The outlook for the U.S. government’s Affordable Connectivity Program (ACP) remains terminal, with none of the multiple late-hour efforts in Congress intended to replenish funding for the depleted program appearing close to achieving that goal.

Introduced in December 2021 as a way to help low-income Americans afford internet, the subsidy program has been on partial rations since May 1 and will officially run completely out of money on May 31, unless Congress acts to save it.

The cancellation of the ACP, which comes at a time when the U.S. broadband industry is already bleeding customers, with Comcast Cable president and CEO Dave Watson telling investors Tuesday to expect increased customer attrition in the second and third quarters. 

On a consumer level, the ACP’s sunset could leave more than 23 million U.S. homes paying up to $40 more each month for internet service, or canceling their service altogether.

And, according to a White House fact sheet, nearly half of ACP subscribers have historically been military families, with seniors, African Americans and Latinos also relying on the service in disproportionately higher rates.

In the past week, two new proposals have surfaced to help refund the program, which is now solely issuing partial payments: one an amendment for an appropriations bill enacted in March, which would include further funding for the ACP; and another that offers a significantly pared-down version of the monthly subsidy.

The latter proposal, introduced Monday by Rep. Brandon Williams (R-N.Y.), also provides that all households enrolled in the program will remain eligible for 180 days after the bill’s passage, before having to re-enroll in the ACP, this time through the National Verifier or National Lifeline Accountability Database in order to combat fraud.

According to Williams, the funding for H.R. 8466 would come entirely from existing federal funds, creating no additional taxpayer burden.

But text for the full bill has yet to be released. And with just one co-sponsor — Rep. Anthony D’Esposito (R-N.Y.) — it’s highly unlikely that, if passed, it could provide a solution before vulnerable Americans are impacted by the cancellation of ACP aid.

Meanwhile, Rep. Yvette Clarke (D-N.Y.) introduced the ACP Extension Act in January, a bill to fund the program to the tune of $7 billion, with the most bipartisan support of any ACP action item.

Despite its 230 co-sponsors (technically enough support to pass the House), the bill has stalled on the House floor.

Additionally, a discharge petition filed last month to vote on the bill without the support of House Speaker Mike Johnson failed to receive the necessary absolute majority to bring it to vote, leaving the status of the ACP Extension Act uncertain.

In addition to Congressional efforts to save the bill, Charter’s Spectrum Mobile brand is offering a free mobile line for one year for home internet customers who are losing their ACP benefits.

That’s in addition to a buyout plan, which offers up to $2,500 for customers who switch to Spectrum Mobile and purchase at least three lines.

“Our new phone buyout program is designed to help customers switch from the steep costs associated with other mobile providers,” Sharon Peters, Charter executive VP and chief marketing officer, said in a statement.  

While no single program can replace the benefit of the ACP, if it expires, there are a variety of local and state subsidies, and discounted plans that can help those customers struggling with the additional financial burden.

Lifeline, a federal subsidy that provides $9.25 a month to low-income households for internet or cellphone plans is available to individuals with an income totally 135% of federal poverty guidelines or less.

Customers can also receive Lifeline support if they are enrolled in Medicaid, Supplemental Security Income, Federal Public Housing Assistance, Veterans Pension and Survivors Benefit or the Supplemental Nutrition Assistance Program.

Michael Powell, president of NCTA-The Internet & Television Association and former Federal Communications Commission chair, will testify December 13 at a Senate Communications Subcommittee hearing on "Ensuring Solutions to Meet America's Broadband Needs."

The hearing is being convened by Communications Subcommittee Chair Sen. Ben Ray Luján (D-N.M.).

The hearing will look at the general availability of broadband and the effort to close the broadband accessibility gap, with a focus on rural, tribal and low-income areas.

Also testifying will be Jonathan Spalter, president of USTelecom, Angela Siefer, executive director of the National Digital Inclusion Alliance, and Kimball Sekaquaptewa, chair of Connect New Mexico Council.

"This hearing will examine ongoing and past efforts within the public and private sectors to bring affordable, resilient and secure broadband to all communities," Luján's office said. ■

The White House has released an update on its massive Infrastructure law, including the $65 billion earmarked for internet access, and it includes a new metric for broadband access and the suggestion that it has almost solved the affordability issue.

In each of the state update internet sections, the White House talks about the lack of internet in terms not only of access to broadband, but according to how many residents of each state “do not have an internet subscription.”

In Alabama, for example, it says “nearly 32% of Alabamians do not have an internet subscription,” rather than the more traditional metric of how many people have service from, say, at least one provider at the current definition of high-speed (25 Megabits per second upstream and 3 Mbps downstream).

Also: White House Touts Affordable Broadband Subsidy

For Virginia, that figure is nearly 21% without a subscription; for California, 15%; and so on.

The White House has made it clear that availability entails more than access and includes affordability, competition, access to information about the value of broadband and training in how to use it and service quality.

As to affordability, the White House promoted its partnership with industry to bring prices down to zero: "The Biden-Harris administration is providing further cost savings by working with internet providers to offer high-speed internet plans that are fully covered by the Affordable Connectivity Program — meaning most eligible households can now get high-speed internet without paying a dime."

