Low-income

Chris Mitchell speaks with Andy Schwartzman, Senior Counselor at the Benton Institute for Broadband & Society, about pressing legal issues affecting telecommunications policy in the U.S.

The Universal Service Fund (USF) has been stuck in legislative limbo as the government wrestles with how to improve the subsidy program. Experts think USF reform could see momentum in Trump’s second term, but how that will pan out is a trickier question to answer. The USF, which supports broadband access and affordability in rural and low-income communities, is made up of four [sic] smaller programs: Connect America Fund, Lifeline, E-Rate and Rural Health Care. One glaring problem with the current USF framework is the shrinking contribution base.

A key challenge to achieving universal broadband adoption in Alabama is that low-income households struggle to afford broadband services and devices with adequate technical support. Among Alabama residents who do not have internet service at home, 42.6 percent report that a primary reason they do not pay for broadband at home is an inability to afford service.

The Affordable Connectivity Program lapsed in May 2024. At the time the program ended, there were more than 13 million ACP recipients getting a discount on a cellphone plan and 10 million getting a discount on landline broadband.

Comcast's broadband business showed some surprising strength as the operator said it would've gained broadband subscribers in Q3 2024 if not for the demise of the Affordable Connectivity Program (ACP). Comcast lost 87,000 broadband subs in the third quarter, comprised of a loss of 79,000 residential customers and 8,000 business customers, lowering its grand total to 31.98 million.

A bipartisan group of senators is looking into Universal Service Fund (USF) reform and, even better, there are solutions on which both parties can agree.

Comcast Corporation reported results for the quarter ended September 30, 2024. Connectivity & Platforms Customer Relationships Decreased by 29,000 to 51.7 Million and Domestic Broadband Customers Decreased by 87,000 to 32.0 Million, Including the Impact From the End of Affordable Connectivity Program (ACP).

Subsidies like the Affordable Connectivity Program (ACP) are unaffordable and set communities up for failure, according to Eric Sasaki, the manager of major programs at L.A. County’s internal services department. To address the digital divide in Los Angeles County, Sasaki said the county has chosen another path. “We were very flexible in terms of how we approached our model,” Sasaki said.

When millions of Americans cast their ballots on Election Day, the Affordable Connectivity Program won't be up for a vote, but the results could dictate whether we see an internet subsidy of its size again. The ACP was passed in 2021 as part of the Infrastructure Investment and Jobs Act, when Congress dedicated $14.2 billion to making the internet more affordable to low-income users.

Broadband is one of the last remaining, truly bipartisan issues, according to Chip Pickering, the CEO of Incompas. Pickering said there might be a movement in Congress to restore and modernize broadband subsidies to help low-income earners afford services. “It is a national consensus and commitment of connecting every American,” said Pickering, who also served for 12 years in Congress representing Mississippi’s 3rd congressional district.