Federal Broadband Programs

The Affordable Connectivity Program (ACP) that provides a discount for millions of homes will disappear unless Congress takes action to continue it. Most big internet service providers (ISPs) have announced how they will handle broadband for low-income homes after the end of ACP. 

Representatives of NTCA–The Rural Broadband Association met with Hayley Steffen, legal advisor to Commissioner Anna Gomez for wireline and space, to discuss the impacts of unreliable Broadband Data Collection (“BDC”) data and “broadband overreach” on policy and funding decisions made by the Federal Communications Commission and provided a series of recommendations related to broadband availability mapping and BDC processes. While the FCC decided in 2021 that what a provider “makes available” would be determined by reference to a provider’s “advertised” levels of performance, and while it de

Rep Brandon Williams (R-NY) has introduced a bill to fund the Affordable Connectivity Program (ACP) through Fiscal Year 2024. H.R. 8466, the Affordable Connectivity Program Improvement and Extension Act of 2024, will replenish the Affordable Connectivity Fund with $6 billion by amending Section 521(4)(a) of the Consolidated Appropriations Act, 2024.

An appealing way to finance fiber builds is through asset-backed securities (ABS). However, this is only available to established companies that actually have fiber assets, which they can leverage to secure a lower cost of debt. It’s not something available to new entrants in the fiber space. Since the introduction of the Broadband Equity Access and Deployment (BEAD) program, many private equity (PE) investors have entered the fiber market.

The pace of US broadband subscriber growth slowed considerably in the first quarter of 2024 as fiber, fixed wireless access (FWA) and cable broadband service providers collectively turned in results that were worse than what they posted in the year-ago period. Total industry net additions, including or excluding FWA and geosynchronous (GEO) satellite broadband providers, decelerated noticeably in Q1 2024.

Lawmakers are butting heads over a provision within the Broadband Equity Access and Deployment (BEAD) program that allows states to require low-cost service options from participating service providers. Democrats are calling it an affordability policy. Republicans say it's heavy-handed government regulation. As part of the BEAD planning process, the National Telecommunications and Information Administration (NTIA) is considering each state’s definition of a low-cost option, provided that it meets the standards laid out in the program’s statute.

Evan Feinman, director for the Broadband Equity, Access and Deployment (BEAD) program with the National Telecommunications and Information Administration, provided an update on the program. All states have submitted their Volume 1 proposals to NTIA, and Feinman said that nearly all Volume 1 proposals are approved. A check of NTIA’s Progress Dashboard today shows that only Florida, Maryland and Minnesota have yet to have their Volume 1s approved.

I have been asked my opinion several times about Rural Digital Opportunity Fund (RDOF) amnesty—letting RDOF winners walk away from their obligations without big penalties. There is no easy answer to the question. It’s certainly a timely topic, since we are seeing internet service providers (ISPs) walk away from RDOF. There are several good arguments to be made that favor some kind of amnesty.

On May 16, 2024, Federal Communications Commission Chairwoman Jessica Rosenworcel appeared before the House of Representatives Financial Services and General Government Subcommittee to review the Federal Communications Commission’s Fiscal Year 2025 budget request. The Chairwoman highlighted some of the FCC's critical work, including the National Broadband Map and efforts to stop robocalls. She also emphasized the need for the FCC's spectrum auction authority to be reinstated, and spoke about the impending end of the Affordable Connectivity Program.

Some $100 billion in U.S. broadband investment will be spent in rural areas before the end of the decade to close the digital divide. Yet industry leaders warn that a middle mile gap will remain if we aren’t careful.