California faces higher-than-expected construction costs as it works to complete the state’s middle-mile network, said Mark Monroe, deputy director-California Technology Department (CDT) Broadband Middle-Mile Initiative, at a partly virtual California Broadband Council meeting Thursday. And many more miles of fiber will be needed than originally planned, he said. Other state broadband officials said it’s important to keep funding the federal affordable connectivity program (ACP) as California makes gains enrolling households.
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.
Congress should continue to fund the affordable connectivity program, the FCC may not be the right entity to regulate AI and the agency's spectrum auction authority should be restored, said former FCC chairs and commissioners at the Multicultural Media, Telecom and Internet Council’s 2023 virtual Former Chairs’ Symposium Tuesday. Panelists -- including former acting Chairwoman Mignon Clyburn and former Chairman Richard Wiley -- also discussed diversity, the failed Standard/Tegna deal, and the confirmation of nominee Anna Gomez. Gomez is “a mainstream Democrat” who will “work well on a bipartisan basis,” said former Commissioner Jonathan Adelstein. “She’s not particularly ideological even though she’s been a strong fighter.”
AUSTIN – NARUC's Telecom Committee supported permanent annual funding for the affordable connectivity program (ACP) in a nearly unanimous vote at the association’s conference Tuesday. Congress will fear ending ACP if enough people sign up, Multicultural Media, Telecom and Internet Council CEO Robert Branson told state commissioners on a diversity panel Monday. Panelists said it’s important for digital equity efforts to keep the program that’s meant to help low-income communities afford broadband.
The use of AI and other technologies in managing how spectrum is used tops the agenda for the FCC’s Aug. 3 meeting, Chairwoman Jessica Rosenworcel said Thursday (see 2307130025). The FCC also released the draft items. Commissioners will vote on proposals on power levels for digital FM radio. Also on the agenda, a draft order establishing an up to $75 monthly broadband subsidy for eligible households in high-cost areas through the affordable connectivity program.
State commissioners proposed NARUC telecom resolutions seeking permanent annual funding for the affordable connectivity program (ACP) and recommending no government subsidies to communications companies using network equipment that might pose a national security risk. The state regulator association may consider the draft resolutions at its July 16-19 meeting in Austin. Telecom Committee ex-Chair Karen Charles Peterson of Massachusetts proposed the ACP resolution and another draft that would urge expanding Lifeline Awareness Week to include broadband access. ACP funds are expected to dry up by Q2 2024, said the first resolution. “Establishing a new federal assistance program was a complex process at the federal, state, territory, tribal and local level,” and potentially losing a permanent low-income broadband program "with government oversight is troubling because universal high speed internet access is essential for a well-functioning economy.” New Telecom Committee Chair Tim Schram (R) of Nebraska proposed the national security resolution. Despite "efforts to rip out and replace equipment and services from" the FCC's covered list "to safeguard our communications networks," a March 1 FCC public notice found about 79 providers still have covered equipment. That poses "an unacceptable risk to national security,” the draft said. The resolution would encourage the FCC to work with state commissions and broadband offices to identify risky equipment and hold back funding. “NARUC recommends that no federal, state, or local governmental body provide universal service support, broadband deployment support, or any other form of grant funding to any communications company which utilizes equipment identified on the FCC’s Covered List anywhere in its network.”
State broadband officials are eager to move forward on NTIA's broadband, equity, access and deployment program following the agency's announcement Monday of each state's funding totals (see 2306260007). Industry and advocates also emphasized the need for more participation in the FCC's affordable connectivity program so households can take advantage of new or upgraded infrastructure in their communities.
NTIA announced funding allocations for its broadband, equity, access, and deployment program Monday. All entities will receive a formal notice of their allocations Friday, the agency said. The $42.5 billion program will be used for broadband deployment efforts, adoption and workforce development. Initial proposals may be submitted from July 1 through Dec. 1. States and territories will have access to 20% of their allocated funds once their proposal is approved by NTIA. Texas is receiving by far the largest BEAD award, at more than $3.3 billion.
House Communications Subcommittee members made the future of the FCC’s affordable connectivity program a major focus of its Wednesday commission oversight hearing, as expected (see 2306200075), but the panel didn’t result in a clear sense of whether Commerce Committee GOP leaders will back additional funding for the initiative. Subpanel Chairman Bob Latta, R-Ohio, and others haven’t committed themselves as either for or against further ACP funding (see 2305100073). Democrats strongly defended the program and urged its extension.
The FCC’s administration of its affordable connectivity program and other broadband initiatives won’t be the sole focus of a Wednesday House Communications Subcommittee hearing with commission Chair Jessica Rosenworcel and other commissioners, but it’s likely to be the item with the most bearing on future policymaking, observers said in interviews. The panel is happening a day before two of the commissioners -- Republican Brendan Carr and Democrat Geoffrey Starks -- appear before the Senate Commerce Committee for a joint confirmation hearing with new FCC nominee Anna Gomez (see 2306150068). The House Communications hearing will begin at 10:30 a.m. in 2123 Rayburn.
NTIA Administrator Alan Davidson warned the "broad goal of closing the digital divide is at risk" because the FCC's affordable connectivity program is "at risk of running out of money," during a New America event Wednesday (see 2306130057). Davidson emphasized the need for affordable broadband options as the agency administers its broadband, equity, access and deployment program. The internet is "the essential communications tool in our modern world" and millions of people across the country "still lack access to an affordable high speed internet," he said: "If we want to reach our goal of helping Americans thrive online, a connection alone is not enough."