Under Biden's Affordable Connectivity Program, low-income residents can apply for up to a $30-per-month subsidy — down from $50 per month in the Emergency Broadband Benefit (EBB) — with residents of tribal lands getting up to $75. There is also a one-time $100 equipment subsidy to apply to laptops, desktops or tablets, but not phones. ▪️

Global spending on broadband access infrastructure and customer premises equipment is expected to drop 7% in 2020, dipping to $11.4 billion, research company Dell’Oro Group said Tuesday.

A report issued in January by Dell’Oro Group predicted only a 5% decline.

On the cable side, the steep pandemic-fueled increase in consumer broadband demand has forced operators to seek immediate capacity increases through the purchase of additional DOCSIS licenses. But pursuing these node-split programs has come at a cost, said Dell’Oro Group Senior Research Director Jeff Heynen.

“In most cases, cable operators have used the software tools available as part of DOCSIS 3.1 to ensure adequate bandwidth for all subscribers,” he wrote. “In other cases, operators have purchased additional DOCSIS licenses as part of accelerated node split programs to address systems with the greatest need. But all those investments in existing CCAP platforms have resulted in postponements of strategic DAA projects.”

Dell’Oro expects the global broadband access business to pick up by 5% in 2021.

The firm believes that the pandemic will influence operators over a five-year period to increase spending—it has upped its five-year compound annual growth rate (CAGR) projection from -2% in January to -0.9% in its latest July report.

“This improvement might seem counterintuitive, given the worldwide impact of the COVID-19 pandemic,” Heynen wrote. “However, the pandemic and its resulting orders to stay at home for work and education, have shown the world just how critical adequate broadband access is to the global economy. As a result, global initiatives to expand and improve broadband access are either underway or will be shortly. Nearly all service providers have said that they have reached their planned capacity utilization rates for the entire year in the first half of 2020. Thus, they will need to expand this capacity to maintain comfortable operating levels.”

Dell’Oro also increased its CAGR projection for passive optical network (PON) technology from 0% to just under 1%.

“Although China’s ONT volumes are coming down from the peak years of 2017 and 2018, additional growth is expected from the rest of the world—particularly North America and Western Europe,” Heynen said. 

Global spending on broadband access infrastructure and customer premises equipment is expected to drop 7% in 2020, dipping to $11.4 billion, research company Dell’Oro Group said Tuesday. 

A report issued in January by Dell’Oro Group predicted only a 5% decline.

On the cable side, the steep pandemic-fueled increase in consumer broadband demand has forced operators to seek immediate capacity increases through purchase additional DOCSIS licenses. But pursuing these node-split programs has come at a cost, said Dell’Oro Group Senior Research Director Jeff Heynen. 

“In most cases, cable operators have used the software tools available as part of DOCSIS 3.1 to ensure adequate bandwidth for all subscribers,” he wrote. “In other cases, operators have purchased additional DOCSIS licenses as part of accelerated node split programs to address systems with the greatest need. But all those investments in existing CCAP platforms have resulted in postponements of strategic DAA projects.”

Dell’Oro expects to the global broadband access business to pick up by 5% in 2021. 

The firm believes that the pandemic will influence operators over a five-year period to increase spending—it has app its five-year compound annual growth rate (CAGR) projection from -2% in January to -0.9% in its latest July report. 

“This improvement might seem counterintuitive, given the worldwide impact of the COVID-19 pandemic,” Heynen wrote. “However, the pandemic and its resulting orders to stay at home for work and education, have shown the world just how critical adequate broadband access is to the global economy. As a result, global initiatives to expand and improve broadband access are either underway or will be shortly. Nearly all service providers have said that they have reached their planned capacity utilization rates for the entire year in the first half of 2020. Thus, they will need to expand this capacity to maintain comfortable operating levels.”

Dell’Oro also increased its CAGR projection for passive optical network (PON) technology from 0% to just under 1%. 

“Although China’s ONT volumes are coming down from the peak years of 2017 and 2018, additional growth is expected from the rest of the world—particularly North America and Western Europe,” Heynen said. 

Sen. Ed Markey (D-Mass.) has introduced a bill to boost Obama Administration era Global Connect initiative, including through additional funding for the United States Agency for International Development (USAID) and with the goal of boosting access to broadband in developing countries.

The DIGITAL AGE (Driving Innovation and Growth in Internet Technology And Launching Universal Access to the Global Economy) Act  would include encouraging global "dig once" policies, spectrum re-use and promoting various Internet values like lower costs, a free and open 'net and nondiscriminatory access.

The bill would direct the State Department, USAID and other relevant agencies--that would include the FCC--to work with other government, financial institutions and private industry to:

• "encourage a competitive market for investment and innovation in internet infrastructure and services;
• "ensure effective, efficient, and transparent spectrum allocation;
• "encourage internet infrastructure sharing;
• "improve the affordability of internet access devices;
• "promote the creation of public access facilities;
• "encourage integration of internet backbone and other infrastructure into existing infrastructure projects supported by the World Bank, the International Monetary Fund, USAID, the Millennium Challenge Corporation, and others, and;
• "encourage companies to adopt flexible policies infrastructure sharing and spectrum re-use."

Ajit Pai, the first Indian American FCC chair, this week at the Mobile World Congress in Barcelona struck a nonbinding agreement to coordinate with his opposite number in India on issues including accelerating broadband deployment and spectrum policy for mobile broadband.