EBB Program Could Last Until at Least Next Year
With nearly 3.1 million households enrolled to date in the FCC’s emergency broadband benefit program, experts told us the program could last at least another year if enrollment numbers and the amount of money ISPs seek for reimbursement remain at the current pace. Others said it’s too early to say because of the limited data available.
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Providers have submitted reimbursement claims totaling $34.3 million in monthly broadband support and $311,873 in connected devices, but that doesn't necessarily provide a full picture of how fast funds are being claimed. The FCC granted providers a one-month extension to submit reimbursement claims for the month of May (see 2106280045). An FCC spokesperson said they anticipate “at least several months of emergency broadband benefit funding.”
A year to 18 months is “probably the best guess” about how long the program may last, said Scott Wallsten, Technology Policy Institute president. One factor to consider is that it’s “completely in the interest of an ISP to get a subscriber to buy a more expensive plan” if it can receive $50 per month, Wallsten said. That will affect how far the money goes and how long the program lasts, he said. Some providers were accused of upselling services early on, which FCC acting Chairwoman Jessica Rosenworcel said went against the “spirit” of the program (see 2105200058).
There’s “just not enough data yet” to know what the program’s effects have been, Wallsten said, saying he wishes the FCC would put out “better data” because the enrollment data by three-digit ZIP codes released on Tuesday aren’t helpful. The new data covers large areas that don’t allow for much statistical data to be combined with other things, he said: “There’s not a lot else you can do with it.” The average monthly discount was likely about $17 per household during May, Wallsten said. If it stays at that number and all households eligible for Lifeline enroll, the program may end between August and September 2022, he said. If half of that population enrolls, the program could extend through the end of 2022.
It’s “too early to say,” but “we are optimistic that the funding would last through February of next year,” said Alejandro Roark, Hispanic Technology & Telecommunications Partnership executive director. The program has been “effective” in getting people connected to the internet, said Roark. The states with the highest Latino populations have the highest enrollment numbers.
“What we know from the data is that actually households that are enrolling … really are being conscientious about not just this short-term subsidy but in selecting plans that are going to match their budget long term,” Roark said. Households are “being thoughtful about what they're subscribing to,” he said, which will “extend the life cycle of the program.” Roark said his group is “tentatively working” with Rep. Marc Veasey’s office to either allocate additional funding to the program or establish a permanent program. Veasey is a Texas Democrat.
The program could end even sooner “if we can really ramp up signing people up,” said Kim Keenan, Internet Innovation Alliance co-chair. Keenan said she plans a roundtable on what has been working to get the word out and enroll more eligible households. She said it may be more beneficial for the FCC to provide more stories from enrollees that could resonate with potentially eligible people rather than add more data: “They’re calculating the information in real time based on being in the program, so I don't know that we need something more.”