The end of the Affordable Connectivity Program (ACP) by the US government is causing thousands of households to lose access to the internet, especially for those with low incomes. Charter Communications recently reported a significant loss of 154,000 internet subscribers, with many canceling their services after the federal discount was discontinued. About 100,000 of these subscribers were benefiting from the ACP’s $30 monthly broadband discounts, which in some cases made internet service free for consumers.
The ACP, which ended in May due to a lack of funding from Congress, aimed to provide affordable internet access to households in need. The Biden administration had requested $6 billion to fund the program through December 2024, but Republicans argued against it, calling the program “wasteful.” Their main concern was that most of the ACP funds were going to households that already had broadband before the subsidy was introduced.
Federal Communications Commission Chair Jessica Rosenworcel warned that terminating the discounts would result in reduced internet access. An FCC survey showed that 77 percent of participating households would either change their plan or discontinue internet service once the discounts expired.
Charter’s recent earnings report for the second quarter of 2024 highlighted the impact of users canceling internet service after losing the discount. The report indicated a decrease of 154,000 residential internet customers, primarily due to the end of the ACP subsidies. This was a significant shift from the previous quarter when there was an increase of 70,000 customers.
Research conducted earlier in 2024 revealed that Charter served over 4 million ACP recipients, with up to 300,000 at risk of discontinuing internet service without the discounts. Given that ACP recipients must meet low-income criteria, losing the subsidies could strain their finances, even if they decide to continue paying for internet service.
Charter’s CEO, Chris Winfrey, emphasized the importance of customers’ ability to pay for internet service, especially low-income households. The company made retention offers to customers who previously received ACP subsidies to prevent further customer losses. While Charter managed to retain most ACP subscribers, the long-term financial strain on low-income households without a new subsidy remains a concern.
In addition to the ACP, the FCC’s Lifeline program providing $9.25 monthly discounts is also facing challenges following a recent court ruling. The program, funded by the Universal Service Fund, was deemed unconstitutional by the US Court of Appeals for the Fifth Circuit. This ruling creates uncertainty about the future of the program, potentially leading to further obstacles for households in need of affordable communication services.
As the debate over funding for programs like the ACP and Lifeline continues, the implications for low-income households and their access to essential services like the internet remain a pressing issue. The need for sustainable solutions to ensure equitable access to communication services for all Americans is more critical than ever.
