The Federal Communications Commission is getting a lot of help in deciding how to spend the $3.2 billion — and potentially much more — set aside by Congress in a December COVID-19 relief bill for an Emergency Broadband Connectivity Fund (EBB), as well as new pandemic-driven investment being teed up.

The FCC has been seeking input from stakeholders, since it was only given 60 days from when the bill became law at year-end to come up with rules and regulations to implement the fund.

Congress is requiring the agency to make all that money available for an internet service available at a $50-per-household discount ($75 on tribal lands).

ALSO READ: Jessica Rosenworcel Takes FCC Gavel

Not surprisingly, internet service providers are focused on making sure they can access as much of that money as possible. That means leveling the playing field with current participants in the FCC’s Lifeline low-income subsidy, to which the new congressional money is tied. Ninety percent of Lifeline participants are wireless carriers, NCTA–The Internet & Television Association VP and general counsel Steve Morris told the FCC at a roundtable on the new subsidy.

In virtual meetings with FCC staffers, ACA Connects, the NCTA, internet and competitive networks trade group INCOMPAS and WISPA (the wireless internet-service providers association) presented a united front in calling for flexible rules regarding “the specific service offerings that are available for the EBB program, the categories of households that may participate, and the verification processes that providers will use to qualify households.”

For its part, NCTA said the money should be available to as wide a pool of consumers as possible. It urged the FCC to make sure all providers, including broadband cable operators that have not been Lifeline participants, have an equal shot at the money, rather than giving current Lifeline participants a head start, and by minimizing administrative and implementation “burdens.”

One way that can happen, NCTA said, is by essentially preapproving the vast majority of NCTA members who took the FCC’s Keep Americans Connected pledge via their own existing low-income programs or launching new ones.

NCTA argues that for the new EBB program, the FCC should grant “automatic approval of an application for participation by a broadband provider with a pre-existing program,” such as Comcast’s Internet Essentials, rather than participating in Lifeline. The presumption is the low-cost broadband program’s verification process “qualifies as sufficient to avoid waste,
fraud and abuse,” which the FCC can review under objective standards to make sure that is the case.

Another cable broadband ask is that the FCC make sure participants can access a full list of participating providers since the subsidy can only be used for one provider, Comcast Essentials administrator Trinity Thorpe-Lubneuski told the FCC at the roundtable.

Commenters should likely be readying some of the same arguments. 

Rep. James Clyburn (D-S.C.) has said he will reintroduce a bill that would spend $100 billion to extend internet service to everyone in the country, and has pushed the White House to make that bill a part of any infrastructure package. 

If the most recent COVID-19 relief bill passes as currently written, the commission will have billions more in broadband dollars to give out, targeted to schools and libraries.

One thing is clear: The broadband subsidy spigot appears to be opening wide. 

WISPA, which represents wireless internet service providers has come up with an estimate of how much it has cost its members to Keep Americans Connected over the life of the FCC-prompted voluntary pledge that they do so during the pandemic. 

Over 750 ISPs agreed not to cut off customers for nonpayment, to waive late fees and to offer free WiFi hotspots to anyone who needed them. 

FCC's Pai: Congress Needs Take Up Keep Americans Connected Pledge 

That WISPA accounting comes as Congress is contemplating compensating ISPs to keep Americans connected beyond the June 30 pledge's end date, something FCC chairman Ajit Pai applauds and said the FCC will work with Congress on such an initiative. He also asked ISPs to continue to keep nonpayers on the sub rolls past that date via deferred payment plans. 

In fact, it was the FCC that reached out to WISPA to get a sense of how much it was costing, according to a source.

Pai told the Senate at an oversight hearing this week that Congress should take the opportunity to "provide funding in July to help ensure that Americans have continued access to broadband and telephone services."  

According to WISPA, which polled its members on June 23, the average cost was over $30,000 per operator. 

