Agenda

I applaud private efforts to address low-income adoption, particularly Comcast’s Internet Essentials, which is the oldest and most extensive program. Comcast started the program in 2011 and has continually studied and changed the program to improve its outcomes. That is the path the Federal Communications Commission (FCC) and Congress should follow with the Affordable Connectivity Program (ACP).

Telephone companies may want to ditch copper and focus on the next best thing (i.e., fiber). But states aren’t about to let them off the hook. According to New Street Research, ILECs seeking to end their carrier of last resort (COLR) obligations are getting pushback from states because consumers might not have another option for internet access—including wireless. A COLR is a telecommunications service provider that’s required to serve upon request all customers within its designated service areas.

In a series of orders beginning in 2005, the Federal Communications Commission has acted to promote the widespread deployment of broadband networks that are open, affordable, and accessible to all. Four of these previous orders have been reviewed by the D.C. Circuit; the challenge to a fifth order is currently pending (but in abeyance) there as well.  The D.C. Circuit has approved aspects of the FCC’s orders but disagreed with others—on several occasions remanding to the FCC for further action or additional deliberation. Thus, for more than a decade, the D.C.

The press is suddenly full of articles talking about how some internet service providers (ISPs) are offering affordable rates to low-income homes now that the Affordable Connectivity Program (ACP) monthly subsidy has died. Some ISPs are extending the $30 discount for a limited time, while others are offering more affordable broadband plans than in the past. Other ISPs are only making a nod towards affordable broadband and some aren’t giving any discounts to low-income households.

This paper hypothesizes that Affordable Connectivity Program (ACP) enrollment decisions are not solely individual, but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above.

A fair reading of Dr. John Horrigan’s work would start by adopting his insight that the Affordable Connectivity Program (ACP) is part of a three-legged stool that during the pandemic helped increase broadband adoption and sustain it for low-income households.