What is the Affordable Connectivity Program

In the modern era, seamless internet connectivity is more of a necessity than a luxury. The Affordable Connectivity Program (ACP), a noteworthy initiative, seeks to bridge the glaring digital divide afflicting various communities across the United States. Conceived to supersede the Emergency Broadband Benefit, this program is particularly aimed at facilitating the provision of broadband services at reduced costs, thereby fostering digital inclusivity and equity. In doing so, it targets communities grappling with limited or no access to broadband services, a predicament that notably hinders their socio-economic growth.

As per recent data, approximately 19 million Americans still lack access to broadband, according to a 2021 report from the Federal Communications Commission (FCC). This disturbing gap not only places these individuals at a disadvantage but also stifles the potential advancements in education, healthcare, and job opportunities in their communities. Therefore, the Affordable Connectivity Program emerges as a timely intervention, offering a beacon of hope and a vital step towards nurturing a digitally connected and prosperous society.

The Need for the ACP

Why Was It Created?

The Affordable Connectivity Program (ACP) was instituted not merely to narrow the technology gap, but also as a tool to stimulate economic growth. By facilitating internet access, it aims to enhance productivity and innovation in numerous sectors, promoting nationwide prosperity.

The Existence of the Digital Divide

• Urban-Rural Disparity: The urban-rural disparity in internet connectivity is strikingly evident in the contrast of available internet speeds across different states. For instance, while urban areas in states like Maryland boast internet speeds up to 506.7 Mbps, rural areas in states such as Montana lag behind, struggling with speeds as slow as 110.5 Mbps. This stark divide symbolizes the unequal digital opportunities and infrastructural developments between urban and rural landscapes.
• Educational Limitations: Educational limitations have become glaringly evident with the hindered access to online learning resources, exacerbated by the digital gap. A stark example is in rural communities like Appalachia, where students often lack reliable internet access. This digital disparity not only impedes remote schooling but also restricts access to crucial educational support systems, perpetuating unequal opportunities and exacerbating educational inequalities in these regions.
• Employment Barriers: Employment barriers have emerged prominently due to the limitations on remote work, job hunting, and career advancement. The COVID-19 pandemic underscored the need for remote work options, but disparities persist. Individuals without reliable internet access or digital skills face obstacles in accessing remote job opportunities and career development resources. This societal division exacerbates existing inequalities, hindering socio-economic mobility and perpetuating disparities in the job market.
• Healthcare Gaps: Healthcare gaps persist as many individuals struggle to effectively utilize telehealth services and access critical health information. Studies indicate that a significant portion of the population, particularly in rural areas, faces challenges in embracing telehealth due to limited internet access and digital literacy. This impediment not only hinders timely medical consultations but also obstructs access to vital health resources, underscoring the urgent need for equitable healthcare solutions that transcend geographical disparities.

Governmental Acknowledgment of Internet as a Public Utility

• Equal Opportunity: Recognizing the paramount importance of equal opportunity, society acknowledges the need to level the playing field in both education and job markets. By ensuring equitable access to quality education and eliminating systemic barriers in employment, we empower individuals from all backgrounds to fulfill their potential and contribute to a more just and inclusive society, where talent and effort, not circumstances of birth, determine success.
• Economic Development: Economic development plays a crucial role in fostering business growth, particularly in underprivileged areas. By providing opportunities, resources, and infrastructure support, it encourages entrepreneurship, job creation, and increased prosperity. This process not only strengthens local economies but also contributes to the overall well-being of communities, empowering them to break free from cycles of poverty and inequality.

Statistics Supporting its Implementation

The implementation of initiatives to improve internet accessibility is crucial, given that approximately 27.6 million American households, nearly 22.5% of the total, lack access to high-speed internet. This digital divide disproportionately affects low-income and rural communities, depriving them of crucial educational resources, employment opportunities, and essential services.

During the COVID-19 pandemic, students without reliable internet access faced significant educational setbacks, hindering their ability to engage in remote learning effectively. Simultaneously, job seekers in underserved areas encountered difficulties accessing online job listings and participating in virtual interviews, exacerbating economic disparities. Programs like the Affordable Connectivity Program are essential in addressing these statistics, fostering equitable opportunities, and bridging the digital divide to ensure a more inclusive and prosperous future for all Americans.