That was based on an average sub count of 1,500. The costs broke down this way: $25,000 to cover nonpayment; $3,200 in waived late fees, and $4,500 in free WiFi. 

While the connectivity pledge technically ends June 30, a WISPA spokesperson said its members, who are connected to their local communities, would make decisions on a case-by-case basis with an eye toward erring on the side of tolerance and keeping people connected.

Sen. Jerry Moran (R-Kan.) expressed concerns about whether and how Congress could compensate internet service providers for their contribution to COVID-19 relief--in the form of investment in and payment relief for their customers via the Keep Americans Connected pledge. 

That came in a Senate Appropriations Subcommittee hearing on FCC spectrum auction oversight, at which FCC Chairman Ajit Pai.  

FCC Chairman Ajit Pai said the FCC would be happy to work with Congress on a way to compensate ISPs, particualrly smaller, rural carriers, for the lost revenue due to their pledge not to pull the plug on nonpaying customers during the pandemic. 

The FCC adopted its connectivity pledge March 12, then extended it to June 30. Virtually all the major ISPs and many of the smaller ones--over 750 in all--signed on to that pledge. 

Specifically, they pledged to: 

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;   

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and  

(3) "open WiFi hot spots to any American who needs them." 

Moran asked what the cost to ISPs had been of waived late fees and payments, and whether there was any plan for them to recoup that money, particularly the smaller ISPS, essentially small businesses, who were also suffering economic issues during the pandemic.   

Pai said he had had conversations with companies and associations that the pledge "can be a hardship." He said he did not have numbers for lost revenues, but would be happy to work with Congress to find a funding vehicle, though he suggested that could be for "continuing" those connectivity commitments. 

He said he would defer to Congress on the appropriate amount and vehicle for such compensation, but offered his FCC team to work on it with them. 

Moran asked if the FCC had anticipated this would just be a payment "pause," after which customers would be expected to pay when they could? 

Pai agreed it was a "pause," but what the companies did afterwards would be up to them. He said the FCC's focus was in keeping connectivity. 

RCN has joined other broadband providers in voluntarily extending its COVID-19 related connectivity pledge to June 30. 

Related: Comcast Extends Connectivity Pledge

FCC chairman Ajit Pai proposed the Keep Americans Connected Pledge on March 13 and more than 700 ISPs agreed to keep it until May 13. Pai last week asked them to extend it to June 30. 

RCN originally signed on April 6. 

RCN's pledge: 

1. "RCN is offering free internet and WiFi for 60 days to all qualifying low-income households, especially students in low income households who do not already subscribe to the company's internet service and who enroll in the Internet First program. 

2. "RCN will not terminate service to any residential or business customer because of their inability to pay their bills due to disruptions caused by COVID-19. Customers can reach out to make special arrangements to keep services active." 

3. "RCN will waive any late fees that any residential or small business customer might normally incur because of their economic circumstance related to COVID-19." 

"Now, more than ever, keeping people connected is a critical priority," said RCN COO Chris Fenger. 

Related: Cox, Altice Extend Pledge

RCN serves customers primarily in Boston, Chicago, Pennsylvania (Lehigh Valley), New York City, Philadelphia and the District of Columbia. 

FCC chair Ajit Pai has made it official. He has extended the FCC's voluntary Keep Americans Connected pledge until June 30. 

It was one of the worse-kept secrets since a host of major players had been announcing they were extending their pledges to June 30, and one even signaled it was the FCC's new pledge, which it was/is. 

Related: T-Mobile Extends Connectivity Pledge

That is because the chairman got on the phone with ISPs earlier this week to relay his request for the extension. While the national stay-at-home directive is being lifted today (April 30), states are following their own schedules for allowing folks back to work and to gather, though with social distancing. 

Related: Comcast Extends Connectivity Pledge

Pai said Thursday (April 30) that ISPs representing the "vast majority" of broadband and phone subs have already agreed to the extension. 

