FCC

congress-lets-broadband-funding-run-out,-ending-$30-low-income-discounts

Congress lets broadband funding run out, ending $30 low-income discounts

affordable connectivity program, FCC, Policy / /

Affordable Connectivity Program —

ACP gave out last $30 discounts in April; only partial discounts available in May.

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Illustration of fiber Internet cables

Getty Images | Yuichiro Chino

The Federal Communications Commission chair today made a final plea to Congress, asking for money to continue a broadband-affordability program that gave out its last round of $30 discounts to people with low incomes in April.

The Affordable Connectivity Program (ACP) has lowered monthly Internet bills for people who qualify for benefits, but Congress allowed funding to run out. People may receive up to $14 in May if their ISP opted into offering a partial discount during the program’s final month. After that there will be no financial help for the 23 million households enrolled in the program.

“Additional funding from Congress is the only near-term solution for keeping the ACP going,” FCC Chairwoman Jessica Rosenworcel wrote in a letter to members of Congress today. “If additional funding is not promptly appropriated, the one in six households nationwide that rely on this program will face rising bills and increasing disconnection. In fact, according to our survey of ACP beneficiaries, 77 percent of participating households report that losing this benefit would disrupt their service by making them change their plan or lead to them dropping Internet service entirely.”

The ACP started with $14.2 billion allocated by Congress in late 2021. The $30 monthly ACP benefit replaced the previous $50 monthly subsidy from the Emergency Broadband Benefit Program.

Biden urges Republicans to support funding

Some Republican members of Congress have called the program “wasteful” and complained that most people using the discounts had broadband access before the subsidy was available. Rosenworcel’s letter today said the FCC survey found that “68 percent of ACP households stated they had inconsistent or zero connectivity prior to ACP.”

Senate Commerce Committee Chair Maria Cantwell (D-Wash.) included $7 billion for the program in a draft spectrum auction bill on Friday, but previous proposals from Democrats to extend funding have fizzled out. The White House today urged Congress to fund the program and blamed Republicans for not supporting funding proposals.

“President Biden is once again calling on Republicans in Congress to join their Democratic colleagues in support of extending funding for the Affordable Connectivity Program,” the White House said.

Some consumer advocates have called on the FCC to fund the ACP by increasing Universal Service Fund collections, which could involve raising fees on phone service or imposing Universal Service fees on broadband for the first time. Rosenworcel has instead looked to Congress to allocate funding for the ACP.

“Time is running out,” Rosenworcel’s letter said. “Additional funding is needed immediately to avoid the disruption millions of ACP households that rely on this program for essential connectivity are already starting to experience.”

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Apple’s iMessage is not a “core platform” in EU, so it can stay walled off

Apple, beeper, beeper mini, brendan carr, Digital Markets Act, European Union, FCC, federal communications commission, iMessage, IPhone, messaging, Policy, SMS, Tech / /

Too core to fail —

Microsoft’s Edge browser, Bing search, and ad business also avoid regulations.

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Apple Messages in a Mac dock

Getty Images

Apple’s iMessage service is not a “gatekeeper” prone to unfair business practices and will thus not be required under the Fair Markets Act to open up to messages, files, and video calls from other services, the European Commission announced earlier today.

Apple was one of many companies, including Google, Amazon, Alphabet (Google’s parent company), Meta, and Microsoft to have its “gatekeeper” status investigated by the European Union. The iMessage service did meet the definition of a “core platform,” serving at least 45 million EU users monthly and being controlled by a firm with at least 75 billion euros in market capitalization. But after “a thorough assessment of all arguments” during a five-month investigation, the Commission found that iMessage and Microsoft’s Bing search, Edge browser, and ad platform “do not qualify as gatekeeper services.” The unlikelihood of EU demands on iMessage was apparent in early December when Bloomberg reported that the service didn’t have enough sway with business users to demand more regulation.

Had the Commission ruled otherwise, Apple would have had until August to open its service. It would have been interesting to see how the company would have complied, given that it provides end-to-end encryption and registers senders based on information from their registered Apple devices.

Google had pushed the Commission to force Apple into “gatekeeper status,” part of Google’s larger campaign to make Apple treat Android users better when they trade SMS messages with iPhone users. While Apple has agreed to take up RCS, an upgraded form of carrier messaging with typing indicators and better image and video quality, it will not provide encryption for Android-to-iPhone SMS, nor remove the harsh green coloring that particularly resonates with younger users.

