Affordable Connectivity Program (ACP)

TruConnect urged the FCC to also freeze benefit transfers for affordable connectivity program subscribers when the new enrollment freeze begins Feb. 8 (see 2401110072. The company made its argument during meetings with aides to Commissioners Brendan Carr, Nathan Simington and Geoffrey Starks. TruConnect also met with Wireline Bureau staff, said an ex parte filing posted Monday in docket 21-450. "An enrollment transfer freeze may provide additional time for Congress to renew ACP program appropriations by enabling the program funds to last longer than the projected late April expiration of funds," the company said.

The FCC has made “significant progress” in its handling of the affordable connectivity program during 2022, but “improvements were needed” in measuring and providing public transparency on grant recipients’ spending of program money, the Office of Inspector General said in a Jan. 22 memo to Chairwoman Jessica Rosenworcel and other commissioners that publicly circulated Tuesday. Some congressional Republican leaders have raised concerns about the FCC’s handling of ACP amid a push to provide the program stopgap funding to keep it running through the end of this year. The Wireline Bureau said earlier this month it would freeze new enrollments Feb. 8 as part of the program's wind-down process.

California should allow low-income consumers to apply for the state's LifeLine program without providing the last four digits of their social security numbers, consumer advocates told the California Public Utilities Commission Friday. The CPUC last month sought comments about expanding the program for those without SSNs (see 2312200019). Lifeline providers said they would consider it if the state makes up for a possible gap in federal funding and waives liability for incorrect enrollments.

Telephone and Data Systems and UScellular stock prices rose Friday after T-Mobile Chief Financial Officer Peter Osvaldik said his company was eyeing UScellular. The boards of TDS and UScellular are exploring the future of the carrier and “strategic alternatives," the companies said in August (see 2308070043). TDS was up 5.85% to $20.08 Friday, UScellular 3.26% to $46.51.

Vermont state legislators could need to step in should the affordable connectivity program (ACP) end soon, the Vermont Community Broadband Board said last week. Losing the ACP would “remove the floor for low-income Vermonters, the most vulnerable of our residents, and require considerable alternative funding to achieve digital equity,” the board’s Executive Director Christine Hallquist said in a Thursday letter to Vermont legislators. The ACP helps 25,000 Vermont residents afford internet, the letter said. “When this program ends, many if not all these families may no longer be able to afford their internet service.” Hallquist noted the board supports a bill in Congress from Sen. Peter Welch, D-Vt., extending funding through the rest of the year (see 2401100056). But Congress hasn’t approved funding and ISPs are sending customers letters about the program’s possible end, Hallquist said. “We are nearing the time when State action may be required to ensure Vermonters do not suffer from the inaction of Congress. Whether this action requires a temporary, or a more permanent fix, remains to be seen.”

Peacock subscribers were up and residential broadband customers slightly down in Q4, Comcast said Friday as it announced its Q4 2023 results. In a call with analysts, President Mike Cavanagh said that while Comcast hopes to see renewed funding of the Affordable Connectivity Program, the company has begun communicating with its 1.4 million ACP participants and "will provide a range of options" if funding is discontinued. Revenue for the quarter was $31.3 billion, up 2.3% year over year, Comcast said. It added that during 2023, its network grew, passing an additional 1.1 million homes and businesses. It now has 62.5 million passings. Cavanagh said Comcast should be "at or above" that level in 2024. Comcast said it started rolling out multi-gig symmetrical speeds in some markets in Q4, and deployed mid-split technology to 35% of its footprint as of the end of the year as a route to faster broadband speeds. Chief Financial Officer Jason Armstrong said mid-split deployments should be across 50% of its network by year's end. Peacock ended the year with 31 million subscribers, adding 3 million in Q4, Comcast said. It said Peacock revenue for the quarter topped $1 billion, up 47%. Comcast ended the year with 29.7 million residential broadband subs, down slightly from 29.8 million in Q4 2022, and 6.6 million wireless lines, up from 5.3 million at 2022’s end. It ended Q4 with 14.1 million video subs, down 2 million year over year. Cavanagh said broadband competition "is likely to remain at these levels" for now; however, broadband remains "a very large, healthy and profitable market." LightShed’s Walt Piecyk posted on X that broadband subscriber trends aren’t likely to change soon, with revenue growth from price hikes instead. Asked about Comcast's participation in NTIA's broadband equity, access and deployment program, Comcast Cable CEO Dave Watson said the company "plan[s] to participate where it is consistent with our business goals," but the BEAD process "is still in flux." He said Comcast is looking at wireless/broadband bundled packages as a route to further wireless growth.

The FCC will continue updating Congress about the affordable connectivity program's status in hopes of convincing lawmakers for money to keep it running, Chairwoman Jessica Rosenworcel told reporters Thursday after the commissioners’ open meeting (see 2401250064). The FCC expects the initiative will exhaust its $14.2 billion allocation in April. The Wireline Bureau said earlier this month it would freeze new enrollments Feb. 8 as part of the program's wind-down process (see 2401110072).

Wireless carriers in comments this week condemned a “dynamic approach” to data and other proposals for California’s low-income program. The California Public Utilities Commission received feedback Wednesday on an Oct. 30 staff proposal for setting California LifeLine specific support amounts (SSA) and minimum service standards (MSS). Some urged the CPUC to tap the brakes, especially with uncertainty about continued funding for the federal affordable connectivity program (ACP).

Industry officials are concerned about uncertainty surrounding the FCC's affordable connectivity program following the agency's recent announcement that ACP wind-down procedures were beginning and the ACP Extension Act was introduced (see 2401100056). Some warned about challenges associated with keeping the more than 22 million enrolled households online should the program end before additional funding is available. Even if the ACP Extension Act is successful, some observers predicted recipients may not return owing to reenrollment confusion or other issues.

Verizon Tuesday reported it added a net 318,000 consumer wireless postpaid phone customers in Q4, compared with just 41,000 a year ago. Verizon also saw 375,000 fixed wireless adds in the quarter, bringing its total to more than 3 million. Officials said Verizon is on track to hit as many as 5 million by the end of 2025. Verizon was the first of the major wireless carriers to report Q4 results. Verizon finished up 6.7% Tuesday at $42.23 per share.