Affordable Connectivity Program (ACP)

Apply emergency broadband benefit program rules to the affordable connectivity program until final rules are released, Comcast urged advisers to all FCC commissioners and staff in recent meetings, said a letter posted Monday in docket 21-450 (see 2112090061). It recommended a “true-up process” after the transition for EBB enrollees so providers can “seek full reimbursement.” Comcast backed allowing providers to perform “soft” credit checks on enrollees and applying a household’s initial ACP benefit “no later than the beginning of the subscriber’s first full billing period, rather than immediately."

T-Mobile representatives sought changes to rules for the FCC affordable connectivity program, in conversations with aides to Chairwoman Jessica Rosenworcel, Commissioner Geoffrey Starks and others at the commission. T-Mobile “expressed support” for FCC “efforts to implement ACP, which promises to bring the transformative benefits of broadband service to millions of households on a sustained basis,” said a filing posted Monday in docket 21-450. “To maximize consumer choice and innovation, the Commission should allow different brands or lines of businesses within the same legal entity -- not just different legal entities within the same corporate family -- to file separate election notices,” T-Mobile said. “Allow states to opt out of the National Lifeline Accountability Database for the purposes of ACP.” T-Mobile urged the FCC to allow enrollees in the emergency broadband benefit program to continue receiving benefits of up to $50 a month “until EBB funds are expended or March 1” and to “address the issue of what notification is required when an EBB provider decides not to participate in ACP.”

Top Republicans on the House and Senate Commerce committees pressed the FCC Monday for information on the agency’s response to the Office of Inspector General’s November report that some emergency broadband benefit providers were falsely claiming a child in a household attended a qualifying low-income school (see 2111220058). Commissioner Brendan Carr said he was “kept in the dark” about the OIG’s findings until the report’s public release (see 2111230067). OIG’s recent findings and past federal watchdog reports about “fraud and abuse” in other FCC programs “raise serious questions about” the commission’s “ability to oversee and manage its programs,” Senate Commerce ranking member Roger Wicker of Mississippi, House Commerce ranking member Cathy McMorris Rodgers of Washington and the GOP ranking members of the Communications subcommittees wrote FCC Chairwoman Jessica Rosenworcel. They noted a 2020 GAO report that said the FCC’s oversight of its E-rate program was “insufficient … to identify potential fraud risks” (see 2009160081). “The upcoming transition of the EBB” to the $14.2 billion affordable connectivity program enacted via the Infrastructure Investment and Jobs Act “provides further reason for concern,” the GOP lawmakers said. “Unlike other FCC subsidy programs, the ACP will be funded through appropriations, rather than Universal Service Fund contributions. We are concerned that the FCC may proceed with rules for a permanent ACP that do not adequately protect American taxpayers or best serve eligible households.” The lawmakers want Rosenworcel to explain by Jan. 7 when her office became “aware of fraud” in EBB, if the FCC has identified the providers that committed fraud and what actions the agency will take to “confirm the eligibility of current EBB recipients.” They also want to know whether Rosenworcel will seek comment on draft rules for ACP “from other commissioners and the public” and if the FCC will take steps to ensure “future enrollees” are eligible for the revised program. The FCC didn’t comment.

Ensuring there's no disruption of subscribers' broadband as they transition from the emergency broadband benefit program to the affordable connectivity program is critical, NCTA President Michael Powell told FCC Commissioner Geoffrey Starks, per a docket 21-450 posting Friday. Rather than making EBB-enrolled households opt into ACP, the FCC should default to EBB customers remaining in ACP unless they are no longer eligible or choose to opt out, Powell said. Many ACP implementation issues won't be solved before its Dec. 31 start, especially as the commission likely won't adopt final rules by then, he warned.

Providers, local governments and advocates welcomed FCC-proposed rules for the $14.2 billion affordable connectivity program, in comments posted Thursday in docket 21-450. Some raised concerns about potential implementation challenges as the agency shifts from the $3.1 billion emergency broadband benefit program and urged the commission to allow flexibility for EBB providers and enrolled households during the transition.

The FCC Wireline Bureau waived more emergency broadband benefit program rules as the commission transitions to the affordable connectivity program, in an order Wednesday in docket 21-450 (see 2111260015). The bureau waived the requirement that ISP offerings and standard rates be offered "in the same manner and terms" as offerings available Dec. 1, 2020, until final ACP rules are enacted, and the requirement that providers submit to Universal Service Administrative Co. that they were a broadband provider then, in each state where it planned to participate. The bureau released additional guidelines for the EBB-to-ACP move, including that the national Lifeline accountability database will close at 6 p.m. EST Dec. 30 "for administrative purposes" ahead of ACP's Dec. 31 launch.

Give providers participating in the affordable connectivity program "substantial flexibility" until at least April 1 for any requirements the FCC adopts in its final order on the program, Verizon told staff to Commissioner Geoffrey Starks, said a letter posted Tuesday in docket 21-450 (see 2111230058). It recommended the commission not adopt an opt-in requirement for households enrolled in the emergency broadband benefit program. The Infrastructure Investment and Jobs Act prohibits participating providers from "[requiring] the eligible household to submit to a credit check in order to apply the affordable connectivity benefit to an internet service offering,” to which Verizon noted "does not prohibit providers from simply performing a credit check or from using the results of a credit check for other purposes."

Require that affordable connectivity program providers apply the benefit only to "all plans that are presently offered to potential customers, not grandfathered plans," USTelecom CEO Jonathan Spalter told FCC Commissioner Geoffrey Starks and his staff, said a filing posted Monday in docket 21-450 (see 2111180067). Spalter said it's not "necessary" for providers to submit details of every plan that will be available and to allow "as much time as necessary" to transition from the emergency broadband benefit program.

Allow tribal households that qualified as Lifeline subscribers for the FCC emergency broadband benefit program to participate in the affordable connectivity program without needing to opt in, Smith Bagley urged Wireline Bureau staff, said an ex parte letter posted Tuesday in docket 21-450. Those households "will see no change in their benefit, nor their service offering, when [EBB] transitions to ACP" and "would find it much more difficult to execute an opt-in requirement than most others in the nation," Smith Bagley said. It also asked that "no fundamental changes" be made to the National Lifeline Accountability Database because providers can adjust discounts within NLAD and remove households that no longer qualify.

The FCC Wireline Bureau waived certain emergency broadband benefit program rules requiring an enrollment freeze and consumer notifications as the commission transitions to the affordable connectivity program, said an order posted Friday in docket 20-445 (see 2111230058). The rule, originally intended to "avoid claims volatility and to allow for more certain financial projections in the final months," required a freeze in EBB enrollments once the program's end date was announced. Waiving the rule "maximizes the time period" for enrollment during EBB's final weeks and "avoids unnecessarily limiting participation," the order said. The bureau also waived the 15- and 30-day consumer notice requirement that EBB is ending, given that enrolled households will continue receiving up to $50 monthly broadband subsidies during the 60-day transition to ACP, it said.