Low-income

In this episode of The Divide, broadband advocate Gigi Sohn returns to the podcast, on behalf of the Affordable Broadband Campaign (ABC), to discuss the end of the Affordable Connectivity Program (ACP) and how to get a version of the ACP back through Universal Service Fund (USF) reform.

Uncertainty breeds caution, especially when money itself costs more and is hard to get. But, with the $42 billion Broadband Equity Access and Deployment (BEAD) spigot set to turn on in about six months, deployments have actually slowed. Financing is indeed difficult, but not just because interest rates are high. The end of the Affordable Connectivity Program (ACP) in May ended a guaranteed cashflow that investors and lenders liked.

It’s a familiar scene in communities across the nation: teenagers lingering outside fast-food restaurants and inside malls with laptops on their knees, surfing for free public Wi-Fi to be able to do their homework. Some 17 million students across the nation don’t have internet service at home, hampering their ability to study and complete assignments and prepare themselves for college and the workforce.

A quarter of U.S. households that relied on the Affordable Connectivity Program (ACP) to help pay for internet will drop their connections. That finding, along with others, was included in a recent Maravedis report, a market intelligence firm that has a focus on wireless infrastructure, multifamily connectivity, and smart technologies.

The Broadband Equity, Access, and Deployment (BEAD) Notice Of Funding Opportunity (NOFO) outlines specific requirements for states and subgrant recipients to ensure they provide comprehensive broadband service. Specifically, the Program “prioritizes projects designed to provide fiber connectivity directly to the end user.” Providing reliable, high-speed internet to every unit within a multi-dwelling unit (MDU) is implicitly required to meet the goals of the BEAD program.

More than 70,000 Kansas households lack broadband access and over 35,000 additional households’ existing service options render them “underserved.” In addition, many of Kansas’ 8,500 community anchor institutions (CAIs) lack gigabit-level broadband service that would better allow them to provide full levels of support to their communities.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) awarded more than $9 million to Nevada to implement its Digital Equity Plan.

What can be done for the 23 million households that relied on the Affordable Connectivity Program? The Federal Communications Commission could start a proceeding to increase the amount of money in the USF so that it can fund an ACP-like subsidy. It has the power under the Communications Act, it has a consistent funding source, and it has a reason with the ACP’s expiration—an event former FCC Chief of Staff Blair Levin describes as the “biggest step any country has ever taken to widen, rather than close, its digital divide.” Given all this, why doesn’t the FCC act?

Lifeline and the now defunct Affordable Connectivity Program have helped millions of families afford Internet services that support online learning, remote work, and access to telehealth, among many other uses linked to social and economic wellbeing. However, individuals and families entitled to receive these benefits often have to navigate a complex web of procedures to demonstrate eligibility, enroll in the program and receive services.

A recent Harris-Guardian poll shows that the public’s perception of the economy is different than economic reality. Most things that the majority of Americans believe about the economy are wrong. I have to say this surprised me more than it probably should have.