Statistics on Internet Access Disparities

• Minority Communities: Minority communities in the United States continue to face elevated rates of internet access disparities. According to the latest statistics, approximately 30% of households in minority communities lack reliable internet access. This digital divide not only affects their educational and employment opportunities but also hinders their overall quality of life, limiting access to essential online services and resources.
• Rural Areas: Rural areas across the country experience significantly lower percentages of high-speed internet subscriptions compared to their urban counterparts. Recent data reveals that, on average, rural areas have a subscription rate of only 75%, while urban locales boast an average of 84%. This stark contrast underscores the urgent need for infrastructure development to bridge the rural-urban internet access gap.
• Low-Income Households: There is a clear correlation between income levels and the lack of reliable internet access. Among households with an annual income below $30,000, nearly 40% struggle with inadequate internet access. This disparity not only exacerbates economic inequalities but also reinforces the digital divide, as lower-income families often cannot afford the necessary technology and subscriptions required for full internet participation.

Impact on School Children

• Remote Learning: The impact of internet access disparities on school children is pronounced, with statistics revealing that a substantial number of students face challenges participating effectively in remote education. As of recent data, approximately between 9 million and 12 million of K-12 students in the United States lack access to reliable high-speed internet, hindering their ability to engage in online learning platforms.
• Educational Outcomes: Digital inequity's long-term ramifications on educational outcomes are concerning. Studies indicate that students without consistent access to the internet experience lower test scores and an increased risk of dropping out of school. These disparities amplify existing educational inequalities, emphasizing the urgent need to address internet access disparities to ensure equal educational opportunities for all students.

Economic Implications of Digital Access Gap

• Economic Losses: The digital access gap has substantial economic consequences, with quantifiable losses in GDP and income due to limited digital connectivity. Recent studies estimate that the digital divide could result in annual economic losses of up to $2 trillion, stemming from reduced productivity, limited access to online markets, and missed economic opportunities.
• Business Impact: Small businesses bear the brunt of the digital divide, experiencing lower growth rates and missed opportunities due to inadequate digital tools. According to surveys, over 50% of small businesses without a strong online presence report slower growth, and many struggle to compete in the increasingly digital marketplace. Bridging this gap is essential for fostering economic growth and ensuring equitable participation in the digital economy.

What is the ACP

Guidelines

The ACP offers clear guidelines for program participation, including:

• Types of Services Covered: Under the ACP, eligible households can access financial assistance for two primary types of services: internet service and equipment rental. These provisions aim to address both the cost of broadband connectivity and the necessary devices for accessing the internet.
• Internet Service: The program covers a portion of the monthly cost associated with broadband internet service, making it more affordable for eligible participants. The specific amount of financial aid provided varies based on household income and eligibility criteria.
• Equipment Rental: The ACP also offers support for renting essential equipment such as modems and routers. This ensures that households have the necessary hardware to effectively utilize the subsidized internet service.
• Amount of Financial Aid Provided: The amount of financial aid provided through the ACP depends on various factors, including the household's income and whether it qualifies for other federal assistance programs like SNAP or Medicaid. These guidelines help determine the level of support each eligible household receives.
• Application Process and Timeline: The program provides a clear application process that eligible households must follow to access its benefits. It also outlines the timeline for applying, verifying eligibility, and receiving assistance, ensuring a structured and efficient distribution of resources. These guidelines collectively shape the ACP's implementation and impact on bridging the digital divide for low-income communities in the United States.

Eligibility Criteria

Families can become eligible for benefits under the Affordable Connectivity Program (ACP) through various avenues, including:

• Meeting income criteria within your household.
• Participating in specific government assistance programs like SNAP, Medicaid, WIC, or similar initiatives.
• Receiving a Lifeline benefit, whether you or someone in your household already qualifies.

Based on Your Income

Your household qualifies for the Affordable Connectivity Program if its income falls at or below 200% of the Federal Poverty Guidelines.

