Affordable Connectivity Program (ACP)

A coalition of industry groups proposed allowing providers participating in the FCC's affordable connectivity program the option to provide an "average net rate charged" to households for each tier of supported services in each five-digit ZIP code as part of the program's mandatory data collection. It would allow the commission to determine "at a geographically granular level" how many households are receiving service "with no out-of-pocket expense" and the average price for households that are "subscribing to broadband services that are not fully covered by the ACP benefit," said the Competitive Carriers Association, CTIA, NCTA and USTelecom in a letter posted Wednesday in docket 21-450. The mandatory collection could include a monthly rate for "each ACP-supported service tier" and the number of subscribers in a ZIP code, they said. The groups asked the FCC to disclose its data "on an aggregate basis" and within ranges for speeds or monthly data allowance to maintain providers' and consumer privacy. The groups also asked that data be aggregated to a higher geographic level if fewer than three providers are "in a geographic unit."

The FCC established a database connection with the Department of Veterans Affairs' Veterans Benefits Administration to improve access to the affordable connectivity program and Lifeline for veterans. It will "enable automatic eligibility verification" for veterans receiving qualifying pension benefits, said a news release Wednesday. Veterans won't need to submit additional eligibility documentation to enroll in either program if their eligibility is automatically determined by the national verifier. The initiative will "help our Veterans more easily get affordable online digital benefits that can open doors to education, health care and job opportunities,” said Chairwoman Jessica Rosenworcel.

New York legislators could double down on a court-blocked state law that sought to require $15 monthly plans for low-income households. Assemblymember Brian Cunningham (D) plans to reintroduce his 2022 bill AB-10690 this January to require $5 monthly internet for low-income consumers, the Democrat said in an interview this week. Three ISP associations that sued New York over its previous affordability bill condemned the fresh attempt to lower broadband prices.

Communications Services for the Deaf asked the FCC to grant its petition to waive certain rules for the affordable connectivity program's outreach grants. The group sought a waiver to allow contractors of broadband providers to receive grants, telling an aide to Chairwoman Jessica Rosenworcel the prohibition "fails to consider the purpose or functions of the contracts," said an ex parte filing posted Tuesday in docket 21-450. CSD asked the FCC to also consider adopting a "more narrowly tailored rule" exempting "non-profit, disability-centered organizations that provide accessibility services to broadband providers."

The National Lifeline Association asked the FCC to revise the Lifeline program so it's "ready to support low-income households' broadband needs" before the affordable connectivity program ends. The FCC and Universal Service Administrative Co. "must also take responsibility for the National Verifier's failure" to prevent instances of waste, fraud and abuse, NaLA told Wireline Bureau staff and an aide to Commissioner Brendan Carr in separate meetings, per an ex parte filing Monday in docket 21-450. The group sought "more resources and standardized communications and escalation plans" to improve the Verifier and ensure transparency for consumers applying for the ACP benefit.

The FCC’s persistent 2-2 tie since the beginning of the Biden administration and the resulting dearth of partisan Democratic telecom policy actions will likely blunt the level of criticism Chairwoman Jessica Rosenworcel and the commission will initially face from House Commerce Committee Republicans during the next Congress if their party wins a majority in the Nov. 8 election, said ex-panel Chairman Greg Walden, R-Ore., and other observers in interviews. But Commerce GOP oversight of the FCC would likely ratchet up significantly if and when the commission returns to a 3-2 Democratic majority, officials said. Regardless, there will be a major emphasis on whether the FCC is abiding by the Supreme Court’s embrace of the "major questions” doctrine in its West Virginia v. EPA ruling (see 2206300066), officials said.

FCC commissioners approved 4-0 Thursday, as expected (see 2210240047), an order launching a notice of inquiry on the 12.7 GHz band. The agency also cleared a plan to extend USF support to eligible mobile and fixed carriers in Puerto Rico and the U.S. Virgin Islands and an NPRM addressing Stir/Shaken caller ID authentication standards. Chairwoman Jessica Rosenworcel acknowledged she had circulated an item focused on the 4.9 GHz band (see 2210260064).

House Commerce Committee Chairman Frank Pallone, D-N.J., pressed AT&T, Comcast, Verizon and 10 other major ISPs on reports “that some providers may not be adhering to the requirements” of the FCC’s Affordable Connectivity Program (ACP) and emergency broadband benefit (EBB) enacted during the COVID-19 pandemic. The other ISPs drawing Pallone’s scrutiny are: Altice, Charter, Cox, Dish Network, Excess Wireless, Frontier, Lumen, Maxsip, Q Link and T-Mobile. “These reports detail problems customers have faced, including either having their benefits initiated, transferred to a new provider, or changed to a different plan without their knowledge or consent,” Pallone said in letters to the 13 ISPs’ top executives. “Other customers have reported a delay in the application of the benefit or a requirement to opt-in to future full-price service, which has resulted in surprise bills that have been sent to collection agencies. There have also been reports of aggressive upselling of more expensive offerings, requirements that customers accept slower speed service tiers, and other harmful and predatory practices.” Congress “explicitly outlined requirements designed to prevent waste, fraud, and abuse, maximize the enrollment of eligible households, and ensure that consumers are protected in the process,” he said: “Importantly, Congress incorporated lessons learned in the emergency implementation of EBB to fully inform the creation of ACP, including by enhancing safeguards to preserve program integrity and ensuring that ACP would truly benefit consumers and not leave them vulnerable to predatory schemes or misleading practices.” Pallone wants information from the ISPs by Nov. 9 about their practices, including the number of beneficiaries they have signed up, the number of complaints they have received regarding the programs’ administration and their processes for resolving complaints. "We look forward to responding to the Chairman’s questions, and we remain committed to helping make broadband more affordable for millions of American households,” an AT&T spokesperson said. "Charter’s significant participation in the EBB and ACP programs has helped millions of families gain access to reliable and affordable, high-speed in-home internet; and builds on our broader, ongoing commitment to increasing connectivity by promoting broadband availability, adoption and affordability for all," a spokesperson said. Excess is "working diligently with government officials and other stakeholders to root out improper activities," a spokesperson said. The other ISPs didn’t comment.

Wisconsin officials promised Tuesday to take big strides to close the state’s digital divide. Local governments should engage with the state on plans for NTIA’s broadband equity, access and deployment (BEAD) program and do more to increase participation in the federal affordable connectivity program (ACP), said Wisconsin Public Service Commission Chairperson Rebecca Cameron Valcq at a partially virtual broadband forum co-hosted by NTIA and the Wisconsin PSC: “We cannot leave any part of our state behind.”

Industry groups asked the FCC to ensure the affordable connectivity program's annual data collection is "streamlined and efficient for the benefit of consumers and providers," per an ex parte filing posted Thursday in docket 21-450 (see 2207260070). NTCA, USTelecom, CTIA, NCTA and ACA Connects met with Wireline Bureau and Office of Economics and Analytics staffers. The groups said a subscriber-level collection "would run afoul" of the Infrastructure Investment and Jobs Act and be "difficult, if not impossible" to define the requirement. It would also "have a chilling effect among subscribers who do not wish to turn over their personal data," the groups said, suggesting the FCC collect aggregated data at the state level on price and subscription rates of ACP service offerings.