Affordable Connectivity Program (was Emergency Broadband Benefit Program)

The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount.

This episode of The Divide features John Horrigan, senior fellow at the Benton Institute for Broadband and Society. We discussed a new report released from Benton assessing the impact of the end of the Affordable Connectivity Program (ACP) on low-income households and the economy at large.

Goal One for the District of Columbia State Broadband and Digital Equity Office is to make high-quality, affordable, high-speed internet accessible to all residents of D.C. in their homes and local Community Anchor Institutions (CAIs) and drive equitable adoption of broadband. Key to that goal is ensuring that no D.C. resident must pay more than two percent of their gross income per month for high-speed internet. But, as a percentage of the total population, D.C. has more people with income below 150 percent of the federal poverty line than the US does overall.

Charter Communications reported financial and operating results for the three and six months ended June 30, 2024. Charter had 29.6 million residential customer relationships, excluding mobile-only relationships.

When it comes to cable earnings, the outlook hasn’t been exactly optimistic. Cable broadband “may decline for the foreseeable future,” Wolfe Research recently predicted, as valuation multiples for Charter and Comcast “near all-time lows.” Charter and Comcast lost 149,000 and 120,000 broadband subscribers, respectively, in the second quarter.

For as long as the internet has existed, there’s been a gap between those who have access to it—and the means to afford it—and those who don’t. The vast majority of federal broadband spending over the past two decades has gone toward expanding internet access to rural areas. Only $14.2 billion went to making the internet more affordable through the Affordable Connectivity Program.

A new survey from the Benton Institute for Broadband & Society focusing on low-income Americans shows that affordability challenges are pervasive for low-income households, a problem the Affordable Connectivity Program (ACP) helped alleviate for those most in need. The survey finds that:

Delaware’s goal for broadband deployment is to be the first state to deliver universal broadband—that is, to ensure an affordable high-speed internet connection to all homes and businesses. Affordability is the second most common reason for nonsubscription cited by Delawarean households who do not purchase home internet service—ranking above a lack of need for or interest in service, and slightly below service not being available. The struggle of some Delaware residents to afford broadband services, devices, and technical support restricts their ability to fully engage in the digital world.

West Virginia's plan for Broadband Equity, Access, and Deployment (BEAD) Program funds aims to ensure that every resident has access to reliable, affordable, and high-speed broadband and the ability to use it effectively. The cost of high-speed broadband internet service in West Virginia remains a significant barrier to adoption.

J.D. Vance, the Ohio GOP senator announced as Donald Trump's running mate for the presidency, isn't expected to have a broad impact on US telecommunications policies. But he could have something to say about how the country helps consumers afford access to critical broadband services.