Participation in specific government assistance programs

You may qualify for ACP benefits if someone in your household is enrolled in one or more of the following State or Federal Assistance Programs:

• CalFresh or SNAP (formerly Food Stamps)
• Medi-Cal
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Veterans Pension and Survivors Benefit
• Free and Reduced-Price School Lunch Program or School Breakfast Program, including USDA Community Eligibility Provision schools

Tribal Assistance Programs

Residing on qualifying Tribal lands makes you eligible for the ACP if your household income falls at or below 200% of the Federal Poverty Guidelines. Additionally, you qualify if you or a member of your household participates in:

• Any of the federal assistance programs mentioned earlier
• Bureau of Indian Affairs General Assistance
• Head Start (for households meeting the income qualifying standard)
• Tribal Temporary Assistance for Needy Families (Tribal TANF)
• Food Distribution Program on Indian Reservations

Eligibility through a child or dependent

Any member of your household has the potential to render the entire household eligible by participating in one of the aforementioned programs. For instance, if your child or dependent takes part in the Free and Reduced-Price School Lunch Program or is enrolled in a USDA Community Eligibility Provision school, your household becomes eligible for ACP benefits.

Already receiving a Lifeline benefit

If you are presently benefiting from Lifeline, you automatically meet the eligibility requirements for the ACP, and you can simultaneously receive both benefits. You have the option to apply your ACP benefit and your Lifeline benefit to the same services or allocate them to different services as per your preference.

How Does the ACP Safeguard Consumer Interests?

The Affordable Connectivity Program (ACP) prioritizes consumer protection through FCC regulations that offer the following safeguards:

• Personalizing Choices: ACP beneficiaries are empowered to select a service plan that aligns precisely with their individual requirements, even retaining their existing plan if it suits their needs.
• Credit Status Neutrality: Consumers' access to supported broadband services is not hindered by their credit history, ensuring equal opportunities for all.
• Inclusion Despite Financial History: Service providers are prohibited from excluding consumers with prior debts or overdue balances from participating in the program, promoting inclusivity.
• Preventing Subpar Plan Forcing: Consumers are not compelled to accept costlier or lower-quality plans in order to qualify for ACP benefits, ensuring they receive suitable options.
• No Early Termination Penalties: Beneficiaries can exit a service plan without facing early termination fees, providing flexibility and cost-saving options.
• Minimizing Financial Risks: The ACP minimizes the risk of unexpected high bills or financial hardships, enhancing the overall consumer experience.
• Freedom to Change Providers: Recipients of ACP benefits have the freedom to switch service providers or modify their broadband offerings to better meet their evolving needs.
• Specialized FCC Redress Mechanism: A dedicated FCC procedure is established to address and resolve ACP-related complaints promptly, ensuring that consumer concerns are effectively heard and addressed.

Analysis and Impact of the ACP

Overall Changes

The implementation of the Affordable Connectivity Program (ACP) has yielded significant transformations, including:

• Increase in Broadband Subscription Rates: The Affordable Connectivity Program (ACP) has led to a notable rise in broadband subscription rates across eligible households. Recent statistics show a significant uptick in the number of families gaining access to high-speed internet services since the program's inception.
• Impact on Households: The ACP has made a substantial impact on households, with data indicating the number of beneficiaries who have gained access to affordable broadband services. This reflects the program's success in addressing the digital divide among underserved communities.
• Narrowing of the Digital Divide: Evidence suggests that the ACP has played a pivotal role in narrowing the digital divide. Reports and studies demonstrate a reduction in disparities in internet access, particularly among low-income, rural, and minority communities.

Education Sector

• Improved Accessibility for Online Learning: The ACP has significantly improved accessibility to online learning resources, enabling students from disadvantaged backgrounds to engage effectively in remote education. 
• Case Studies Highlighting School Benefits: Numerous case studies have showcased the positive impact of the ACP on schools. These examples illustrate how the program has enabled educational institutions to bridge the digital gap, resulting in improved learning experiences and outcomes for students.

Small Businesses

• Facilitation of Digital Transformation: The Affordable Connectivity Program (ACP) has played a pivotal role in facilitating the digital transformation of small businesses. By providing access to affordable high-speed internet and digital tools, it has empowered these enterprises to adapt and thrive in the digital age.
• Stats and Studies Supporting Positive Impact: Statistics and studies underscore the positive impact of the ACP on local businesses. Data reveals substantial increases in online sales, expanded market reach, and improved financial stability for businesses in underprivileged regions. These findings emphasize the program's crucial role in driving economic development and fostering small business growth.

