The Affordable Connectivity Program (ACP) is a federal program that provides discounts on internet service and connected devices for eligible low-income households. The program, which was implemented during the COVID-19 pandemic, has helped many households save money on their internet bills and access essential online services for work, education, and healthcare. However, the program is set to expire at the end of 2024, raising concerns about the potential impact on both consumers and providers.
According to a report by the American Connection Project (ACP), low-income households could save around $1,300 per year from online shopping alone if they have affordable internet access. The impact on healthcare costs could be even greater, as telemedicine appointments can lower the cost of care by up to $141 per visit, and a recent survey found that 72% of ACP subscribers used the internet to schedule or attend health care appointments.
The end of the ACP could also affect the $42 billion Broadband Equity, Access, and Deployment (BEAD) program, which aims to improve broadband infrastructure in rural areas by incentivizing providers with subsidies based on the number of eligible subscribers. One analysis found that the existence of the ACP led to a 25% reduction in the per-household subsidy needed to incentivize providers in rural areas, as affordability support drives investments in deployment.
Since the ACP discount stopped being disbursed to customers, some internet providers have stepped in with their own low-income plans. To help consumers navigate these options, the National Digital Inclusion Alliance created a scoring system called Grading Internet for Good, based on factors like cost, transparency, and plan performance.
Some of the low-income plans with the best ratings include Xfinity Internet Essentials, which costs $10 per month and offers speeds up to 50 Mbps, and Verizon Forward with Fios, which costs $30 per month and offers speeds up to 300 Mbps. Other plans, like Astound Internet First, have no transparency information available, while some plans, like Cox ConnectAssist for individuals, have higher monthly prices or slower maximum speeds.
The prospects of an ACP extension remain uncertain, as efforts to secure funding have been unsuccessful so far. Some industry insiders are hopeful that the program will be extended, especially with Republican senator J.D. Vance’s support, but others are less optimistic due to the political climate and the upcoming elections. Several ACP extension bills are currently sitting in Congress, but it remains to be seen whether they will gain enough support to become law.
Source: https://www.cnet.com/home/internet/affordable-connectivity-program-discontinued/