Back in March, Pai asked ISPs to pledge, for the ensuing 60 days, "to (1) not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic; (2) waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and (3) open their WiFi hotspots to any American who needs them." 

Related: Cox, Altice Extend Pledge

But that was back when President Trump was signaling the economy might open back up in Mid-April, which did not happen.  

The FCC has also been extending various waivers as it became clear the new abnormal would be around for a while longer. 

Related: FCC Is Monitoring Compliance with Pledge 

“Hundreds of providers have stepped up to the plate to keep Americans connected to communications services in this time of need,” said the chairman. “This includes the largest and some of the smallest providers across the country. I salute them for making broadband available to Americans who increasingly rely on it for work, school, healthcare, and communicating with loved ones. And given our nation’s current situation, I’m urging these companies to extend these important offerings—uninterrupted service, waiving of late fees, and continued availability of WiFi hotspots—until June 30." 

Related: Verizon Extends Connectivity Pledge

While the FCC encouraged all ISPs to extend their pledges, it recognized that some providers, particularly smaller ones and in rural areas, may not be able to do so due to "financial challenges." 

Related: AT&T Extends Connectivity Pledge

The FCC asked them to contact the FCC to let them know they were opting out.

“All ACA Connects members have gone above and beyond their normal business practices in past months to keep their customers and communities connected during the COVID-19 emergency, and for many this included taking the FCC’s initial pledge," said Matt Polka, president of ACA Connects, which represents those smaller, often rural, ISPs. "ACA Connects members, who typically live in the communities they serve and have family and friends as customers, are guided by their hometown American values.

“They have always stuck to this path, and they will continue to do so, which for many includes continuing to abide by the FCC pledge. At the end of the day, all ACA Connects members will be looking out for their customers and communities, consistent with their long-standing practices and values, not only until June 30, but also far beyond," said Polka.

Mediacom Communications joined most other cable and telco operators in extending programs aimed at assisting consumers during the COVID-19 pandemic through June 30.

Mediacom joined several other cable and telco operators in extending its pledge to the Federal Communication Commission’s “Keep Americans Connected” program, agreeing not to disconnect broadband customers for nonpayment during the pandemic, waiving late fees and making WiFi hotspots available to the public. In addition, Mediacom said it has extended other coronavirus-related initiatives, like:

• Offering the Mediacom Connect2Compete low-cost Internet program free for 60 days to new qualifying families;

• Extending the pricing of Mediacom’s Access Internet 60 service to new customers at $19.99 per month for 12 months (currently retails for $29.99 per month);

• Pausing monthly data allowances across all Mediacom Internet service tiers;

• Providing complimentary access to all Mediacom Xtream WiFi Hotspots.

“The Coronavirus pandemic has forced schools across the nation to close their facilities and quickly implement online learning programs,” Mediacom’s EVP of Operations John Pascarelli said in a press release. “By extending these initiatives through June 30th, Mediacom hopes to help students, teachers and administrators safely and successfully finish the 2019-20 school year.”

As the likelihood that the bulk of the country will be able to return to work and school before the end of May becomes less of a reality, Cox Communications and Altice USA have joined other cable operators and telcos in extending their commitment to the FCC’s "Keep Americans Connected" pledge through June 30.

The FCC first proposed the pledge in March, and most broadband providers across the country signed on, agreeing not to disconnect broadband customers for non payment during the COVID-19 pandemic, waiving late fees and opening WiFi hotspots to the public.

Cox and Altice USA are the latest to renew their commitment to the pledge -- Comcast, AT&T and Verizon Communications also have committed through June 30. In addition, Cox said it would extend existing offerings to provide support for customers in communities in greatest need.

“From our continued support of the FCC’s initiative to the extension of our other relief offerings, our focus remains on ensuring our customers stay connected and have the speeds they need to work and learn from home,” Cox CEO Pat Esser said in a press release. “We do not want our customers to worry about losing essential services during this time of need.”

