Groups Foresee Potential Consumer Challenges With EBB-to-ACP Transition

With enrollment now open for the FCC’s affordable connectivity program and the transition from the emergency broadband benefit program underway, some consumer advocacy groups told us they're concerned that EBB-enrolled households could face a bill shock or lose their benefit entirely if required to affirmatively opt in to receive the new benefit. Several questions remain because the FCC hasn't issued rules for the new program and the higher subsidy amount is set to end March 1.

There may be “a lot of challenges on the consumer side,” said Public Knowledge Senior Policy Counsel Jenna Leventoff. It's "going to be confusing” for households whose benefit is reduced. Providers “need to make it very clear” that a household has the option to switch its plan or provider at any time, Leventoff said.

Most participating providers and consumer groups asked the FCC to establish an opt-out process and require that households receive notifications about the anticipated decrease in their monthly benefits (see 2112290038). Tribal households won’t have a change to their benefit or eligibility requirements. An opt-in rule for tribal customers in remote areas “can actually be a significant burden and those households would be better served if the commission were to forego the opt-in,” Lukas LaFuria telecom attorney David LaFuria said. But Free Press General Counsel Matt Wood told Chairwoman Jessica Rosenworcel's staff according to an ex parte letter Wednesday in docket 21-450 that the agency is "rightly concerned with the idea of allowing providers to rely on prior consent" from EBB to "count as sufficient for enrolling in ACP" given the benefits decrease and the larger number of service options available in ACP.

There’s a “legitimate fear” that “a lot of households” won’t transition from EBB to ACP if the FCC establishes an opt-in requirement, said Common Cause Director-Media and Democracy Program Yosef Getachew. Among the legislative changes from EBB to ACP is that providers must make all their plans available for the monthly discount, he said, so the question is how transitioning households can switch plans or providers that fit their needs.

The drop-off in enrollment rates could be “big” if households have to opt in, Leventoff said, or households could face bill shock if they must opt out and can’t afford the difference after the benefits decrease. The “biggest problem” is the subsidy drop, said New Street’s Blair Levin.

The FCC “continues to engage in conversations with all those in the [EBB] ecosystem … so participating households are aware of the upcoming changes and will know what to expect over the coming months,” emailed a spokesperson. That has included informational emails to outreach partners and providing guidance to providers about “their role in informing their customers about the transition,” she said, noting the Universal Service Administrative Co. “reached out directly to current EBB households across a variety of channels, such as email communications, phone calls and mailed notices, to make them aware of the transition.” Final ACP rules will also be released "before the end of January," she said.

The FCC needs to keep tabs on several things throughout the transition period, Getachew said, including making sure EBB households continue receiving the higher benefit amount and those households get notified about the anticipated changes. “A lot of it is going to have to fall on the providers,” Getachew said.

Ensuring households understand the new rules, benefit amount changes, and how that affects their current subscription plans are “my biggest worries,” said New America’s Open Technology Institute Policy Analyst Claire Park. “I’m hoping that providers are able to figure out a way to get that guidance to people quickly,” Park said, saying consumers shouldn’t be “shocked” by having to pay a larger amount after the transition.

Industry groups are confident about having to follow EBB rules until the FCC releases the ACP rules. ACA Connects is “optimistic” the FCC will “look favorably” on participating providers that are “exercising good faith and reasonable judgment in following the best available guidance during this interim period,” said Vice President-Regulatory Affairs Brian Hurley: “We appreciate the [Wireline Bureau’s] guidance to providers on navigating this initial phase of ACP.” NCTA “supported the FCC decision to apply EBB rules during the interim period and will continue to work with the commission to ensure the transition is as seamless as possible for consumers and providers,” emailed a spokesperson.