Low-income

The Affordable Connectivity Program (ACP) is at an inflection point. Launched in early 2022, ACP provides 17 million households up to $30/month in subsidies to offset the cost of broadband. But the program faces two critical challenges. First, less than a third of eligible households currently participate in the program—mainly because the people who could benefit most from the subsidy are unaware that it exists. The Federal Communications Commission (FCC), local governments, and digital equity groups are stepping up efforts to improve ACP awareness and participation.

After a year of operation, half of all households eligible for the Affordable Connectivity Program (ACP) internet subsidy are unaware of the benefit. A January 2023 survey of low-income households finds that over 50% say they have never heard of the program or do not know anything about it. Although many eligible households are unaware of ACP, the survey points to ways in which policymakers and community leaders can encourage enrollment. First, outreach can make a difference.

Fitting the monthly cost of a broadband subscription into a low-income household budget is difficult, to say the least, because of the costs of competing necessities like lodging, food, and healthcare. These financial pressures—and unexpected expenses—keep too many people in the U.S. from subscribing to home broadband service—or cause them to drop service at times to make ends meet. During the COVID-19 pandemic, Congress recognized these obstacles for low-income people and created a program—first called the Emergency Broadband Benefit Program—to reduce the monthly costs of connectivity.

The pandemic spurred policymakers and community leaders around the country to create programs to connect those without home broadband service or computers. These programs have had an impact. New government data show sharp increases in broadband and computer adoption in the 2019-to-2021 time frame. Initiatives such as the Affordable Connectivity Program (ACP) have helped address “subscription vulnerability” for low-income households. With progress evident, it is time to extend and build on the ACP and local affordability programs.

Over the last two years, in California and across the country, billions of public dollars have been allocated to end the digital divide. The Digital Equity LA coalition, supported by the California Community Foundation (CCF) Digital Equity Initiative, has mobilized to ensure these investments are directed to the communities that need them most—those that have been historically marginalized and are disproportionately disconnected—and deployed in support of the most effective long-term solutions.

If the federal government’s investments in broadband connectivity are to be effective, different programmatic pieces must work together. Broadband infrastructure funds are necessary to ensuring universal access, but not sufficient to achieve full digital equity. Equitable broadband adoption depends on people having the financial means to maintain service, which the Affordable Connectivity Plan (ACP) facilitates, as well as access to wrap-around digital inclusion services (such as tech support and skills training).

We're just a few days from Juneteenth, a holiday that reminds us of the critical connection between communications and equity. June 19 commemorates the day in 1865 when slaves in Texas first learned about the Emancipation Proclamation issued by President Abraham Lincoln in 1863. Cut off from communications, slaves in Texas were deprived news of their freedom for over two and a half years. One hundred and fifty-seven years later, we can still see how lack of access to communications holds back individuals, families, and communities.

President Biden and Vice President Harris announced that they have secured private sector commitments that will lower high-speed internet costs for millions of American families. As part of the Bipartisan Infrastructure Law, the President and Vice President worked with Democrats and Republicans to create the Affordable Connectivity Program (ACP), which allows tens of millions of American households to reduce their internet service costs by up to $30/month (or $75/month on Tribal lands).

As policymakers begin to plan how to use Infrastructure Investment and Jobs Act (IIJA) funds to increase broadband connectivity, there are three important data points from two recent surveys to keep in mind:

1. Some 32% of households are subscription vulnerable, that is, they struggle to maintain service and have a very difficult time affording service.

2. Only 18% of cellphone-only respondents were “very satisfied” with their online access for activities such as school or work, activities that moved online during the COVID-19 pandemic.

 This is the third in a series of articles looking at which providers are opting to offer services supported by the Affordable Connectivity Program. Here, Benton looks at the offerings of the largest wireless companies in the United States. According to wireless trade association CTIA, all three national providers and numerous regional providers support the Affordable Connectivity program—representing approximately 95% of existing wireless subscriptions and covering more than 99% of all Americans.