Apple is still obligated to comply with the Digital Markets Act’s other implications on its iOS operating system, its App Store, and its Safari browser. The European Union version of iOS 17.4, due in March, will offer “alternative app marketplaces,” or sideloading, along with the tools so that those other app stores can provide updates and other services. Browsers on iOS will also be able to use their own rendering engines rather than providing features only on top of mobile Safari rendering. Microsoft, among other firms, will make similar concessions in certain areas of Europe with Windows 11 and other products.

While it’s unlikely to result in the same kind of action, Brendan Carr, a commissioner at the Federal Communications Commission, said at a conference yesterday that the FCC “has a role to play” in investigating whether Apple’s blocking of the Beeper Mini app violated Part 14 rules regarding accessibility and usability. “I think the FCC should launch an investigation to look at whether Apple’s decision to degrade the Beeper Mini functionality… was a step that violated the FCC’s rules in Part 14,” Carr said at the State of the Net policy conference in Washington, DC.

Beeper Mini launched with the ability for Android users to send fully encrypted iMessage messages to Apple users, based on reverse-engineering of its protocol and registration. Days after its launch, Apple blocked its users and issued a statement saying that it was working to stop exploits and spam. The blocking and workarounds continued until Beeper announced that it was shifting its focus away from iMessage and back to being a multi-service chat app, minus one particular service. Beeper’s experience had previously garnered recognition from Senators Elizabeth Warren (D-Mass.) and Amy Klobuchar (D-Minn.).

Ars has reached out to Apple, Microsoft, and Google for comment and will update this post if we receive responses.

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Republicans slam broadband discounts for poor people, threaten to kill program

affordable connectivity program, FCC, Policy / /
Senate Minority Whip John Thune gestures with his right hand while speaking to reporters.

Enlarge / Senate Minority Whip John Thune (R-S.D.) speaks to reporters after the weekly Senate Republican caucus lunch on November 14, 2023, in Washington, DC.

Getty Images | Anna Rose Layden

Republican members of Congress blasted a program that gives $30 monthly broadband discounts to people with low incomes, accusing the Federal Communications Commission of being “wasteful.” The lawmakers suggested in a letter to FCC Chairwoman Jessica Rosenworcel that they may try to block funding for the Affordable Connectivity Program (ACP), which is expected to run out of money in April 2024.

“As lawmakers with oversight responsibility over the ACP, we have raised concerns, shared by the FCC Inspector General, regarding the program’s effectiveness in connecting non-subscribers to the Internet,” the lawmakers wrote. “While you have repeatedly claimed that the ACP is necessary for connecting participating households to the Internet, it appears the vast majority of tax dollars have gone to households that already had broadband prior to the subsidy.”

The letter was sent Friday by Sen. John Thune (R-S.D.), Sen. Ted Cruz (R-Texas), Rep. Cathy McMorris Rodgers (R-Wash.), and Rep. Bob Latta (R-Ohio). Cruz is the top Republican on the Senate Commerce Committee, and Thune is the top Republican on the Subcommittee on Communications, Media, and Broadband. McMorris Rodgers is chair of the House Commerce Committee, and Latta is chair of the House Subcommittee on Communications and Technology.

The letter questioned Rosenworcel’s testimony at a recent House hearing in which she warned that 25 million households could lose Internet access if Congress doesn’t renew the ACP discounts. The ACP was created by congressional legislation, but Republicans are wary of continuing it. The program began with $14.2 billion a little less than two years ago.

“At a hearing before the House Energy and Commerce Committee on November 30, 2023, you asserted—without evidence and contrary to the FCC’s own data—that ’25 million households’ would be ‘unplug[ged]…from the Internet’ if Congress does not provide new funding for the ACP,” the letter said. “This is not true. As Congress considers the future of taxpayer broadband subsidies, we ask you to correct the hearing record and make public accurate information about the ACP.”

