Affordable Connectivity Program (ACP)

Cable One saw slight broadband subscriber losses in Q3 owing to the end of the affordable connectivity program, it said Thursday as it announced results. The company said it ended Q3 with 960,000 broadband residential primary service units (PSU) -- flat from Q3 2023 -- and lost 5,300 subscribers in Q3 from ACP. If not for the ACP losses, it would have had 1,900 net additions for the quarter, it noted. Cable One said it ended Q3 with 112,000 video residential PSUs, down from 141,000 a year earlier; and 70,000 residential voice PSUs, compared to 82,000 a year earlier. Multiple cable operators saw ACP-related hits to their broadband numbers in Q3 (see 2411050006).

Altice USA and WideOpenWest (WOW) took Q3 hits to their broadband subscriber numbers from the June end of the affordable connectivity program, though both would have lost subscribers regardless of ACP, the companies said. Announcing results after the market's close Monday, WOW said it expected Q3 to mark the end of its ACP-related losses. Last week, Comcast and Charter said that if not for ACP losses, their Q3 broadband subscriber numbers would have been in the black (see 2410310013 and 2411010006).

If not for the end of the affordable connectivity program, Charter Communications would have added broadband subscribers in Q3, CEO Chris Winfrey said Friday as it announced Q3 results. Comcast said the same about its Q3 broadband losses Thursday (see 2410310013). Charter said it lost 113,000 residential internet customers in the quarter. CFO Jessica Fischer said it retained the vast majority of subscribers who were previously receiving an ACP benefit. She said Q4 will likely see 100,000 internet subscriber disconnects for non-pay, as well as some voluntary disconnects, with ACP's end factoring in both. After Q4, the one-time impact from the end of the ACP program should be completed. Winfrey said Charter saw "significant" initial impact from hurricanes Milton and Helene due to power outages and downed poles and trees. He said all but roughly 10,000 customers have had their service restored. He said Charter is restoring service in the Asheville, North Carolina, area and pockets of Tampa Bay. Fischer said Charter anticipates 400,000 new subsidized rural passings in 2024 -- 35% more than in 2023, but lower than its original 2024 plan of 450,000 as it moved construction labor to storm-damaged areas. Winfrey said Charter now offers symmetrical, multi-gigabit speeds in eight markets, including Cincinnati, Dallas, Louisville and Rochester, New York, and is broadly marketing it. Network upgrades to bring symmetrical multi-gig speeds to other markets will be done by year's end. He said Charter's network upgrade should be done in 2027. Charter ended Q3 with 28.2 million residential internet subscribers, down from 28.6 million year over year; 12.4 million residential video subscribers, down from 13.8 million; 5.9 million residential voice subscribers, down from 7 million; and 9.1 million residential mobile lines, up from 7 million. It had revenue of $13.8 billion for the most-recent quarter, up from $13.6 billion the same quarter a year prior. MoffettNathanson's Craig Moffett wrote that going forward, Charter's broadband losses will be smaller "now that the worst of the ACP impact has been felt." He said fixed wireless access and fiber to the home competition also likely has peaked, "even if only slightly so."

With more than $1.8 billion in federal cash from the broadband equity, access and deployment (BEAD) program on the line, USTelecom asked the California Public Utilities Commission to reconsider its rules for implementing the state’s BEAD initial plan volume 2. In a rehearing application (docket R.23-02-016) posted Friday at the CPUC, the national ISP association said it “cannot stand by and risk the Commission’s adoption of a collective set of requirements that will severely limit participation in and the overall effectiveness of California’s BEAD Program.” The commission should deny USTelecom's application, a consumer advocate urged.

Comcast is considering spinning off its cable networks -- though not streamer Peacock or its broadcast assets -- into a separate, publicly traded company, President Mike Cavanagh said Thursday as Comcast announced Q3 financial results. In addition, he noted Comcast is open to streaming partnerships with Paramount Global. The company said that, absent the impact of the end of the affordable connectivity program (ACP), it would have been in the black with broadband net adds.

AT&T will pay a nearly $2.3 million fine under a settlement with the FCC for violations in the emergency broadband benefit program and affordable connectivity program. A Friday order said an Enforcement Bureau investigation found that AT&T sought and received funding for improperly enrolled non-subscriber benefit qualifying persons between "at least" May 2021 and December 2023. AT&T violated rules that require in-store sales personnel to obtain a representative accountability database identification number. The bureau also found that the ISP collected funds for subscribers who had not used their service for at least 45 days. Providers can receive reimbursement for "offering the ACP benefit when the subscriber has used the service at least once every 30 days or has cured their non-usage during a subsequent 15-day cure period."

The California Public Utilities Commission is mulling ways it can support broadband adoption in the wake of the federal affordable connectivity (ACP) program ending, Communications Division Director Rob Osborn said during the California Broadband Council’s meeting Tuesday. The state is making significant progress advancing its broadband-for-all goals, reported Scott Adams, deputy director of the California Department of Technology (CDT) broadband and digital literacy office.

Senate Majority Leader Chuck Schumer, D-N.Y., “remains supportive” of the Spectrum and National Security Act (S-4207) “and believes Republicans and Democrats should come together on a robust spectrum package to ensure the U.S. has a competitive edge for 5G, while delivering affordable internet to American families and securing bipartisan national security and innovation priorities,” a spokesperson emailed. S-4207 would restore the FCC’s spectrum auction authority through Sept. 30, 2029, and provide a vehicle for allocating funding for the commission’s lapsed affordable connectivity program and other telecom priorities. Lead sponsor Senate Commerce Committee Chair Maria Cantwell, D-Wash., is eyeing potentially attaching the measure to an end-of-year package amid attempts to resurrect it after it repeatedly stalled earlier this year (see 2409170066). Schumer’s continued support for S-4207 is important because there was uncertainty about whether he would back a push to attach it to year-end legislation or pivot to prioritize a version of the Proper Leadership to Align Networks for Broadband Act (S-2238) that Senate Commerce amended in July to include funding for ACP and rip and replace (see 2408220041), lobbyists told us.

FCC Commissioners Nathan Simington and Geoffrey Starks warned the Mobile World Congress in Las Vegas that the FCC’s loss of general spectrum auction authority last year is hampering U.S. competitive efforts against major rivals in the 6G race. CTIA President Meredith Baker sounded a similar theme at the beginning of the conference, which CTIA sponsors with GSMA (see 2410080044).

Congressional Democratic leaders remain intent on attaching funding to restore the FCC’s lapsed affordable connectivity program to a year-end legislative package (see 2409170066). Some lawmakers acknowledge the push faces long odds in what’s likely to be a fraught lame-duck session. Some ACP boosters believe Capitol Hill’s lame-duck dynamics could change depending on the outcome of the Nov. 5 election. GOP lawmakers aren’t enthusiastic about attaching ACP money to a legislative vehicle this year, in part citing their longstanding demand for a major overhaul of the program in conjunction with additional funding.