In addition, Cox is extending previously announced relief offerings to provide continued support and relief for customers and communities in greatest need.

Cox is also offering through July 15:

• Free Connect2Compete service, Cox’s low-cost internet product for families with school-aged children who are enrolled in low-income assistance programs. Customers must sign up before May 15 to qualify. All new customers that have enrolled since March 13 will receive free service through July 15.
• Upgraded speeds of 50 Mbps download for residential customers in the company’s Starter, StraightUp Internet and Connect2Compete packages.
• For those tiers, free Cox Complete Care phone and remote desktop support for residential customers providing assistance for loading new applications they may need to use during this time like online classroom support applications and web conferencing services.

Residential customers can still take advantage of a $19.99 offer for new Starter internet customers through May 15, which includes a temporary boost up to 50 Mbps download speeds, no annual contract or qualifications to help low income homes and those impacted from coronavirus challenges, like seniors and college students.

Altice USA signed on to the Keep America Connected pledge in March, and said it also will extend its participation through June 30. Earlier, Altice USA extended its free student broadband and WiFi offers through the 2019-2020 school year. 

T-Mobile said late Monday (April 27) that it was also extending its connectivity pledge to the FCC until June 30. 

With the pandemic still in full swing and some states remaining in social distancing, semi-closedown mode until June, T-Mobile is joining Verizon,Comcast and AT&T in announcing it will extend its pledge, due to expire May 13, until the end of June. 

Related: The Latest on COVID-19's Impact on Industry

FCC chair Ajit Pai back in March asked ISPs to take the Keep Americans Connected pledge, which was initially for 60 days.  

A spokesperson declined to say whether the chairman had asked the ISPs to extend the pledge, but the fact they were all picking the same date, and Verizon's suggestion in its announcement that it was the FCC's new pledge, signaled that was likely the case. 

Look for other ISPs to extend their pledges--more than 700 signed the first one. 

The pledge is to: 

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;  

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and  

(3) "open its WiFi hotspots to any American who needs them." 

It appears that the FCC is encouraging ISPs to extend their pledge to keep subs connected, even if they can't afford to pay, during the pandemic. 

Following Verizon and Comcast's announcements that they were extending the pledge from mid-May to June 30, AT&T said it was on board as well. 

Verizon suggested that it was the FCC's new pledge, but a spokesperson for FCC chairman Ajit Pai had no comment on whether the FCC had urged the extension to June 30. 

Pai asked ISPs to sign the Keep Americans Connected pledge, which was initially for 60 days.  

Look for other ISPs to extend their pledges--more than 700 signed the first one. 

The pledge is to: 

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;  

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and  

(3) "open its WiFi hotspots to any American who needs them."  

FCC chairman Ajit Pai's office had no comment on whether he had urged ISPs to extend the FCC's connectivity pledge from mid-May to June 30, but following Verizon's announcement it was extending its pledge to June 30, saying that it was the FCC's new pledge, Comcast announced that it, too, would extend the deadline, as well as offer unlimited data until that date at no additional charge. 

Comcast said that until that date: 

1. "No Disconnects and Waiving Late Fees: We will not disconnect a customer’s Xfinity Internet, Xfinity Mobile, or Xfinity Voice service, and we will waive late fees if they contact us and let us know that they can’t pay their bills during this period. Our care teams are available to offer flexible payment options or help find other solutions. 

 2. "Xfinity WiFi Free for Everyone: Xfinity WiFi hotspots in business and outdoor locations across the country will be available to anyone who needs them for free – including non-Xfinity Internet subscribers. For a map of Xfinity WiFi hotspots, visit www.xfinity.com/wifi. 

 3. "Pausing Our Data Plan: With so many people working and educating from home, we want our customers to access the internet without thinking about data plans. While the vast majority of our customers do not come close to using 1TB of data in a month, we are pausing our data plans to give all customers unlimited data for no additional charge." 

