The California Public Utilities Commission authorized pilot programs to allow low-income consumers to stack state and federal benefits to pay for wireline and wireless broadband services. At a virtual meeting Thursday, commissioners voted 5-0 for a revised draft (see 2306060048) in docket R.20-02-008. Meanwhile, a consumer group is raising concerns about Verizon’s Friday letter to the commission on its struggles to migrate TracFone California customers to its network. Ensuring those customers weren’t abandoned was a “central issue” in the state commission’s merger review two years ago, Center for Accessible Technology (CforAT) legal counsel Paul Goodman said in an interview.
Affordable Connectivity Program (ACP)
What is the Affordable Connectivity Program (ACP)?
The Affordable Connectivity Program was a recently expired subsidy for low-income households to lower the cost of purchasing broadband internet and connected devices. The program was signed into law as part of the 2021 Infrastructure Investment and Jobs Act and administered by the FCC up until June 1, 2024, due to expiration of the ACP’s funding.
Will the ACP Return?
Congress continues to debate restoring ACP funding, with immediate next steps likely to come from the Senate Commerce Committee or Congressional discussions on revising the Universal Service Fund.
Latest News on the Affordable Connectivity Program
A proposed California low-income pilot could be extended beyond the conclusion of the federal affordable connectivity program (ACP), under a revised draft released Monday. The California Public Utilities Commission plans to consider the item in docket R.20-02-008 at Thursday’s meeting. "The assigned Commissioner or assigned ALJ may extend the wireline pilot program beyond the conclusion of ACP to a date no later than two years after the effective date of this decision, regardless of whether the ACP is replaced by a successor federal subsidy program,” said new language by assigned Commissioner Genevieve Shiroma. “An extension ruling may not change the California LifeLine subsidy provided through the pilot program or replace the loss of the ACP discount.” Also, Shiroma revised a draft requirement that wireless pilot providers propose a replacement plan for customers after the pilot ends. "A service provider may propose to modify a replacement wireless service plan through a subsequent Tier 1 advice letter, so long as the replacement plan does not increase customer co-payments or reduce customer benefits,” it said. Apparently in response to Verizon’s concerns (see 2305170034), the revised draft also added an exception for “reasonable network management practices” to a proposed restriction on throttling wireless speeds. Providers may limit free smartphone distribution to one per household every 90 days, said another change to the draft.
The FCC continues “to welcome opportunities to improve” the affordable connectivity program (ACP) “and meet our shared goal of connecting 100% of us,” a spokesperson emailed us in response to commission acting Inspector General Sharon Diskin’s letter earlier this week to GOP leaders on the House and Senate Commerce committees that she “shares” some of their concerns with the program’s administration. Diskin criticized the FCC for not applying “lessons learned from prior program experience” when it wrote ACP’s rules (see 2305310080). The FCC set up ACP “in record time because Congress required it” via the 2021 Infrastructure investment and Jobs Act “and because we recognize affordable broadband is essential for modern life,” the spokesperson said: “We remain committed to protecting the success and integrity" of ACP "so it operates as Congress envisioned. As such, we’ve independently launched our own program audits, including asking providers to share additional information about their alternative verification programs.” Any “reviews by the inspector general” like Office of Inspector General’s ACP audit “are met with swift response by the agency so we can maintain the ACP’s program integrity,” the spokesperson said.
The FCC’s Office of Inspector General (OIG) shares “many of the same concerns” top Republican leaders of the House and Senate Commerce committees voiced in early May about the commission's management of broadband money it received for the affordable connectivity program (ACP) during the COVID-19 pandemic (see 2305080067), acting IG Sharon Diskin told the GOP leaders Tuesday in a letter we obtained. House Commerce Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce ranking member Ted Cruz, R-Texas, sought information from the FCC OIG about ACP’s administration, citing ongoing debate about extending its life.
The FCC issued two additional notices of funding opportunity for outreach grants to promote the affordable connectivity program (see 2304100010). Applications for the up to $5 million national competitive outreach program are due by June 30 at 6 p.m. EDT. Applications for the up to $5 million tribal competitive outreach program are due by July 8 at 6 p.m. EDT, said a Thursday news release. “We’ve had great success so far -- with more than 18 million households enrolled," said Chairwoman Jessica Rosenworcel, "but we know there are many more households we can reach with help to get online and stay online."
The California Public Utilities Commission could shut out many wireless providers from participating in a proposed state LifeLine pilot if it proceeds with proposed rules, the National Lifeline Association (NaLA) warned. The CPUC received comments Tuesday on a proposed decision to approve two pilot programs to stack California LifeLine and federal affordable connectivity program (ACP) benefits (docket R.20-02-008). Verizon cautioned the CPUC to allow “reasonable network management.”
The FCC Wireless Bureau gave broadband providers Charter Communications, Cox Communications and Starry a June 15 deadline for explaining their need to use an alternative to the national verifier system for verifying subscribers' eligibility to take part in the Affordable Connectivity Program, per letters (Charter, Cox and Starry) Wednesday. In the letters, the bureau also directs the three to confirm through the National Verifier the eligibility of their ACP subscribers approved via those companies' alternative processes. "We remain concerned that alternative verification processes, although allowed by the law, may result in improper enrollments," potentially resulting in ACP waste, fraud or abuse, the bureau said.
Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., and ranking member John Thune, R-S.D., said during and after a Thursday hearing they’re forming a USF-focused task force to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities. Senate Communications members cited several telecom policy matters that intertwine with the push for USF changes, including future funding for the FCC’s affordable connectivity fund and restoring the commission’s lapsed spectrum auction authority.
The GOP leads on the House and Senate Communications subcommittees were noncommittal in interviews before a Wednesday House Commerce Oversight Subcommittee hearing about what kind of modifications they would like for the FCC’s affordable connectivity program. Current estimates peg ACP as likely to exhaust the initial $14.2 billion in funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024, perhaps as early as Q1. The Commerce Oversight hearing highlighted partisan fault lines over how much Congress should modify the existing federal broadband funding apparatus.
Top Republican leaders on the House and Senate Commerce committees want the FCC's Office of Inspector General to review the commission's management of broadband money it received during the COVID-19 pandemic, saying in a Monday letter to acting IG Sharon Diskin "it's important to understand" the affordable connectivity program's "record to date" as they decide whether to back extending its life. They are seeking answers by June 1. The request came before two congressional hearings later this week on federal broadband spending and may provide further insight into whether there’s a consensus for making legislative changes to existing programs.