Tribal-area wireless provider Smith Bagley told the FCC the Navajo Nation this week adopted a legislative resolution supporting the carrier’s April request for a waiver of Lifeline rules. The provider asked the FCC to temporarily provide expanded monthly tribal Lifeline benefits of $25 to $65.75 to make up for the loss of funding following the expiration of the affordable connectivity program (see 2404080030). During the COVID-19 pandemic, Smith Bagley “added 100 Gigabytes of data each month for Tribal ACP customers to use while their Tribal lands were closed down and they were forced to stay home,” said a filing posted Wednesday in docket 11-42. Now that ACP has lapsed, Smith Bagley “can no longer provide the additional 100 Gigabytes of data to Tribal homes,” the filing said: “With minor adjustments, it has returned to its pre-COVID rate plans, which means that high data use customers must purchase additional bundles of data when needed.”
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.
FCC Commissioner Brendan Carr again took aim at how the Biden administration and NTIA have implemented the $42.5 billion broadband equity, access and deployment (BEAD) program, a concern Republicans on Capitol Hill have amplified (see 2409190063). BEAD is “a program worth fighting for,” but it must change, Carr said Friday during an American Enterprise Institute webinar.
Cost remains an obstacle for 1.7 million New York state households to get broadband, said a New York Department of Public Service staff report Tuesday. And the end of the federal affordable connectivity program and litigation over the FCC’s reclassification of broadband and New York’s Affordable Broadband Act (see 2409160031) have complicated efforts to connect them, staff said. “To alleviate that uncertainty,” the department included in the report a list of low-cost plans available from ISPs.
Senate Commerce Committee Chair Maria Cantwell, D-Wash., is eyeing attaching her Spectrum and National Security Act (S-4207) to an end-of-year package instead of pursuing another markup attempt before Congress recesses at the end of September for pre-election campaigning. She previously eyed a potential September markup of S-4207 (see 2408150039) in hopes of resurrecting the measure after it repeatedly stalled earlier this year. 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.
House Communications Subcommittee members traded partisan barbs about NTIA’s implementation of the $42.5 billion broadband equity, access and deployment (BEAD) program, as expected (see 2409040040). Republicans delivered most of the criticism, in part blasting NTIA for what they view as an unnecessarily long timeline for rolling out the money. House Commerce Committee panel GOP leaders launched a probe in July of NTIA’s BEAD-related communications with state broadband offices (see 2407090057). Democrats defended NTIA’s management of the program and blasted GOP lawmakers for obstructing recent broadband funding efforts.
Verizon isn’t stressing about the November election, Sowmyanarayan Sampath, executive vice president and CEO of Verizon Consumer Group, said Wednesday at a Bank of America financial conference. Verizon has “a very strong track record of working with both the Democrats and the Republicans,” he said: “We know how to work with them to get better outcomes and connectivity for everyone.” Priorities for Verizon include a program like the expired affordable connectivity program and support for rural broadband, he said. Verizon is also focused on Communications Act Title II “reforms” and tax policy. The company had 1.1 million ACP customers, and 65% are now paying customers, Sampath said. He projected further growth in Verizon’s fixed wireless access offering, and expects the program to hit 4 million this quarter. “Very soon, we have to come back and explain how we grow the next tranche,” he said: “We have a lot more capacity. As they say, they build the church for Easter.” Sampath said the wireless industry will continue to add customers, partly as a result of “strong immigration,” which adds several million potential subscribers each year. Verizon is pleased with its prepaid position. “With our Tracfone acquisition, plus some of our brands that we put into the mix that were legacy Verizon, we have what is, I think, the best prepaid business in the market today.” He projected the carrier will have net positive prepaid adds this quarter, excluding any SafeLink ACP losses, after losing customers in recent quarters. Sampath declined to comment, in general, on media reports that Verizon is considering acquiring Frontier. “We like to own our own fiber assets for the most part,” he noted. New Street said Wednesday it views the reports as “credible.”
CHARLESTON, S.C. -- While some states hope to have enough broadband equity, access and deployment money to also tackle adoption and affordability issues, not just infrastructure, BEAD project costs may dash those hopes, according to Nokia's Lori Adams. Separately Tuesday at NATOA’s annual local government conference, Joanne Hovis, CTC Technology & Energy president, predicted growing concerns when it becomes clear Western states lack enough BEAD money to reach 100% of locations with adequate infrastructure. Speakers also discussed issues local governments face with small cell deployment permitting.
CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).
Telecom lobbyists are closely watching whether Senate backers of the Spectrum and National Security Act (S-4207) can secure a hoped-for September markup of the measure given recent efforts to move the Proper Leadership to Align Networks for Broadband Act (S-2238) as an alternative vehicle for funding the FCC’s lapsed affordable connectivity program (see 2408150039). The Senate Commerce Committee in July adopted amendments to S-2238 that attached funding for ACP and the FCC’s Secure and Trusted Communications Networks Reimbursement Program (see 2407310048). Several observers pointed to a proxy fight about spectrum issues during Senate Commerce’s consideration of S-2238 as evidence negotiations on S-4207 are likely to remain fraught.