Providers are preparing for the end of the ACP
Some, like Verizon, are offering their own alternatives like discounted or self-funded programs
Providers have the option of discontinuing the benefit in May or contributing to customers’ ACP service to make up for the funding gap
The end of the Affordable Connectivity Program (ACP) is getting close, and now several providers are sharing their plans to deal with the program’s demise.
For instance, Verizon yesterday said that it would offer its Verizon Forward Home Internet service for as low as $20 per month. New Verizon Forward customers could receive the service for free for six months. And Fastwyre Broadband said it will continue to provide the up to $30 benefit, or up to $75 on tribal lands, for its existing ACP customers from May through August 2024 through a self-funded program, “regardless of funding from Congress."
The ACP program launched in 2022 to provide eligible households with up to $30 per month in credits for internet service, and up to $75 per month if they live on tribal lands. According to the Universal Service Administrative Company, more than 23 million Americans are enrolled in the benefit program.
Federal funding for ACP is expected to run out, absent new money from Congress. As of April 16, $1.8 billion remained in the program’s pocket. That will get most providers through April with the full ACP benefit of $30 per customer. They have the option of discontinuing the benefit in May, or they can contribute to customers’ ACP service to pay for what the FCC can’t anymore.
Non-tribal providers should expect to receive between $7 to $16 per ACP customer for the month of May, according to an FCC notice issued last week. Tribal providers can expect to receive between $18 to $39 per customer for May, a drop from $75 per month.
In preparation, service providers are starting to communicate with their customers about how this is going to go down. Some announced that they will start their own self-funded programs to provide free or discounted service. Others will continue existing programs that offer low price tiers.
Here are the strategies we’ve heard about so far:
AT&T
AT&T said it will continue to offer its “Access from AT&T” plan, which provides 100-megabit speeds for $30 per month.
Charter
As a big participant in the ACP with a lot to lose when it ends, Charter has not made any announcements about a specific ACP replacement. However, if a Spectrum customer qualified for the ACP, they might qualify for Spectrum’s Internet Assist plan, which offers 50 Mbps download speeds for $24.99/month.
Comcast
Comcast will continue low-cost internet service through Internet Essentials for as low as $9.95/month. Customers can also transfer their ACP benefit to an eligible plan, according to the company’s website.
Cox
Cox will continue to offer its Connect2Compete Internet Plan, which offers a $9.95 per month service for families with a child in grades K-12 in the home who participate in the National School Lunch Program or other select federal programs. It also has its ConnectAssist Internet Plan – a $30 per month service for low-income households that participate in select government programs.
Fastwyre Broadband
Fastwyre Broadband will continue to provide the up to $30 benefit, or up to $75 on tribal lands, for its existing ACP customers from May through August 2024 through a self-funded program, “regardless of funding from Congress."
Frontier Communications
When ACP enrollments ended, Frontier introduced a "special offer"—200 Mbps fiber internet for as low as $29.99 per month—available in certain parts of its footprint.
Life Wireless
Life Wireless, the Lifeline Assistance Program's wireless service provider, said it will continue opportunities for low-income families and individuals to get “free and discounted wireless service.”
TDS
TDS said it will continue offering its low-cost TDS Connect service option, which provides up to 200 Mbps at a discounted rate of $30/month, including Wi-Fi, for qualifying customers.
Verizon
Verizon recently launched a limited-time offer for new “Verizon Forward” subscribers that brings the cost of home internet down to $0 per month for six months. Typically, the service offers Verizon Home Internet for as low as $20 per month.
We'll be updating this ongoing story as additional plans from companies move to fill the ACP’s gap. The FCC has a list of all the providers that have participated in the ACP here.
There is bipartisan support for an extension to the ACP, including proposed legislation that would add $7 billion in funding to the program. But with the ides of April behind us, more funding for the ACP is starting to seem seriously unlikely.
According to a recent survey, 84% of Americans consider internet connectivity a basic necessity – like electricity and running water. When asked who should be responsible for ensuring communities have reliable access, the survey showed most agree it’s some level of government.
Respondents pointed to the federal government – including Congress (11%), state government (11%) and local government (10%) – followed by an additional 11% saying all levels of government. Just 20% said it’s up to businesses.
With federal legislators more focused on other spending initiatives, industry experts have put their heads together to think up alternative ways to continue the ACP, or at least set up another similar program elsewhere. However, those efforts would undoubtedly take some time, and the ACP doesn’t have much left.
Check out all of our coverage of the ACP here.