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.
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.
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.
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.
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.
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 FCC Wireline Bureau warned providers participating in the affordable connectivity program against engaging in “improper enrollment tactics” identified by the Office of Inspector General in its March advisory on ACP and Lifeline-eligible consumers, said a public notice Friday in docket 21-450. Providers "must immediately stop using deceptive language, bring their application processes into compliance, and give consumers a choice as to which program benefit or benefits they wish to apply to their broadband service," the notice said. The bureau will refer any potential violations to the Enforcement Bureau and directed the Universal Service Administrative Co. to "conduct program integrity reviews" of enrollment and onboarding practices of Lifeline providers participating in ACP.
The transition from the FCC’s emergency broadband benefit program to the affordable connectivity program has been largely smooth for most providers, said Wireline Bureau staff and industry during an FCBA webinar Wednesday (see 2111230058). Some providers said it was challenging to meet the transition deadline, and they're now focused on increasing enrollment.
Next Century Cities and local officials told staff to FCC Commissioner Geoffrey Starks that officials are "facing challenges" when enrolling residents living in city housing authorities in the affordable connectivity program, per a filing Wednesday in docket 21-450. Some eligible households have "abandoned the entire application process if one phase was unsuccessful," they said. Louisville, Seattle and Baltimore officials sought "more specific detail about providers' lower cost tiers of service" and "better zip-based data" on enrollment by provider and subscription type for targeted outreach.
The Kentucky Public Service Commission won’t adjust the state USF surcharge or support levels due to uncertainty about the federal affordable connectivity program’s effect, the PSC said in a Monday order in case 2016-00059. Eligible telecom carriers participating in ACP should send a letter to the PSC by March 15 describing what plans they will offer Kentucky Lifeline customers, the total cost of their ACP offering, and how ACP and federal and state Lifeline support will be applied to eligible plans, it said. The PSC will open a review of Kentucky USF solvency by Feb. 1, 2023.
A "special focus" on connecting Black households "is warranted if we are ever going to close the digital divide," said FCC Commissioner Geoffrey Starks during a virtual event Tuesday. "Far too many Black Americans are on the wrong side of the digital divide," Starks said, and "we can no longer defer the hard work on digital equity." The Infrastructure Investment and Jobs Act included $2.75 billion for NTIA to establish digital equity and inclusion programs and language authorizing the FCC to spend some of its $14 billion affordable connectivity program (ACP) on outreach (see 2107280065).