“Reckless spending spree”

The letter criticizes what it calls “the Biden administration’s reckless spending spree” and questions whether the ACP is worth paying for:

It is incumbent on lawmakers to protect taxpayers and make funding decisions based on clear evidence. Unfortunately, your testimony pushes “facts” about the ACP that are deeply misleading and have the potential to exacerbate the fiscal crisis without producing meaningful benefits to the American consumer. We therefore ask you to supplement your testimony from November 30, 2023, with the correct information about the number of Americans that will “lose” broadband if the ACP does not receive additional funds, and correct the hearing record accordingly by January 5, 2024.

During the November 30 hearing, Rep. Yvette Clarke (D-N.Y.) said she will introduce legislation to re-fund the program. The ACP has widespread support from consumer advocates and the telecom industry. Additionally, the governors of 25 US states and Puerto Rico urged Congress to extend the ACP in a November 13 letter.

The Biden administration has requested $6 billion to fund the program through December 2024. Rosenworcel’s office declined to comment on the Republicans’ letter when contacted by Ars today.

Although the FCC operates the discount program, it has to do so within parameters set by Congress. The FCC’s ACP rulemaking noted that the income-eligibility guidelines were determined by Congress.

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SpaceX blasts FCC as it refuses to reinstate Starlink’s $886 million grant

FCC, Policy, spacex starlink / /
A Starlink broadband satellite dish placed outside on the ground.

Enlarge / Starlink satellite dish.

Getty Images | olegda88

SpaceX is furious at the Federal Communications Commission after the agency refused to reinstate an $886 million broadband grant that was tentatively awarded to Starlink during the previous administration.

The FCC announced yesterday that it rejected SpaceX’s appeal. “The FCC followed a careful legal, technical and policy review to determine that this applicant had failed to meet its burden to be entitled to nearly $900 million in universal service funds for almost a decade,” FCC Chairwoman Jessica Rosenworcel said.

In December 2020, shortly before the departure of then-FCC Chairman Ajit Pai, Starlink was tentatively awarded $885.51 million in broadband funding from the Rural Digital Opportunity Fund (RDOF). But the satellite provider still needed FCC approval of a long-form application to receive the money, which is meant to subsidize deployment in areas with little or no high-speed broadband access.

The Rosenworcel FCC rejected the long-form application in August 2022, and SpaceX appealed the decision the next month. The FCC also rejected the long-form application of LTD Broadband, a fixed wireless provider that was originally slated to get $1.3 billion. LTD recently renamed itself “GigFire.”

The Starlink and LTD rejections were the two biggest changes to a $9.2 billion round of grants that, in the Rosenworcel FCC’s words, fueled “complaints that the program was poised to fund broadband to parking lots and well-served urban areas.” The FCC denied LTD’s appeal last week and proposed a fine of $21.7 million for defaulting on grant bids.

SpaceX “disappointed and perplexed”

After yesterday’s Starlink denial, SpaceX quickly filed a response saying the company “is deeply disappointed and perplexed by the Commission’s decision to exclude SpaceX’s Starlink satellite broadband service from the Rural Digital Opportunity Fund.”

“This decision directly undermines the very goal of RDOF: to connect unserved and underserved Americans,” SpaceX told the FCC. “Starlink is demonstrably one of the best options—likely the best option—to accomplish the goals of RDOF. Indeed, Starlink is arguably the only viable option to immediately connect many of the Americans who live and work in the rural and remote areas of the country where high-speed, low-latency Internet has been unreliable, unaffordable, or completely unavailable, the very people RDOF was supposed to connect.”

We asked SpaceX whether it plans to appeal in court and will update this article if we get an answer.

Starlink’s grant was intended to subsidize deployment to 642,925 rural homes and businesses in 35 states. The August 2022 ruling that rejected the grant called Starlink a “nascent LEO [low Earth orbit] satellite technology” with “recognized capacity constraints.” The FCC questioned Starlink’s ability to consistently provide low-latency service with the required download speeds of 100Mbps and upload speeds of 20Mbps.

In rejecting SpaceX’s appeal, yesterday’s FCC order said the agency’s Wireline Competition Bureau “followed Commission guidance and correctly concluded that Starlink is not reasonably capable of offering the required high-speed, low-latency service throughout the areas where it won auction support.”

SpaceX CEO Elon Musk has acknowledged Starlink’s capacity limits several times, saying for example that it will face “a challenge [serving everyone] when we get into the several million user range.”

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