Affordable Connectivity Program (ACP)

Providers, local governments and advocates welcomed FCC-proposed rules for the $14.2 billion affordable connectivity program, in comments posted Thursday in docket 21-450. Some raised concerns about potential implementation challenges as the agency shifts from the $3.1 billion emergency broadband benefit program and urged the commission to allow flexibility for EBB providers and enrolled households during the transition.

The FCC Wireline Bureau waived more emergency broadband benefit program rules as the commission transitions to the affordable connectivity program, in an order Wednesday in docket 21-450 (see 2111260015). The bureau waived the requirement that ISP offerings and standard rates be offered "in the same manner and terms" as offerings available Dec. 1, 2020, until final ACP rules are enacted, and the requirement that providers submit to Universal Service Administrative Co. that they were a broadband provider then, in each state where it planned to participate. The bureau released additional guidelines for the EBB-to-ACP move, including that the national Lifeline accountability database will close at 6 p.m. EST Dec. 30 "for administrative purposes" ahead of ACP's Dec. 31 launch.

Give providers participating in the affordable connectivity program "substantial flexibility" until at least April 1 for any requirements the FCC adopts in its final order on the program, Verizon told staff to Commissioner Geoffrey Starks, said a letter posted Tuesday in docket 21-450 (see 2111230058). It recommended the commission not adopt an opt-in requirement for households enrolled in the emergency broadband benefit program. The Infrastructure Investment and Jobs Act prohibits participating providers from "[requiring] the eligible household to submit to a credit check in order to apply the affordable connectivity benefit to an internet service offering,” to which Verizon noted "does not prohibit providers from simply performing a credit check or from using the results of a credit check for other purposes."

Require that affordable connectivity program providers apply the benefit only to "all plans that are presently offered to potential customers, not grandfathered plans," USTelecom CEO Jonathan Spalter told FCC Commissioner Geoffrey Starks and his staff, said a filing posted Monday in docket 21-450 (see 2111180067). Spalter said it's not "necessary" for providers to submit details of every plan that will be available and to allow "as much time as necessary" to transition from the emergency broadband benefit program.

Allow tribal households that qualified as Lifeline subscribers for the FCC emergency broadband benefit program to participate in the affordable connectivity program without needing to opt in, Smith Bagley urged Wireline Bureau staff, said an ex parte letter posted Tuesday in docket 21-450. Those households "will see no change in their benefit, nor their service offering, when [EBB] transitions to ACP" and "would find it much more difficult to execute an opt-in requirement than most others in the nation," Smith Bagley said. It also asked that "no fundamental changes" be made to the National Lifeline Accountability Database because providers can adjust discounts within NLAD and remove households that no longer qualify.

The FCC Wireline Bureau waived certain emergency broadband benefit program rules requiring an enrollment freeze and consumer notifications as the commission transitions to the affordable connectivity program, said an order posted Friday in docket 20-445 (see 2111230058). The rule, originally intended to "avoid claims volatility and to allow for more certain financial projections in the final months," required a freeze in EBB enrollments once the program's end date was announced. Waiving the rule "maximizes the time period" for enrollment during EBB's final weeks and "avoids unnecessarily limiting participation," the order said. The bureau also waived the 15- and 30-day consumer notice requirement that EBB is ending, given that enrolled households will continue receiving up to $50 monthly broadband subsidies during the 60-day transition to ACP, it said.

The FCC is likely to face minimal implementation obstacles as it transitions from the $3.1 billion emergency broadband benefit program to the $14.2 billion affordable connectivity program, advocacy and industry groups told us (see 2111180067). A central concern is ensuring EBB-enrolled households can switch to the new program with minimal hiccups once eligibility and subsidy amount changes take effect. That could be mitigated with education and outreach efforts, stakeholders said.

Broadband and housing advocates want more FCC scrutiny over multi-tenant environments and the deals MTE building owners make with providers, said replies posted Monday in docket 17-142 (see 2110210053). Some said exclusivity agreements could hamper enrollment efforts in the upcoming $14.2 billion Affordable Connectivity Program (ACP). MTE trade groups rejected additional regulation.

The FCC Wireline Bureau wants comments by Dec. 8, replies by Dec. 28, on implementation of the Affordable Connectivity Program, said a public notice Thursday in docket 21-450. The new program provides a $30 monthly broadband subsidy for nontribal households and retains the emergency broadband benefit program's $75 monthly subsidy for tribal households. The bureau proposes to retain EBB rules for a connected device. The effective date of the new program will be Dec. 31 as EBB won't be fully expended beforehand and a 60-day transition period for EBB enrollees begins then. The new program would retain similar rules to EBB, including those for participating providers. The Infrastructure Investment and Jobs Act modified household eligibility to remove those that were eligible for a provider's COVID-19 program or experienced a substantial loss of income in the past year, while adding households that receive Women, Infants and Children benefits. The bureau seeks comment on whether aspects of the EBB application process should be retained or modified, and whether providers should file an election notice to participate if they're already in the EBB program. The PN seeks comment on a statutory requirement that providers "allow an eligible household to apply the affordable connectivity benefit to any internet service offering of the participating provider, at the same rates and terms available to households that are not eligible households." The bureau proposes a 30-day non-usage period requirement with 15 days for households to cure the non-usage. The PN seeks comment on whether modifications to this requirement are warranted. The infrastructure law requires that participating providers let enrollees apply the benefit to any internet service. The bureau is seeking comment on how to implement this. Staff proposes requiring providers seek affirmative consent before enrolling a household in ACP and seeks comment on whether that should be done through written consent (see 2111170066). The bureau also is seeking comments on outreach (see 2111090063). The PN seeks comment on partial reimbursement and provider disputes.

Automatically transition emergency broadband benefit program enrollees into the affordable connectivity program, said the National Lifeline Association in a letter to FCC posted Tuesday in docket 20-445. Lifeline subscribers should also be automatically enrolled in the new program and all enrollees should be given an opt-out notice, NaLa said. The group wants a "benefit transfer integrity check" where ACP applicants agree to stay with their chosen provider for 30 days, except when moving out of a service area, before transferring to another provider. NaLa asked that the definition of a "connected device" also be amended to define a tablet by size and "other capabilities related to online learning or telework rather than by the ability to make cellular calls."