Affordability/Cost/Price

We are writing to express our support for extending funding for the Affordable Connectivity Program, an essential program that over 23 million families rely on to access quality and affordable high-speed internet. The Affordable Connectivity Program has been a key tool in our efforts to eliminate the digital divide in America since it was created by the Bipartisan Infrastructure Law in 2021. The fact that the Affordable Connectivity Program was enacted into law as a part of the Bipartisan Infrastructure Law is not lost on us – it’s a program that has wide support.

On Dec 15, 2023, Republican leadership from the Senate and House Commerce Committees wrote to Federal Communications Commission Chairwoman Jessica Rosenworcel with questions and concerns abbout the FCC's Affordable Connectivity Program (ACP).

The Affordable Connectivity Program (ACP) is a federal benefit that helps qualifying low-income households pay for internet service and devices. Since January 2022, the ACP has grown to help over 22 million U.S. households (roughly one in six of all Americans) access the internet. However, the ACP is running out of funding. Congress originally appropriated $14.2 billion for the ACP, but over time that amount has been spent down to the point where the ACP is on course to run out of funding this Spring.

Continuation of the Affordable Connectivity Program (ACP) in some form seemed assured, and advocacy and industry groups support it, but opposition is growing. Opponents so far have been concentrating on the obvious:

Excess Telecom, the nation’s largest privately held provider of internet service through the Affordable Connectivity Program (ACP), announced its unequivocal support of the Affordable Connectivity Program Extension Act, a bipartisan and bicameral bill that would provide $7 billion in additional funds for the ACP.

Millions of older Americans receive federally funded discounts for high-speed internet, and AARP wants to ensure that support continues. We wrote to congressional lawmakers in favor of the Affordable Connectivity Extension Act of 2024. This new legislation would provide $7 billion in funding to ensure the Affordable Connectivity Program (ACP), which provides high-speed internet discounts, will continue past April. That’s when the project’s funding is predicted to run out. The program has helped more than 22 million lower-income households afford high-speed internet.

In 2022, Governor Ned Lamont (D-CT) called on the Connecticut Commission for Educational Technology within the Department of Administrative Services (DAS) to lead the State’s efforts around digital equity. In late 2023, the commission released its draft digital equity plan, Connecticut: Everyone Connected, for public comment.

The fate of the Affordable Connectivity Program (ACP) hangs in the balance. Amid warnings that the internet subsidy program will shut down this spring without additional funds, Congress proposed legislation that would allocate another $7 billion to the ACP pool. But chances of the bill becoming law is “significantly below 50%,” said New Street Research’s Blair Levin. The $7 billion allotment is slightly higher than the $6 billion figure the Federal Communications Commission requested, saying it would extend ACP benefits through the end of the year.

The Federal Communications Commission's Wireline Competition Bureau (Bureau) announced requirements and guidance for the wind-down of the Affordable Connectivity Program (ACP).  The FCC currently projects that the last month for which the ACP can fully reimburse providers for the ACP benefits provided to enrolled households is April 2024. Should Congress not appropriate additional money, the existing funds will be exhausted, the FCC will have to end the ACP, and providers will stop providing discounts to enrolled households.

All of the big cable companies, and many of the smaller ones, routinely use hidden fees to disguise the true cost of buying cable TV. The Federal Communications Commission has been moving to tackle hidden fees, and at its December 2023 meeting it released a Notice of Proposed Rulemaking that proposes to eliminate a service fee and early termination fees on customer who want to break the contracts that are required to get promotional pricing. Not surprisingly, the cable industry is fighting vehemently against the elimination of such fees.