Pai asked ISPs to sign the Keep Americans Connected pledge, which was initially for 60 days. 

Comcast also said it would extend for another 30 days its complimentary service to new customers of its Internet Essentials low-income broadband plan, which usually costs $9.95 per month. 

“These extended measures will continue to keep Americans safe and ensure that households are equipped for students to learn and stay informed at home as the nation copes with this unprecedented disruption to our daily lives,” said Dave Watson, Comcast Cable CEO, in a statement. “Our services have never been more important, and we’re doing everything we can to keep people connected to the internet.”

Verizon is extending its connectivity pledge from mid-May to June 30. Look for other carriers to follow suit. 

That means it will "neither terminate service nor charge late fees to our postpaid wireless, residential, and small business [50 lines or fewer] customers that notify us of their inability to pay their bills due to disruptions caused by the coronavirus pandemic." 

Back in March, FCC chairman Ajit Pai asked ISPs to sign the Keep Americans Connected pledge, which was initially for 60 days. 

Verizon says it was signing a new FCC pledge but a spokesperson said it had made the decision on its own to continue keeping the COVID-19 lines of communications open.  

An FCC spokesperson had no comment on whether Pai was officially asking ISPs to extend the pledge, though it would not be a surprise if he were. 

Related: FCC Is Monitoring Compliance with Pledge 

Pai talked with broadband service providers and trade associations on March 12 and asked them, "in order to ensure that Americans do not lose their broadband or telephone connectivity as a result of these exceptional circumstances," to the following for at least the next 60 days:  

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;  

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and  

(3) "open its WiFi hotspots to any American who needs them."  

Over 700 ISPs signed on. 

FCC chair Ajit Pai says the FCC is committed to holding ISPs to their Keep Americans Connected pledge to keep subs connected during the COVID-19 pandemic.

At the chairman's press conference Thursday (April 23) following the open meeting teleconference, Pai hailed the pledge signers, including for going beyond the pledge, and said he had gotten a "ton of positive feedback" about the pledge.

But Pai was asked about how the FCC would enforce the pledge, which has been signed by more than 700 ISPs, in response to any complaints about noncompliance. The FCC's authority of broadband access was mostly deeded to the Federal Trade Commission when it reclassified internet access as an information service.

Related: ISPs Take Pai Connectivity Pledge

Pai said he has been personally working with the FCC's Consumer and Governmental Affairs Bureau to "make sure that providers are following through with the commitments that they made"--it is voluntary, so not something the Enforcement Bureau can enforce. But he also said he would use every tool in the toolbox, if necessary, to enforce it, which could include referring anyone who did not keep their pledge to the Federal Trade Commission, with which it has a memorandum of understanding.

He said that, as the FCC did with the issue of robocalls, he stands ready to work with the FTC on the pledge enforcement.

Pai talked with broadband service providers and trade associations last month and asked them, "in order to ensure that Americans do not lose their broadband or telephone connectivity as a result of these exceptional circumstances, to agree to the following for at least the next 60 days:

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and

(3) "open its WiFi hotspots to any American who needs them." 

The FCC continues to track the signatories to FCC chairman Ajit Pai's Keep Americans Connected Pledge, a number that keeps growing along with the number of confirmed cases of coronavirus. 

The commission said Wednesday (March 25) that the total number of ISPs who have taken the voluntary pledge is now 580. 

That pledge is to: 

(1) "not terminate service to any residential or small business customers because of their inability to pay their bills due to the disruptions caused by the coronavirus pandemic;  

(2) "waive any late fees that any residential or small business customers incur because of their economic circumstances related to the coronavirus pandemic; and 

(3) "open its WiFi hotspots to any American who needs them." 

Many ISPs have gone beyond that pledge to take their own additional actions, which Pai continues to praise and promote. 

In announcing the new numbers, the FCC pointed to various such add-ons, including Cable One for allowing unlimited data for 30 days and GCI and Atlantic Broadband for offering free entry level plans through May. 

