As digital equity advocates push Congress to replenish the rapidly diminishing funds that support the Affordable Connectivity Program (ACP), a recently published report should help bolster the case that the program – which subsidizes the cost of monthly Internet service for income-eligible households – won’t just help more Americans get broadband access, it can also incent Internet service providers (ISPs) to make infrastructure investments in unserved and underserved areas.

The report, titled "Closing the Digital Divide Benefits Everyone, Not Just the Disconnected" – published by Common Sense and the Boston Consulting Group (BCG) – emphasizes the benefits of universal Internet access across education, health care, government services, and employment. It makes the case that universal connectivity would allow institutions to “integrate Internet-based technologies into their services, improving them for the benefit of all.”

Most notably, the report advocates for increased ACP enrollment, arguing that in addition to providing low-income households some short-term relief from pricey Internet bills, the program can provide an economic incentive for ISPs to invest in unserved and underserved communities by increasing the return on investment (ROI) in areas that have previously been considered unprofitable.

Since the launch of the Affordable Connectivity Program last January, millions of households have benefitted from the $30/month connection subsidy to help pay for their broadband bills. The program serves as a necessary bridge in a failed marketplace, dominated nationally by a small number of regional monopolies driven by shareholders to charge the highest price possible. 

Along the way, ILSR and a host of other research and advocacy organizations have been digging into the American Connectivity Program (ACP) data in order to better understand how the program has operated over the last year, and how we can work collectively to improve education and outreach efforts and make sure as many households as possible will benefit. From this work we created an ACP Dashboard to collect and visualize useful data to support the critical work of digital navigators, nonprofits, and local governments.

Explore the Affordable Connectivity Program here, and read more about why we created it. 

Reckognizing the Gap

In addition to tracking how much of the $15.5 billion fund ($1.3 billion was carried over from the Emergency Broadband Benefit and $14.2 billion was allocated for the ACP] is left and predicting when it’ll run out (April 2026 at current rates), keeping an eye on state- and zip-code level use and enrollment, and following what types of connections households are using the benefit to pay for, an important part of this work has been tracking data across major metropolitan areas across the country.  

As we continue to analyze the data and refine our tools to support work at the local level, we have found that the percentage of households in major metro areas (and likely elsewhere) that are actually using the program is smaller than the percentage of households enrolled in the program. 

On January 1st, 2022, the Federal Communications Commission launched the Affordable Connectivity Program (ACP) with $14.2 billion in funding designed to help American households pay for the monthly cost of their Internet subscription. In May, we published a story about the fate of the program, based on a prediction model we built that was intended to visualize how long we might expect the $14.2 billion fund to last before needing new Congressional appropriations to sustain it. Back then, the data showed that the fund would run out some time in 2024.

We’re back today not only with a new and improved model (based both on more granular geographic data and fed by an additional 16 weeks of enrollment data), but a new dashboard that pulls together a host of information from the Universal Service Administrative Company on where and how the Affordable Connectivity Program money is being spent. 

A New Resource for Broadband Advocates, Local Policy Makers, and Elected Officials

Located at ACPdashboard.com, this new resource from ILSR includes information local broadband advocates, nonprofits, state legislators, and policy makers need to know about where enrollment efforts and expended funds stand today. It includes a breakdown by state for how enrollment numbers stand (as well as an estimate for the amount spent in each state so far), the current national eligible enrollment rate, information for 30 metropolitan areas, how much is being spent on service support versus devices, how many households are using the ACP for mobile versus wireline service, and the total left in the ACP fund. Our new prediction model shows that a little more than $410 million is leaving the bank account every month. 

On January 1st, 2022, the Federal Communications Commission launched the Affordable Connectivity Program (ACP) with $14.2 billion in funding designed to help American households pay for the monthly cost of their Internet subscription. In May, we published a story about the fate of the program, based on a prediction model we built that was intended to visualize how long we might expect the $14.2 billion fund to last before needing new Congressional appropriations to sustain it. Back then, the data showed that the fund would run out some time in 2024.

We’re back today not only with a new and improved model (based both on more granular geographic data and fed by an additional 16 weeks of enrollment data), but a new dashboard that pulls together a host of information from the Universal Service Administrative Company on where and how the Affordable Connectivity Program money is being spent. 

