Affordable Connectivity Program (was Emergency Broadband Benefit Program)

The outlook for the Affordable Connectivity Program (ACP) remains terminal, with none of the multiple late-hour efforts in Congress intended to replenish funding for the depleted program appearing close to achieving that goal. The cancellation of the ACP, which comes at a time when the US broadband industry is already bleeding customers, with Comcast Cable president and CEO Dave Watson telling investors to expect increased customer attrition in the second and third quarters. On a consumer level, the ACP’s sunset could leave more than 23 million U.S.

Digital connectivity is important for everyone to gain access to productivity and life-improving technologies. As we march into the era of generative artificial intelligence and the acceleration of fintech for businesses and personal banking, digital inclusion (DI) becomes an increasingly important topic for community development and economic inclusion.

The Affordable Connectivity Program (ACP) that provides a discount for millions of homes will disappear unless Congress takes action to continue it. Most big internet service providers (ISPs) have announced how they will handle broadband for low-income homes after the end of ACP. 

Rep Brandon Williams (R-NY) has introduced a bill to fund the Affordable Connectivity Program (ACP) through Fiscal Year 2024. H.R. 8466, the Affordable Connectivity Program Improvement and Extension Act of 2024, will replenish the Affordable Connectivity Fund with $6 billion by amending Section 521(4)(a) of the Consolidated Appropriations Act, 2024.

The pace of US broadband subscriber growth slowed considerably in the first quarter of 2024 as fiber, fixed wireless access (FWA) and cable broadband service providers collectively turned in results that were worse than what they posted in the year-ago period. Total industry net additions, including or excluding FWA and geosynchronous (GEO) satellite broadband providers, decelerated noticeably in Q1 2024.

On May 16, 2024, Federal Communications Commission Chairwoman Jessica Rosenworcel appeared before the House of Representatives Financial Services and General Government Subcommittee to review the Federal Communications Commission’s Fiscal Year 2025 budget request. The Chairwoman highlighted some of the FCC's critical work, including the National Broadband Map and efforts to stop robocalls. She also emphasized the need for the FCC's spectrum auction authority to be reinstated, and spoke about the impending end of the Affordable Connectivity Program.

The Affordability Connectivity Program, a federal program that helped lower-income households pay their Internet bills and connect to the Internet, fully expires at the end of May, but Rep Kathy Manning (D-NC) is calling for it to continue. Rep Manning enlisted Guilford County and Rockingham County schools superintendents and State Senator Michael Garrett (D-27), to help make the case. Rockingham County Superintendent John Stover said the school district invested effort and dollars, alongside other partners, toward expanding infrastructure for families to access the Internet in the county.

Sen Ted Cruz (R-TC) will propose plans May 16 to maintain the Affordable Connectivity Program in a slimmed-down new form.

Mediacom has increased the download speeds of two of its service tiers and introduced a new plan aimed at economically challenged households that could be a low-cost option for households losing their Affordable Connectivity Program (ACP) benefit. The service provider’s Xtream Internet 100 will become Xtream Internet 250, with download speeds increasing from 100 Megabits per second (Mbps) to 250 Mbps. The Xtream Internet 300 tier will become Xtream Internet 500, with download speeds increasing from 300 Mbps to 500 Mbps. The switch will be flipped on the higher download speeds on May 17.

The cable industry hasn’t been doing too great with keeping broadband subscribers, and Charter is no different. CEO Chris Winfrey’s take on the situation?