Comcast's Now line of prepaid broadband, mobile and streaming services is a reply to fixed wireless' ongoing incursion in home broadband and "a well-considered response" to the looming end of the affordable connectivity program, GlobalData analyst Charles Garrett said Thursday. Comcast announced its Now line this week. Garrett said Now also is a move by Comcast to broaden its addressable market without cannibalizing its existing residential broadband subscriber base. He said Comcast's entry into prepaid wireless faces challenges as the U.S. prepaid marketplace is volatile and shrinking, with Verizon, AT&T and Dish Network losing a combined 547,000 prepaid subs in Q4 2023.
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.
"The sky's the limit" when considering Chinese capabilities for conducting digital attacks on critical U.S. infrastructure, since China switched from focusing on economic and political espionage to a strategy that can only be pre-positioning for attacks, Brandon Wales, executive director of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), said Wednesday. Also at a Semafor conference on digital infrastructure, Kathy Grillo, Verizon senior vice president-public policy and government affairs, said the lack of FCC auction authority could have significant ramifications in a handful of years for keeping up with growing data demands. Numerous conference speakers talked about AI’s potential and risks.
Affordable Connectivity Program Extension Act (HR-6929/S-3565) lead House sponsor Rep. Yvette Clarke, D-N.Y., told us she's cautiously optimistic ahead of the opening of a discharge petition Thursday to force a floor vote on the measure (H.Res. 1119). HR-6929/S-3565 proposes allocating $7 billion for FY 2024 to the ailing FCC connectivity program. Thursday marks the end of a seven-legislative-day waiting period before Clarke can begin collecting signatures on the petition, which would require backing from at least 218 members before becoming effective (see 2404100075). Republican observers, even those who support giving ACP stopgap money, are skeptical the discharge petition bid will succeed.
Broadband officials and experts Wednesday called for continued pressure to replenish the FCC's affordable connectivity program (see 2404100075). Some panelists during Next Century Cities' bipartisan tech policy conference also urged community leaders to engage with their state broadband offices as NTIA approves states' plans for the broadband, equity, access and deployment program.
FCC Commissioner Anna Gomez and carrier executives warned of challenges from the pending expiration of the affordable connectivity program and negative implications for the broadband access, equity and deployment program, speaking Wednesday at a Competitive Carriers Association conference streamed from Palm Springs, California. Gomez said she supports the proposed 5G Fund, circulated by Chairwoman Jessica Rosenworcel last month (see 2403260052), and is focused on concerns raised by CCA and others.
T-Mobile told customers they have options if, as expected, the affordable connectivity program ends (see 2404020075). “Existing customers using their ACP benefit with Assurance Wireless will keep their service through August 2024 without any changes to their price or plan,” T-Mobile said Monday: After, “they’ll need to qualify for Lifeline, a free federal assistance program -- if they don’t already have it -- or move to another low-cost T-Mobile or Metro by T-Mobile plan.” T-Mobile discussed its other low-cost services, including Metro by T-Mobile, Connect by T-Mobile and prepaid 5G data plans.
Possibly facing the end of the federal affordable connectivity program (ACP), the California Public Utilities Commission should quickly modify grant rules to ensure service stays affordable, said The Utility Reform Network in petitions Friday and Monday. “We don’t have the luxury of time here,” said TURN Telecom Policy Analyst Leo Fitzpatrick in an interview Monday. The state cable association slammed TURN’s proposals. But the California Emerging Technology Fund (CETF), a group that has led efforts to sign up low-income Californians for ACP, supports having “another opportunity to discuss the imperative for California to have a back-up plan to replace the” federal program, said CEO Sunne Wright McPeak in an email Monday.
Create a state version of the affordable connectivity program (ACP) with New York ConnectAll broadband funding helping low-income residents pay for wired broadband, the Cable & Telecommunications Association of New York (CTANY) suggested Thursday. The New York Public Service Commission received comments from the association, which includes Altice and Charter Communications, in docket 22-M-0313. "If ACP is eventually extended by Congress, the state program can complement the federal benefit, but if it is not extended, the subsidy can be an important safety net to continue connectivity for the over one million households who ... rely on ACP in the state,” CTANY said.
Affordable connectivity program providers will be reimbursed up to $14 for providing the benefit to nontribal households next month, said an FCC Wireline Bureau public notice Tuesday in docket 21-450 (see 2403040077). ISPs will also be reimbursed up to $35 for serving tribal households and up to $47 for connected devices.
Rep. Yvette Clarke, D-N.Y., is circulating a discharge petition (H.Res. 1119) in a bid to force a floor vote on her Affordable Connectivity Program Extension Act (HR-6929/S-3565), which would appropriate $7 billion to keep the ailing FCC broadband fund running through the end of FY 2024. Clarke's petition will likely help ACP backers in their push to advance the funding proposal out of the lower chamber and amplify pressure on Congress to act before the program's current money runs out in the coming weeks, lobbyists told us. Advocates acknowledge they still face headwinds in the Senate, where leaders continue eyeing alternative vehicles for the appropriation. Congress approved the Further Consolidated Appropriations Act FY 2024 minibus spending package last month without ACP money (see 2403280001).