A New Resource for Broadband Advocates, Local Policy Makers, and Elected Officials

Located at ACPdashboard.com, this new resource from ILSR includes information local broadband advocates, nonprofits, state legislators, and policy makers need to know about where enrollment efforts and expended funds stand today. It includes a breakdown by state for how enrollment numbers stand (as well as an estimate for the amount spent in each state so far), the current national eligible enrollment rate, information for 30 metropolitan areas, how much is being spent on service support versus devices, how many households are using the ACP for mobile versus wireline service, and the total left in the ACP fund. Our new prediction model shows that a little more than $410 million is leaving the bank account every month. 

In a release today, the Federal Communications Commission (FCC) announced it was voiding applications by two of the biggest Rural Digital Opportunity Fund (RDOF) bidders from December 2020. This includes more than $885 million for Low-Earth Orbit (LEO) provider Starlink and more than $1.3 billion for LTD Broadband, Inc.

LTD’s original winning bids are spread across 15 states, but there has been speculation brewing since late last year from industry experts as to if funds would be released at all. We’ve seen 12 releases from the FCC since late winter authorizing funds for most of the winning bidders (from the monopoly providers to consortia of rural electric cooperatives), which we’ve collected in our Rural Digital Opportunity Fund Dashboard here. Conversely, there has been relatively little conversation about why Starlink had not yet received any of its winning bids.

Skepticism about Speed, Deployment and Cost

On Monday last week, the White House made much ado of an announcement that it had secured commitments from a collection of large Internet Service Providers (ISPs) to adjust speed tiers and monthly costs for their existing plans so as to be able to offer a $30/month, minimum 100 megabit per second (Mbps) download offering for low-income households across the country. The goal was to create plans for households that qualify for the $14.2 billion Affordable Connectivity Program (ACP) to get access to faster connections while ensuring no additional out-of-pocket costs. The recent White House announcement said that the 20 private-sector providers that have joined together cover 80 percent of households (skewed towards urban areas).

There’s no argument that the move will directly benefit hundreds of thousands of households by boosting their wireline connections and reducing their monthly expenses. And yet, it’s a treatment of the symptom rather than the disease, as the administration continues to refuse to address the larger structural dynamics that have made Internet access increasingly expensive in this country and perpetuated a broken marketplace via poor regulation and a lack of strong leadership.

This will become immediately apparent the moment that the Affordable Connectivity Program runs out of money, and those households suddenly face higher costs with no option for recourse. Our analysis shows that even if only a third of eligible households ultimately enroll (ten percent more households than are enrolled today), absent an additional allocation, the fund will be exhausted by the beginning of November 2024. But even under the best-case scenario, with the benefit reaching as many people as possible, current enrollment rates show that only 68 percent of eligible households will be able to sign up before the funds run out. In this model, the money will be exhausted just 18 months from now, on January 1st, 2024.

A Necessary Benefit, But There Are Enrollment Disparities

What is digital equity? And why is access to ubiquitous, reliable and affordable high-speed Internet service so vital? The technological issues involved can sometimes seem confusing, especially for those who came of age before the Internet fundamentally transformed how we interact.

That’s why the Institute for Local Self Reliance, with support from AARP, has created the Exploring Digital Equity Fact Sheet Series. The series contains six user-friendly, easy-to-understand fact sheets to help demystify the challenges associated with creating digital equity.

We are releasing the entire series today, while AARP will feature the fact sheets as part of its Livable Communities initiative, an effort to support neighborhoods, towns, cities and rural areas in creating safe, walkable streets; age-friendly housing and transportation options; access to needed services; and opportunities for residents of all ages to participate in community life. 

Both ILSR and AARP have created landing pages for the fact sheets as well. You can find our landing page here, and the fact sheet landing page for AARP here.

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The fact sheets series ultimately highlight how expanding Internet access to everyone who wants it isn’t an infrastructure problem alone. Achieving digital equity for everyone in a community is a multi-faceted endeavor, and requires engaging and activating an array of stakeholders. The Exploring Digital Equity Fact Sheet Series unpacks the issues, challenges, and opportunities today.