Related: Congress Strikes Deal on Massive Coronavirus Bill

“I’m pleased to see that more and more providers are signing on to show their commitment to their customers," said Pai. "And many of these companies have gone even further.... These actions are helping many Americans transition to telework, telehealth, and remote learning.” 

Internet-service provider efforts to help close the digital divide and homework gap in the face of a pandemic that will require a new, remote normal have not closed the Washington, D.C., political divide over the treatment of deregulated ISPs.

Calls from Congress for emergency action have had a partisan cast. Letters from the House and Senate, signed only by Democrats, combined requests for price breaks and free service with invocations of regulatory gaps and industry failings that, they argued, the pandemic has exposed.

For example, a story in The Washington Post said that educators complaining about students lacking broadband raised the question “of whether the U.S, government and the telecom industry should have done more to cure the country’s digital divide — well before a pandemic gripped the nation.”

FCC Democrats, led by commissioner Jessica Rosenworcel, have long argued the agency and carriers weren’t doing enough to close the digital divide and the homework gap.

One suggestion from critics of the FCC’s deregulation of internet access is that the reason chairman Ajit Pai had to “make” the ISPs sign a “Keep Americans Connected” voluntary pledge not to pull the plug on subscribers that could not pay their bills, temporarily waive late fees and open their WiFi hotspots was that the agency gave away its authority over broadband Pai’s deregulatory fervor.

Tech news and opinion site website Ars Technica, a frequent Pai critic, headlined a story “After Deregulatory Blitz, FCC Scrambles to Prevent ISP Abuse During Pandemic,” suggesting that it was the elimination of network-neutrality rules that required Pai to pressure the ISPs into helping out. A spokesperson for Pai declined to comment.

One Democratic senator not afraid to give ISPs credit for their offerings was Sen. Mark Warner (D-Va.), one of the signatories to the Senate letter. Following the pledge and a string of announcements from ISPs about the resiliency of their networks and their efforts to keep people connected, and connect more people, Warner said in a public statement: “I’m pleased to see companies committing to expanding broadband access for students who may not have it so that their educations are not completely disrupted during school closures.” Though he did attribute the action to response to his letter, he, too, was getting political mileage out of the ISP move.

For their part, House Energy & Commerce Committee Republican leaders highlighted what the private sector has done to ensure Americans have "vital internet services" during the coronavirus pandemic. They hailed the Pai pledge and praised ISPs for their numerous individual efforts, saying it was “a tremendous opportunity to work in a bipartisan way to improve connectivity issues.” No Democrats joined in that statement.

Comcast Cable president and CEO Dave Watson, in announcing the cable operator’s ongoing efforts, suggested it did not take government praise or prods to do the right thing in the current crisis.

“Our employees also live and work in virtually every community we serve, and we all share the same belief that it’s our company’s responsibility to step up and help out,” he said.

ISPs Enter Virus Fight

In addition to the FCC’s “pledge,” here are some of the FCC and ISP efforts, both before and after legislators weighed in, efforts Republicans were praising and Democrats were suggesting, while good, were not enough:

• The FCC provided temporary telework waivers to help American Sign Language interpreters provide video relay services to the deaf and hard of hearing and allows T-Mobile to use additional spectrum contributed on a temporary basis by Comcast, Dish and others.

• AT&T is paying to set up a “one-stop” resource center to support the State Educational Technology Directors Association (SETDA), which is developing distance learning tools for parents, teachers and schools.

• Cox Communications and Comcast relax their data usage overage charges for all tiers for the next 60 days.

• Verizon Communications pledged to boost capital spending by $500 million this year to speed 5G and “help support the economy during this period of disruption.”

• Various ISPs offered free broadband to low-income households without it for 60 days, with no obligation to continue the service after that time.

• Various ISPs boosted broadband speeds for no extra charge.