Republicans Kill Popular FCC Program That Made Broadband Affordable For The Poor

Broadband

from the this-is-why-we-can't-have-nice-things dept

The FCC’s Affordable Connectivity Program (ACP), part of the 2021 infrastructure bill, currently provides 23+ million low-income Americans a $30 broadband discount every month. While it didn’t get much hype, that’s a big deal in a country where broadband affordability is a massive obstacle to adoption due to muted competition and high service prices.

But those 23 million Americans are poised to soon lose the discount because Republicans — who routinely dole out billions of dollars on far dumber fare — refused to fund a $4-$7 billion extension.

As a result, the FCC is notifying households that signed up for broadband service during the pandemic that they’re about to see a dramatic spike in their broadband bills starting in April:

“Many of these households have contacted the Commission to express their disappointment
and frustration that they can no longer sign up for the program. Others have contacted the
agency to express concern about the impending end of the program, noting its impact on older adults, families with school children, and military families at risk of losing their internet
service without the ACP benefit,” said Chairwoman Rosenworcel in her letter to Congress.
“They worry that without ACP support they will lose access to employment, education, health
care, and more.”

Republicans claim they opposed the ACP because it was “wasteful.” But these are the same Republicans that gave AT&T a $42 billion tax break for doing nothing (technically less than nothing: they eliminated 42,000 jobs not long after). Republicans love slathering telecom giants with badly managed subsidies, tax breaks, regulatory favors, and merger approvals in exchange for bupkis. But helping the poor? No way.

For whatever reason the FCC is too polite to clearly mention that opposition by numerous key Republicans are the reason the bill is going away. Similarly, the press outlets that can be bothered to cover this kind of stuff (it doesn’t get engagement and clicks so why bother) also often can’t be bothered to mention that the GOP is directly responsible for the death of the program.

Republican telecom policy basically involves letting giant regional monopolies crush competition underfoot, rubber stamping anti-competitive mergers and consolidation, and opposing all broadband consumer protections. The argument is this creates some sort of innovative Utopia; the reality is it results in market failure, regulatory capture, patchy coverage, high prices, and slow speeds.

Democrat telecom policy usually involves either doing the same thing as Republicans (see: Joe Manchin), paying empty lip service to “solving the digital divide,” or proposing fairly toothless initiatives years after they’re needed (see: the broadband nutrition label). Most Democratic telecom policy leaders can’t even acknowledge that telecom monopolies exist and cause competition problems in public statements.

Still, Democrats occasionally stumble into the path of productive ideas in the realm of antitrust reform and consumer protection. The GOP genuinely could not care less about the American telecom/broadband/television consumer, and there are 40+ years of hard evidence.

The ACP was initially a rare, bipartisan way to bring some temporarily relief to low-income users struggling to afford access. Throwing money at big telecoms to temporarily lower prices (that wouldn’t be high in the first place without their assault on competition) isn’t ideal; but it was at least something.

Now, low-income Americans who signed up for already expensive service will see a dramatic uptick in their broadband prices, potentially severing them from opportunity. Press outlets won’t cover it because the subject doesn’t get enough ad engagement. And if they do cover it, their “fair and balanced” “both sides” approach often gives the GOP policy credibility the party doesn’t actually deserve.

The GOP considers it a win that the infrastructure bill won’t get credit for helping the poor during election season, knowing the infotainment press lacks the backbone to clearly illustrate how the decision hurts the poor (a large percentage of the GOP’s own constituents). Democratic FCC regulators won’t really fight for it because being too politically combative puts future think tank or lobbying positions at risk.

So U.S. telecom policy will stumble on apace, with Americans paying some of the highest prices in the developed world for substandard broadband access. Same as it ever was.

Filed Under: ACP, affordable, broadband, fcc, fiber, high speed internet, infrastructure bill, policy, telecom