from Hacker News

The FCC Is Taking Steps to Wind Down the Affordable Connectivity Program

by _delirium on 1/27/24, 3:50 AM with 129 comments

  • by cowpig on 1/27/24, 2:35 PM

    I'd be interested to see some kind of economic analysis of this program.

    On its face, the government subsidizing a for-profit company that has a monopoly seems like a terrible idea. Comcast already extracts monopolistic profits and thus captures as much of the economic surplus as possible.

    Given that, price caps make a lot more sense to me. That's what has worked for utilities in general. If there's only one producer, they should be negotiating with one consumer.

    But maybe I don't see the whole picture. Did the subsidy agreements work as a carrot to entire Comcast to lower its prices for enough residents that it was a net benefit? Are the positive externalities of a connected population worth the cost? Did this program work in some other way than subsidy?

    Would love to learn more about this if anyone has good sources

  • by gnicholas on 1/27/24, 6:13 PM

    Whenever Comcast raised my rates, I would call and ask for a lower price or lower tier. In recent years, they always tried to get me to sign up for this. One rep claimed that I qualified because a student (my elementary aged child) lives in the home. Another claimed that I qualified because my child receives free lunch at school (as do all students at California public schools). He said that it was common in his experience for people to sign up under such pretenses.

    I don’t know to what extent this program is being abused, but it’s surely happening. The government is basically enabling the cable companies to keep upping their base price, knowing that any customer who is desperate enough for a discount will just find a way to qualify themselves for this program.

    I think being able to have internet at home is important. But there should have been limits put in place to ensure that this program was only being used for its intended purpose. Some lobbyist got rich off this thing, for sure.

  • by gurchik on 1/27/24, 6:51 AM

    The wind down period is a bit complicated so it's worth pointing it out.

    If you're already on the ACP, you will continue to receive the benefit until the funds run out, which is probably April unless Congress adds more funds which may not happen.

    If you're not already on the ACP, you still have a chance to enroll. You can send in an application until Feb 7, 11:59 pm ET, and if approved, you will have the opportunity to sign up with your local ISP. After completing both steps, you will then receive the benefit until April as said before.

  • by Mountain_Skies on 1/27/24, 2:34 PM

    I looked into this for a relative and the ACP provider space is full of scammy looking companies that don't appear to offer much above what is already offered by the Lifeline program. The big providers also participate in the program and unless you absolutely have no money for a monthly fee, seem to be the way to go instead of with the questionable resellers that fit their fee into the ACP subsidy completely. And don't get me started on the "low cost" trash devices they're selling for a "co-pay of $10". The program is good in theory but the implementation feels like it is coated in a thick layer of pond scum.

  • by foobarbazbanana on 1/28/24, 4:40 AM

    Keep thinking of what it takes to run other utilities and road networks. The size, the effort and how cheap they manage to accomplish it.

  • by jimmydoe on 1/28/24, 2:41 AM

    The poor always get punished. So America.

  • by silisili on 1/27/24, 7:02 AM

    I'm not going to opine on the program itself or who it serves, but they are -way- too loose with the money IMO.

    I make plenty, and still had my child's school, my ISP, cell phone carrier, and others browbeating me into applying. I even told them I didn't know much about it, but think I probably don't qualify, and they kinda imply 'oh theres other ways.' I did qualify, because my daughter's school is a CEP school. Out of curiosity I did as they were instructing, and sure enough it was approved without issue. Why? What's in it for my ISP and cell provider to give me a discount? Were they receiving more back in kickbacks?

    I didn't renew because ultimately I felt guilty, but have to wonder how many people who didn't need it took advantage.

    On the plus side, it did allow me to keep Comcast's "secret" $30/mo plan, that they let me keep after it expired.