Continued uncertainty about the prospects for Senate confirmation of Democratic FCC nominee Gigi Sohn and its implications for ushering in a 3-2 Democratic majority are unlikely to be a major factor at a Thursday House Communications Subcommittee oversight hearing on the agency, lawmakers and other observers told us. Subpanel members instead plan to focus on the FCC’s successes since the beginning of 2021 and telecom policy items that lawmakers believe they can reach a bipartisan consensus on before the coming midterm election campaign. The partly virtual hearing will begin at 10:30 a.m. in 2123 Rayburn.
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
ACA Connects backed USTelecom's request for a 60-day extension of the April 15 deadline for affordable connectivity program providers to comply with the non-usage tracking rule, in a meeting with FCC Commissioner Nathan Simington and staff, said an ex parte letter posted Wednesday in docket 21-450 (see 2203230041). The group said its members face similar challenges in meeting the deadline. ACA Connects also asked the FCC to allow fixed broadband providers to follow the agency's 2011 enforcement guidance on reporting actual speeds and latency in the forthcoming consumer broadband labels.
The FCC Wireline Bureau wants comments by April 5 on AT&T's request for an additional 120 days beyond the April 15 deadline to apply the affordable connectivity program benefit to its AT&T Mobility and New Cingular Wireless postpaid mobile broadband plans, said a public notice Tuesday in docket 21-450 (see 2202110055).
The FCC Wireline Bureau wants comments by March 31 on separate petitions filed by USTelecom and Verizon on affordable connectivity program rules, said a public notice Wednesday in docket 21-450. USTelecom sought a 60-day extension for participating providers to comply with the program's non-usage tracking rule. Verizon sought a 60-day extension for its subsidiary Tracfone to prepare its systems to offer the monthly benefit for "certain prepaid mobile broadband services priced below $30 and above $30" (see 2203220051). It didn't seek additional time for plans priced at $30.
Big ISPs warned the California Public Utilities Commission that proposed price and speed requirements could discourage participation in a $2 billion last-mile federal funding account (FFA) required by the state’s $6 billion broadband law. Consumer and local government groups debated how best to prioritize funds in other comments posted Tuesday and Wednesday on a proposed decision (PD) up for vote at the commission’s April 7 meeting (see 2203020062).
Verizon subsidiary Tracfone's ability to offer the FCC affordable connectivity program monthly discount for all services "is a particularly heavy lift," the carrier said as it sought a 60-day waiver of the program requirement. Tracfone's systems "are not designed to apply a discount ... and then assess the remaining post-discount amount to the customer," Verizon said , in a petition posted Tuesday in docket 21-450. The provider "does not have that capability because it historically has not offered discounts." Tracfone would need "several weeks" to test those systems. Verizon noted Tracfone "has enrolled over 270,000 new ACP-eligible consumers" so far.
The California Public Utilities Commission may vote April 21 on a state LifeLine proposed decision to implement a 2021 law to require various LifeLine enrollment and recertification processes, and adopt other staff recommendations. The Monday proposal in docket R.20-02-008 would eliminate "use of a PIN for all renewals completed through database matching and for all participants with personal identification information on file as of the date the renewals suspension concludes," and "implement recertification without a Commission-issued PIN for participants without a database match or personal identification information on file by" Dec. 31, 2023. Also in the LifeLine docket Monday, Administrative Law Judge Stephanie Wang sought comment on a staff proposal on interaction among California LifeLine, federal Lifeline and the federal affordable connectivity program. Comments are due April 14, replies April 28. Wang asked if staff is right that the $30 ACP subsidy provides affordable wireless and broadband without needing a California LifeLine subsidy, and that minimum prices for wireline voice and broadband bundles meeting federal Lifeline minimum service standards “generally exceed” combined ACP, Lifeline and LifeLine support. Wang also wants feedback on other aspects of staff’s plan, including a proposal to use ACP subsidies to reduce state costs and use savings to expand access to voice-broadband bundles, and a suggestion to set a LifeLine specific support amount of zero dollars to wireless service plans that receive an ACP subsidy but keep the current SSA for wireline plans even if they get an ACP subsidy.
Emergency broadband benefit and affordable connectivity program spending often goes more toward upgrading existing wireline ISP subscribers’ services than toward bringing connectivity to the unconnected, ISPs and digital equity interests told us. The FCC didn't comment.
Industry and advocates asked the FCC for some flexibility in its affordable connectivity program outreach grants and to prioritize nonprofit organizations, in comments posted Thursday in docket 21-450. The FCC also sought comments on its proposed pilot program to boost enrollment among households in public housing communities and on how to determine eligibility for an up to $75 monthly benefit for households living in high-cost areas.
The National Lifeline Association asked the FCC Wireline Bureau to clarify that its and the Enforcement Bureau's authority to "suspend a participating provider's [affordable connectivity program] enrollments and hold participating provider funding based on the 'adequate evidence' standard is limited," said a petition for reconsideration and clarification posted Thursday in docket 21-450. The authority "should be a last resort to be invoked," NaLa said, asking that "minor infractions or improper payments" don't result in such a penalty. NaLa also sought reconsideration of the requirement that participating providers offering a connected device "provide price information for at least one of the analogous devices from a major retailer." It asked that providers be allowed to provide two retail prices from any retailer to substantiate their claim for market value.