News
A new report says 6 million households will lose internet access because of the Affordable Connectivity Program’s demise.
By: Brad Randall, Broadband Communities
A quarter of U.S. households that relied on the Affordable Connectivity Program (ACP) to help pay for internet will drop their connections.
That finding, along with others, was included in a recent Maravedis report, a market intelligence firm that has a focus on wireless infrastructure, multifamily connectivity, and smart technologies.
The report, titled “Managed Connectivity for Affordable Housing in the United States 2024-2029,” also concluded that a quarter of former ACP-enrolled households will maintain internet service. According to the findings of the report, half of households formerly enrolled in the ACP will fluctuate to on-and-off service based on promotional programs.
Previously, the ACP provided eligible households $30 per month towards internet service. A benefit of $75 per month was also available to those who qualified on Tribal lands.
Nearly 23 million households nationwide relied on the ACP program to help pay for internet. Households were considered eligible if their income was at or below 200 percent of poverty guidelines set by the government.
Despite glimmers of hope to renew funding for the program, the Republican led U.S. House of Representatives has still failed to approve any measure to renew funding for the ACP.
According to Adlane Fellah, a chief analyst at Maravedis, 40 percent of households with annual incomes below $25,000 lacked a wireline subscription as of 2022.
“Given that the large majority of affordable housing happens in multifamily units, providing affordable connectivity in multifamily housing can be a sustainable business model under the right public-private partnership,” Fellah said.
Fellah said managed service providers should make subsidy programs should be applied to bulk internet deals “to encourage long-term, favorable deals which benefit an entire property.”
In comments included with Maravedis’ release this week, Kevin Donnelly, a VP of government affairs, technology, and strategic initiatives with the NMHC, said the new research from Maravedis “amplifies the need to get serious about ending the digital divide once and for all.”
“Too often, residents of affordable and low-income housing are left behind. It’s also where we’ve seen the proven success of bulk internet and managed Wi-Fi solutions to move the needle—critical tools that policymakers should embrace and leverage to magnify the impact of historic broadband infrastructure funds being rolled out across the country,” Donnelly said.
In March, a proposal from Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel sought to allow tenants to opt-out of bulk billing arrangements.
Organizations, including the National Multifamily Housing Council (NMHC), have lined up to oppose the proposal.
“No matter what the FCC decides about managed bulk internet, it only makes sense for property owners to provide a fast, secure, and seamless connectivity experience for residents of affordable housing,” the June 25 release from Maravedis stated.
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