Fierce

With the future of the Affordable Connectivity Program (ACP) looking grimmer every day, wireless operators and mobile virtual network operators (MVNOs) are preparing for its demise and weighing their alternatives. The ACP is expected to run out of money by mid-May, leaving millions of Americans without discounted internet services.

Zayo Group unveiled a slew of upgrades to its fiber infrastructure, including the acquisition of a new long-haul dark fiber route connecting Washington, DC and Atlanta. Zayo acquired the route through a secretive "technology partnership," but Chaz Kramer, Zayo's VP of product management, said the name of the company and price tag for the acquisition “aren’t being disclosed." In things that are being disclosed, the company announced that it built a dark fiber route connecting Columbus, Ohio to Pittsburgh, Pennsylvania.

In Massachusetts a consulting program is helping local municipalities navigate digital equity planning. There is no flow of money to municipalities under said program. Instead, the Municipal Digital Equity Planning Program, spearheaded by the Massachusetts Broadband Institute (MBI), pairs towns and cities with consultants to develop strategic plans for digital equity within their communities.

One tactic that both private and public fiber companies are using to raise capital is to tap asset backed security (ABS), according to the analysts at TD Cowen. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital, such as corporate bonds.

April is the last fully funded month for the Affordable Connectivity Program (ACP), and the forecast for its future is looking grim. On March 23, the Senate Appropriations Committee approved Congress’ final, fiscal year 2024 spending package, worth a whopping $1.2 trillion. The kicker? The over-1000-page legislation contained no mention of additional funding for the ACP. And the numbers aren’t looking pretty. The Federal Communications Commission (FCC) has appropriated a total of around $17 billion for the ACP and its predecessor the Emergency Broadband Benefit program.

A private equity firm based in Canada may prevent a lot of rural US Midwesterners from getting fiber broadband. But that’s OK with the Federal Communications Commission (FCC) and National Telecommunications and Information Administration (NTIA) because it’s all perfectly legal. Mercury Broadband, which is majority owned by the private equity firm Northleaf Capital Partners, has claimed it covers vast swathes of Michigan, Kansas and Indiana with its fixed wireless access (FWA) broadband service.

If Congress doesn’t act soon, the Affordable Connectivity Program (ACP) is expected to run out of money by the end of April, leaving millions of Americans without discounted internet services.

It’s a no-brainer that fiber providers need some way to get the money they need for their passings targets, whether that’s tapping into government grants or private equity support. However, Frontier Communications is pursuing a third option. In August 2023, Frontier inked a $2.1 billion asset-backed securitization (ABS) deal – the first public company in the U.S.

Just because it isn’t as futuristic as we pictured doesn’t mean it hasn’t happened yet: Smart devices are on the rise, and they’re creeping into the broadband world. Our refrigerators aren’t making us sandwiches and we don’t have laundry folding robots (yet), but subtle smart home devices (a.k.a. any gadget with internet connectivity) like washing machines, smoke detectors and locks are starting to nestle into more homes.