Upcoming policy issue

Mobile operators will feel a financial twinge if the FCC's Affordable Connectivity Program (ACP) is shut down this spring, but the cut won't cause extreme bleeding when it comes to subscribers, revenues and EBITDA (earnings before interest, taxes, depreciation and amortization).

Sens Edward Markey (D-MA) and Chris Van Hollen (D-MD) and Rep Grace Meng (D-NY), led 64 of their colleagues in a letter to Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel supporting the Commission’s proposal to expand the E-Rate program to allow schools and libraries to loan out Wi-Fi hotspots to students and educators.

In this economy, life as a working mom and caregiver for my grandma makes me feel like a magician. I pull rabbits out of my hat constantly. Every day, I somehow make a dollar out of 15 cents. Whether it’s the car payment, utilities, childcare, or rent, the economy does a great disappearing act with my income. A new program to lower the cost of my monthly internet, the Affordable Connectivity Program (ACP) has helped my daily magic show. It’s why I’m surprised to hear politicians in Washington are talking about letting it vanish in April. Congress needs to work together to save the program.

I am writing to keep you updated regarding the status of the Affordable Connectivity Program (ACP).  I last wrote you on January 8, 2024 to explain that the remaining funding we have for the ACP—the largest and most successful broadband affordability program in our Nation’s history—is insufficient to support consumers who count on this program beyond April 2024.  My January 8, 2024 letter stressed that more funding is needed to keep the ACP in place, and that absent additional funding, the FCC would need to take steps to start orderly wind-down procedures for the ACP.

The Affordable Connectivity Program (ACP) is a federally funded program that has offered a monthly benefit to eligible households. Without urgent congressional funding, ACP will run out of funds, most likely at the end of April 2024. The FCC’s ACP Wind-Down guidance includes critical information and estimated dates. In addition, the National Digital Inclusion Alliance is providing guidance, based on insights from our community of affiliates, for organizations navigating this difficult period.

Senators of both parties are focusing their criticism on a law that Congress passed in 1996—a law that paved the way for social media as we know it. That law, said Sen. Dick Durbin (D-IL), “needs to change.” The statute in question is Section 230 of the Communications Decency Act, which gives online service providers broad immunity from lawsuits over their users’ posts, with the goal of promoting free expression online. Over the years, it has survived court challenges, legislative pushes, and an executive order by President Donald Trump. Now, it is in Congress’s sights once again.

The fate of the Affordable Connectivity Program (ACP) remains unknown, but with the Federal Communications Commission scheduled to halt new enrollments in February, internet service providers are thinking about how a shutdown would impact the consumers relying on the subsidy. Some of the bigger companies like AT&T, Comcast and Verizon, said on their earnings calls they have backup plans if the ACP goes away. But what do the regional and rural providers think about the situation?

"We are extremely pleased that the FCC has adopted new and powerful rules prohibiting digital discrimination.  We have nonetheless challenged two small, but important provisions of the rules today in the U.S.

By now, everybody has written about the pending end of the Affordable Connectivity Program (ACP). The White House asked Congress to fund the ACP for a year for over $6 billion, and almost everyone I know is betting against a miracle from Congress. But even if the ACP gets funded somehow, how sustainable is the ACP if Congress has to act every year to renew it? There have been calls for moving the ACP under the Federal Communications Commission’s Universal Service Fund (USF).

On Dec 12, 2023, Sen Ben Ray Luján (D-NM) wrote to Federal Communications Commission Chairwoman Jessica Rosenworcel requesting input on proposals to modify the contribution base for the Universal Service Fund (USF).