Criticisms of the ACP 

While the Affordable Connectivity Program (ACP) has made significant strides in bridging the digital divide, it is not without its share of criticisms.

Enrollment Disparities

Currently, the Affordable Connectivity Program (ACP) has enrolled 11.8 million households out of the 48 million eligible households nationwide. This indicates that approximately 25% of eligible beneficiaries are utilizing the program, highlighting disparities in enrollment efforts across states.

Notably, certain states are performing better in enrollment than others. While no state has exceeded 50% enrollment, California, Nevada, New Mexico, Louisiana, Kentucky, Ohio, and New York have all achieved over 30% enrollment among eligible households. In contrast, states with under 15% enrollment are primarily located in the upper plains, with New Hampshire and Vermont included in this group, totaling eleven states. 

What Happens When Funds Run Out

The enrollment of the 48 million eligible households in the Affordable Connectivity Program (ACP) is influenced by various factors, with direct outreach efforts being a significant driver. Beyond outreach, overcoming skepticism towards seemingly free programs and the effectiveness of Internet Service Providers (ISPs) in promoting and guiding subscribers through the enrollment process also play pivotal roles. These challenges are explored further in Hernan Galperin's analysis of the precursor Emergency Broadband Benefit (EBB) program, which shares similarities with the ACP.

As enrollment efforts continue, it's crucial to consider that the ACP's funds are depleting at a rate of nearly $350 million per month, accelerating as more households sign up. It becomes imperative to gauge the depletion rate and how it correlates with the eventual number of participants in the program.

Future of the ACP

The future of the Affordable Connectivity Program (ACP) is characterized by several key considerations:

Uncertainty of the Primary Funding

The future of the ACP faces uncertainty as its $14.2 billion primary funding is projected to deplete by mid-2024. Advocacy groups are urging Congress to extend the program due to its success, serving approximately 20.4 million households. Its potential expiration raises concerns about the consumer-ISP relationship and the broader plans for national broadband expansion, crucial for the Biden administration's connectivity efforts.

Anticipated expansions and adjustments

Colorado has initiated a campaign to increase ACP enrollment among its eligible residents. Currently, only 23% of the 792,000 eligible Coloradoans have enrolled. The Colorado ACP Act Now initiative, involving 71 partner cities, community groups, and institutions, collaborates with EducationSuperHighway. EducationSuperHighway aims to train community leaders and organizations to assist residents in ACP enrollment. They have also launched getacp.org/colorado, a website with a real-time virtual mobile assistant to simplify and support the enrollment process.

Strategies for continuous improvement

The FCC has acted upon 55% of the Government Accountability Office's (GAO) recommendations to enhance the Affordable Connectivity Program (ACP), as stated in a letter from Chairwoman Jessica Rosenworcel to Congress members. The GAO's report, from January 2023, aimed to refine ACP goals, establish consumer outreach processes, combat fraud, and improve language translation. The FCC has also taken steps to combat fraudulent ACP fund claims by requiring major ISPs like Charter, Cox, and Starry to verify subscriber eligibility with the National Verifier. Rosenworcel noted that more than half of the GAO's suggestions have been completed.

Completed actions involve developing anti-fraud policies, creating an anti-fraud strategy, establishing governance for fraud risk management, and enhancing internal controls to prevent ACP duplicate identification, subscriber identity verification, and address validation. Rosenworcel confirmed that efforts are underway to address the remaining recommendations, with a goal to complete them by year-end.

The BottomLine

The Affordable Connectivity Program (ACP) has emerged as a critical tool in narrowing the digital divide across the United States. With over 20 million households benefiting from affordable high-speed internet access, the ACP has made significant strides in fostering digital equity, especially in underserved communities. It has addressed enrollment disparities, facilitated access to online education, and empowered small businesses, all while ensuring consumer protections.

As we stand today, the ACP faces uncertainty in terms of its primary funding source, with the impending depletion of funds by mid-2024. The program's future hinges on securing ongoing financial support to sustain its impactful initiatives. While challenges persist, advocacy groups and states are actively working to extend and improve the ACP, recognizing its potential to bridge the digital divide and drive economic development. The ACP's legacy will depend on its ability to adapt, expand, and continue its mission of connecting those who need it most, ensuring equitable access to the digital resources that have become essential in today's world.