children to be able to do their homework, small businesses to be able to sell their products, folks to have access to telemedicine when they’re driving—without driving to see their doctors if they live in the countryside.

President Biden is fighting to lower costs for American families and has made lowering costs his top domestic priority.

The United States has lately gotten serious about broadband expansion, with the federal government spending tens of billions of dollars to deploy services all over the country — especially in rural areas, where coverage is sparse. But how widely connectivity is available matters little if consumers can’t afford it.

While there's still a chance that funding for the Affordable Connectivity Program (ACP) will be extended beyond April, one top policy expert fears that a successful extension faces an "uphill struggle." That was the assessment of New Street Research Policy Analyst Blair Levin, who shared his latest thoughts on the perils of the program in a research note. A pressing issue, he points out, is that ACP was not woven into Congress's latest budget package.

With the end of the Affordable Connectivity Program (ACP) increasingly likely if Congress does not quickly step in with more funding, broadband operators are adjusting their game plans to continue to serve customers who have been benefiting from the program. Comcast, which has about 1.4 million customers on ACP, is no different.