Affordable Connectivity Program (was Emergency Broadband Benefit Program)

House Commerce Committee Chairman Frank Pallone, Jr.

After President Joe Biden called on all agencies to reduce or eliminate hidden fees in September 2022, the Consumer Financial Protection Bureau (CFPB) took action to effectively eliminate billions in banking fees. Fees account for tens of billions of dollars in revenue – a substantial source of revenue in many industries, including transportation, banking, internet, and hospitality.  The CFPB's actions work in tandem with other initiatives

At the height of the coronavirus pandemic, Congress chartered a first-of-its-kind federal effort to help struggling Americans who could not afford to lose access to the internet. The aid proved to be a godsend for millions of low-income families, but it also sent the nation’s telecommunications giants scrambling for the new federal money—unleashing price hikes, service cuts, and fraud risks that hurt customers and taxpayers alike. The story of the government’s roughly $17 billion efforts to close the country’s persistent digital divide is one of great promise and costly peril.

On October 17, trade groups NTCA, USTelecom, CTIA, and ACA Connects met Federal Communications Commission officials to discuss the Affordable Connectivity Program transparency proceeding. The associations offered proposals to maximize the effectiveness of the proposed data collection while keeping it streamlined and efficient for the benefit of consumers and providers alike.

ConnectWaukegan, a public-private broadband provider, conducted a Citizens Broadband Radio Service (CBRS) Fixed Wireless prototype in Waukegan (IL) as a proof of concept. The research was done to present the findings and recommendations for potential leverage of CBRS Fixed Wireless capabilities to increase access to broadband by underserved residents in the city.

The Federal Communications Commission set guidelines for two pilot programs aimed at increasing both awareness of and participation in the Affordable Connectivity Program, which provides a discount of up to $30 per month toward internet service for eligible households (and up to $75 per month for households on qualifying Tribal lands). On October 11, the FCC provided an update on the implementation of the pilot programs.

From an unnamed Comcast public relations officer: The Affordable Connectivity Program (ACP) program is an important opportunity to connect more Americans to broadband than ever before and to close the digital divide, and we’ve been working hard to get the word out locally. The programs were implemented with incredible speed by both the government and private companies, and while some bumps in the road were expected, we are working to address issues as soon as possible. We have worked consistently to simplify the processes for consumers while keeping the proper checks and balances in place.

Comcast’s entry-level internet service was not fast enough for Lia Moniz’s two schoolkids, so she upgraded to a faster connection that costs her more than $80 a month. A new Comcast offer, Internet Essentials Plus (IEP), has the potential to make Moniz’s internet free. IEP has the most bang for the buck. It offers speeds up to 100 megabits per second downstream and 10 megabits up, with free cable modem and Wi-Fi hot spot rental, for $29.95 a month. This is covered by the $30 Affordable Connectivity Program (ACP) benefit, so on the bottom line, it’s free.

The National Telecommunications and Information Administration (NTIA) conducted an annual broadband survey in 2021. The survey asked folks who didn’t have home broadband what they would be willing to pay, with the question, “At what monthly price, if any, would your household buy home Internet service?” The purpose of the survey was to understand the kind of price points that might be needed to get broadband to more of these households. Three-quarters of respondents said they would only get broadband if it was free. I find this result to be troubling for several reasons:

About half of the Milwaukee (WI) households eligible for low-cost internet service are now enrolled in a federal program that offers it, but statewide enrollment is only around 25% and the program’s barely been used in many communities, according to new figures. Even in Milwaukee, where the Affordable Connectivity Program (ACP) has been heavily promoted, thousands of eligible households haven’t signed up for the benefit that provides $30 a month toward the cost of internet service, also known as broadband.