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FCC Orders Consumer Notices on ACP as Wind Down Looms

Affordable Connectivity Program is Forecasted to Run Out of Funding by April 2024

· Internet,ACP

On January 11, 2024, the Federal Communications Commission issued an order about the potential for the wind down of the Affordable Connectivity Program, which is running out of its initial $14.2 billion funding from the Infrastructure Investment and Jobs Act. While Congress has a bipartisan bill pending before it that would extend the funding with another $7 billion sponsored by Rep. Yvette Clarke (District 9 NY), it is questionable such a bill could pass given political tensions in Congress at present.

There are over 22 million ACP households that obtain discounted Internet access through the ACP program, and it is important to keep these households connected to the Internet, an essential service for our modern societal needs.

Important takeaways:

Deadline: Providers who are participating in the ACP program are required to stop enrolling consumers in the program by 11:59 PM ET on February 7, 2024, and the FCC will freeze ACP enrollment by February 8, 2024. Existing ACP subscribers may stay on the program until funding runs out (projected April 2024).

Consumer Notices: Further, the FCC orders three consumer notices to be provided to ACP households by providers. On January 25, 2024, ACP broadband providers must give a written notice to consumers on the ACP plan with information on the wind down of the program, the impact on their bill, the date of the last bill they will receive that will include the ACP benefit, and that they may change their service or opt out of continuing serivce after the end of ACP. A subscriber will be able to switch their plan without penalty.

It is expected that the FCC's Wireline Bureau will send out a 60-day notice announcing the end of ACP (expected late February 2024). Providers must send second and third notices to all ACP households, one within 15 days of the Bureau's Notice and another coinciding with the last bill or billing cycle on which the full ACP benefit is applied. The date of the end of the ACP program must be on this Notice and the amount the household will be billed for the serivce once the full ACP benefit is no longer available. The notice should remind the household of their ability to change their service plan and opt out of future service after the end of the ACP program. Providers are also encouraged by the FCC to provide information of other low cost Internet service plan it offers and provide customer service phone numbers and websites to explain such low cost plans. A consumer must "opt-in" to continuing service; a provider may not sign up an ACP customer for a new service plan without affirmative consent.