Providers to Get Max $16 per ACP Customer in May

Due to a lack of funding, the FCC formally announced that April will be the last full month of the ACP (Affordable Connectivity Program).

The commission added that it will give providers a decision later this month regarding how much to anticipate for every customer in May.

According to a public notice released by the FCC yesterday, non-tribal providers participating in the Affordable Connectivity Program (ACP) should anticipate receiving no more than $16 per user for the month of May—and possibly as little as $7.

As of June, the FCC will no longer provide benefits to the ACP program, which helps low-income consumers defray some of the cost of broadband access.

The program is about to run out of funding unless federal legislators decide to provide additional funding, resulting in lower benefits.

However, The non-tribal benefit will continue at the regular $30 level through the month of April.

May payments to tribal providers are anticipated to range from $18 to $39, a decrease from $75 per month. The monthly benefit for connected devices would now range from $24 to $53 instead of $100 per device.

The FCC stated on the estimations, “Take into account factors such as open claims for past service months, recent program activity, and claims trends,”

The commission anticipates releasing the final May ACP benefit total in April.

With their April payment, providers might choose to stop participating in the ACP and refrain from providing a benefit in May.

Additionally, providers can choose to contribute to their customers’ ACP service in May to maintain the benefits at the current level or above what the FCC will pay for that month.

The Universal Service Administrative Company (USAC) will send out surveys to ACP providers by next Tuesday, asking whether they plan to participate in the ACP in May.

Participating providers must complete the survey within two weeks of receiving it.

The notice stated, “We direct providers to notify the Universal Service Administrative Company (USAC) of their intent to participate during the May 2024 service month by filling out the survey that USAC will distribute to providers.”

“USAC will distribute the survey to providers within a week of the release of this public notice. Providers will have two weeks from the distribution of the survey to respond. Timely responses to the survey will aid our administration of the wind-down.”

Given that President Biden, FCC Chair Jessica Rosenworcel, consumers, and other stakeholders have not persuaded legislators to provide the ACP with additional funds, it is highly likely that the ACP’s future remains in question.