The legislation would provide needy California residents with affordable home internet service at no more than $15 per month.
NextLight said last June that IAP had launched with 20 more subscribers than were taking advantage of the ACP.
The study cited situations where consumers signed up for internet plans with “attractive rates” that surged in price within a year.
The California bill requiring providers to offer a $15 internet plan is similar to a New York law that went into effect last year.
The study says that healthcare savings alone would quadruple the annual cost of the ACP program, which the study pegs at $7.3 billion.
The low-cost internet program was part of the Affordable Broadband Act, which was passed under former New York Governor Andrew Cuomo.
The mandatory New York $15 internet offering is legal, an appeals court said, opening the door for other states to impose similar mandates.
The FCC’s press release implies that not updating advertising and data collection efforts related to the ACP are likely not accidents.
The Secure and Affordable Broadband Extension Act would provide a discount of as much as $30/mo for eligible households for ACP replacement.
In April, with the ACP’s end on the horizon, the Benton Institute surveyed more than 2,500 households about the potential impact.
The rating system scored low-cost internet plans based on criteria including cost, speed, data limits, technology, and more.
The report’s preliminary results show the tremendous impact the ACP termination will have on households and providers.
Empowerus and the SCAA are partnering to provide a bundle of benefits to eligible households, billed as an ACP replacement.
Burlington Telecom will offer two low-cost programs to replace ACP—the least expensive option at $9.95/month with 50 Mbps symmetrical service.
Companies recently announcing ACP alternatives include Breezeline, NextLight and LICT, which owns 10 small broadband providers.
USTelecom wants to fund the ACP through USF and expand the USF contribution base. A proposed Senate bill suggests the same thing.
Among the providers offering the ACP replacement programs are major cablecos and telcos, as well as several smaller rural providers.
Astound’s ACP replacement service, dubbed Internet First, is free for three months. The company also offers a free mobile line for a year.
Charter now offers a free mobile line for one year to home internet customers losing their Affordable Connectivity Program (ACP) benefit.
Mediacom Xtreme Connect is available to households enrolled in the SNAP and Medicaid programs, as well as others.
The proposed ACP funding was in an amendment to a bill re-authorizing the FAA. But the bill passed the Senate without amendments.
For customers losing ACP, Cox recommends several other plans, including one costing $9.95 per month. UScellular will offer a $12 discount.
Some providers will continue to offer low-cost plans, but without the $30-a-month ACP benefit, those offerings will no longer be free.