More Provider Participation Expected in ACP Than EBB

Provider participation in the FCC’s affordable connectivity program is likely to be at a higher level than for the emergency broadband benefit program, we’re told (see 2112090061). Some industry groups said more providers may elect to participate since the new program is designed to be longer term than EBB.

“We anticipate a smooth transition to the new program by those participating in the EBB now,” said a Wireless ISP Association spokesperson. There’s a “good possibility that even with changes in benefits, more participants will come to the table to make this program even more successful,” he said. There may be “higher levels of participation” among NTCA members in ACP than in EBB because of the “longer-term horizon,” said Senior Vice President-Industry Affairs Mike Romano. Some members chose not to participate in EBB because of uncertainty about the program’s duration, Romano said.

The Wireline Bureau instructed providers Thursday to rely on EBB rules until new ACP rules take effect. Those rules provide a “familiar framework for providers and consumers, having been adopted in February 2021 and governing the EBB Program since its launch on May 12,” the bureau said in a docket 20-445 order: “Congress was well aware of these rules, and we believe that -- except to the extent it specifically required changes to them -- it would be reasonable to conclude that as an interim matter compliance with such rules would be appropriate until new rules are in place.” The order says providers didn’t have to provide initial data on enrollments by Saturday, as was required in a previous order. The bureau warns providers the FCC will continue to monitor waste, fraud and abuse during the transition period.

EBB providers Altice, Cox, Lumen, RCN and Frontier told us they will participate. Consolidated Communications will transition to ACP “in the coming months,” emailed a spokesperson. U.S. Cellular also plans to participate, said a spokesperson: "We are hoping the transition from EBB to ACP is seamless for customers and have advocated for no 'opt-in' FCC requirement." Starry is “working hard on our end to ensure a seamless transition for all our EBB subscribers so they stay connected” through ACP, emailed a spokesperson.

“We are all doing more from home and we’re working hard to help our customers navigate,” emailed a Lumen spokesperson: “We strongly support closing the digital divide and will continue to do our part.” Frontier “will be working with households, consistent with FCC guidance, on making it a seamless transition from EBB to ACP,” emailed a spokesperson. AT&T confirmed Thursday it and subsidiary Cricket Wireless will participate. T-Mobile said it will participate through Assurance Wireless, its primary Lifeline brand. Verizon, Comcast and Charter didn’t comment.

Windstream is sending direct mail and emails to EBB households about the transition, said a spokesperson. “Most of our customers who are currently participating won’t have any further action required. However, if they do, we will communicate any necessary steps to requalify,” he said.

WISPA “has an active members forum/group which has worked to implement the initial EBB, as well as prepare for the transition to the ACP,” emailed the spokesperson. The group’s public policy staff also is assisting members and “others in the WISP community” to “help them understand what is needed and to answer questions as they arise,” he said.

Some industry groups asked the FCC to establish a safe harbor for EBB providers transitioning to the new program because final rules are unlikely to be issued before ACP begins. NCTA, CTIA, and USTelecom said their members participating in EBB "need to know the obligations that will apply and have adequate time to bring their business practices into compliance with the rules" to "participate fully in ACP," in a letter to the FCC in docket 21-450. An FCC spokesperson said staff “has been and will continue to provide guidance to households and providers” during the transition.

“Ensuring a smooth transition to the new program will be key,” said CTIA Senior Vice President-Regulatory Affairs Scott Bergmann. The FCC “can make that process work better by providing ample time for providers to implement new requirements and affording a safe harbor for providers participating in the program today,” Bergmann said. Romano said one way the FCC can help providers transition is by not penalizing those that comply with EBB rules “in good faith” until the final ACP rules are adopted.

The “biggest difference” between EBB and ACP is that the new program is “no longer an ‘emergency program,’” emailed Fiber Broadband Association CEO Gary Bolton. Despite the lower subsidy amount, “the availability of lower-cost fiber broadband services" will increase and "we believe that this program will be successful in helping drive broadband adoption by those who need it most,” Bolton said. Enrollment for ACP, which offers a monthly broadband subsidy of up to $30 for nontribal households and up to $75 for tribal households, opened Friday.