Affordable Connectivity Program (ACP)

NTIA “hit a major milestone” in getting every state and territory committed to participating in the agency’s broadband, equity, access and deployment program and digital equity program, said Administrator Alan Davidson during a National Urban League webinar Tuesday (see 2208170031). "The hard work begins” now as states put together their plans, Davidson said. “This is an all-hands-on deck moment,” he said: “We need everybody's help.” The agency is reviewing states and territories’ applications to “be able to start to fund their state planning grants next month,” said NTIA Director-Public Engagement Mark Colon.

Advocacy organizations and industry groups welcomed an FCC notice of inquiry seeking ways to expand access to the Lifeline and affordable connectivity programs for survivors of domestic and sexual violence (see 2207140055). Some sought additional flexibility in providing eligibility documentation for survivors, in comments posted Friday in docket 22-238.

The FCC’s report to Congress on the future of the USF, released Monday (see 2208150048), contained more questions than answers, industry experts said Tuesday. The 65-page report has few broad conclusions on the future of USF, declining to adopt competition as a separate goal or to set a separate deployment goal targeting mobile broadband. It weighs against assessing a fee based on broadband internet access service (BIAS).

With more than 13 million households now enrolled in the FCC’s affordable connectivity program, commissioners approved an order Friday establishing an outreach grant program to further boost participation (see 2207150063). Commissioners at the monthly meeting also adopted an order establishing a one-year pilot program to increase ACP enrollment among households receiving federal housing assistance and a notice of inquiry seeking comment on space innovation and operations.

Consumer advocacy organizations welcomed a draft order aimed at increasing awareness of and boosting enrollment in the FCC’s affordable connectivity program, highlighting the need for organizations on the ground to enroll hard to reach populations (see 2207150063). Commissioners during the agency’s meeting Friday will consider an outreach grant effort and a pilot program targeting households receiving federal housing assistance.

The National Lifeline Association asked the FCC to grant its petition for reconsideration and clarification of the Wireline and Enforcement Bureaus' authority to suspend an affordable connectivity program provider's participation and marketing of connected devices, in a letter posted Tuesday in docket 21-450 (see 2206160071). NaLA noted there was no opposition to its petition and said the "unenthusiastic participation" among providers offering a connected device is "likely because of unnecessary regulatory hurdles that have been erected, including the market value provision addressed in the petition."

California could risk losing broadband funding if it grants a consumer group petition to require low-cost broadband plans for everyone, ISPs warned this week. The California Public Utilities Commission received responses Monday in docket R.20-09-001 on advocates’ petition to modify an April decision on rules for the state’s $2 billion last-mile federal funding account (FFA). Industry also clashed with consumer groups, in reply comments in docket R.20-02-008, on how California LifeLine subsidies interact with federal programs.

The cable industry is incorrect that applying affordability metrics in California Advanced Services Fund is inconsistent with CASF statutory directions, said the California Public Utilities Commission in a revised draft order Thursday in docket R.18-07-006. Responding to concerns raised by the California Cable and Telecommunications Association, the new draft said “consideration of affordability impacts is consistent with the stated goal of Pub. Util. Code Section 281 ‘to encourage deployment of high-quality advanced communications services to all Californians that will promote economic growth, job creation and the substantial social benefits of advanced information and communications technologies…’” The CPUC previously rejected CTIA’s argument that affordability metrics apply only to rate-regulated communications services, the draft said. Communications companies have resisted California affordability metrics (see 2207110030). The CPUC plans to vote on the proposed decision Aug. 4 after delaying the item that had first been scheduled for July 14. Meanwhile in docket R.20-023-008, Verizon’s Tracfone slammed a proposed decision to reduce California LifeLine subsidies when total federal monthly support applied to a LifeLine plan is more than $9.25. Other companies also raised concerns with the item that could get a vote Aug. 25 (see 2207280059). The CPUC draft “limits consumer choice and harms consumer affordability in a manner that is contrary to the” Moore Universal Telephone Service Act, a 2021 California law, said the wireless Lifeline provider: The draft “would prohibit low-income consumers from maximizing the full breadth of federal and state Affordable Connectivity Program (ACP) and LifeLine support that carriers would use to help design unlimited wireless connectivity offerings at no cost.”

Charter Communications, like Comcast (see 2207280035), saw its broadband growth slow to a halt between Q1 and Q2. Charter ended Q2 with 28.26 million residential broadband subscribers -- up 54,000 year over year but roughly flat from the previous quarter. The sputtering growth had some analysts bearish. The two companies' broadband news "had a decidedly 'end of an era' feel," MoffettNathanson's Craig Moffett wrote investors.

The National Lifeline Association condemned a proposed decision by the California Public Utilities Commission to reduce California LifeLine subsidies when total federal monthly support applied to a LifeLine plan is more than $9.25. The CPUC may vote on the proposal at its Aug. 25 meeting (see 2207070048). The CPUC should reject the draft “and instead adopt an order that respects and empowers those needing vital broadband access by enabling them to combine California LifeLine, federal Lifeline and Affordable Connectivity Program (ACP) benefits so that they may choose more robust service plans that are only made affordable through the combination of these benefits,” NaLA commented Wednesday in docket R.20-02-008. The Infrastructure Investment and Jobs Act requires ACP providers to let households apply ACP to any internet service offered by providers, said the association: Under the draft, an ACP discount couldn’t be applied to a wireless service. CalTel and other small RLECs raised concerns that the proposal “overlooks the circumstances of rural providers.” The proposal’s “categorical exclusion of the [specific service amount] from plans that receive $25.48 in federal support is unsupported by the record and contrary to public policy,” they said. The CPUC proposal got support from The Utility Reform Network and Center for Accessible Technology, which jointly commented that the draft “discourages a profit windfall but facilitates robust plans for LifeLine subscribers.” The proposal doesn’t affect providers’ ability to comply with the FCC’s ACP order, the consumer groups said.