Internet prices could soon go up: Here’s why

(NEXSTAR) — Millions of U.S. households have been receiving warnings for weeks that the discounted internet and phone services they’ve received since the coronavirus pandemic will soon end. That end date is fast approaching, and these households will soon have to pay full service fees again.

The Biden administration rolled out the Affordable Connectivity Program (ACP) after receiving $14.2 billion in funding for the effort through the bipartisan Infrastructure Act of 2021. The ACP, operated by the FCC, is available to eligible households (those whose income is less than 200% of the household income). Poverty line, or the poverty line if someone had cheaper internet service than he was receiving government benefits such as SNAP, Medicaid, or WIC.

At launch, ACP partnered with major carriers such as AT&T, Verizon, Spectrum, and T-Mobile to offer eligible households up to $30 per month in discounts on Internet service (on eligible tribal lands). up to $75 for households living in ). Plus, get his one-time discount of up to $100 on the purchase of a laptop, tablet, or desktop computer.

The more than 23 million eligible households currently enrolled in ACP may soon stop receiving that bill credit. Since at least January, these households have been receiving warnings that their ACP will soon start shrinking. The program stopped accepting new registrations in early February.

“The $14.2 billion that Congress originally provided for the ACP is running out,” the FCC said in a fact sheet about the ACP termination. “Due to the lack of additional funding for ACP; [FCC] has announced that April 2024 will be the last month in which ACP households will receive the same full ACP discount as in previous months. ”

Some households may receive partial ACP discounts through May. Straight Talk, a prepaid wireless service owned by Verizon, has already told customers it is “offering special offers through May 31,” according to a message shared with Nexstar.

So what happens when a program runs out of funding?

Essentially, enrolled households will no longer be eligible for discounts on internet or phone service by May (unless the provider has notified customers that the discount will continue).

Some providers, such as Spectrum, are informing some customers that they do not need to take any action and that their service will continue without a credit on their bill after the program ends.

Verizon says customers “will continue with their plans at the ACP subsidy-free price,” but customers who choose not to continue internet-related services may be disconnected, per FCC requirements. . The company told Nexstar it is “committed to connecting homes to reliable home internet” and will continue to offer eligible households home internet discounts of up to $20 per month through Verizon Forward.

In a statement to Nexstar, an AT&T spokesperson said that the company is asking the federal government to find a more permanent solution, but that AT&T “will help customers adjust and take advantage of a variety of flexible plans.” “We are committed to providing options to assist you at all times.” Very valuable” in case you run out of funds. The company already offers access from AT&T for $30 a month, as well as lower-cost plans for mobile broadband service through Cricket Wireless and AT&T Prepaid.

T-Mobile told Nexstar in a statement that it is reaching out to those affected by the end of ACP and will continue to provide “critical internet access to millions of people who lack financial access.” The company said that Metro by T-Mobile customers who currently use ACP, which offers “many affordable options,” will receive that discount through May and 15% on their September bills “to assist with the transition.” I explained that I would receive a dollar discount. T-Mobile also mentioned other free and low-cost plans.

Nexstar also reached out to Spectrum for comment, but did not receive a response in time for publication.

There have been efforts in Congress to provide additional funding to the ACP. In January, Sen. Peter Welch (D-Vermont) introduced the Affordable Connectivity Program Extension Act, which would provide $7 billion to the ACP.

“We cannot afford to let millions of families across the country fall into digital darkness. Congress must save this critical program by proposing the bipartisan Affordable Connectivity Program Extension Act. We have the time. We need action now,” Sen. Welch said in a statement earlier this month.

A companion bill was introduced in the House by Representative Yvette Clark (D-New York) and Representative Brian Fitzpatrick (R-Pennsylvania). Both versions were referred to their respective appropriations committees in January.

However, Rep. Mark Molinaro (R-N.Y.) and Rep. Joe Courtney (D-Conn.) who spoke with Nexstar in February said they believed Congress would not allow the ACP to end.

“If that happens, it’s true that a lot of people won’t have access to the internet, and that’s a bad thing,” Courtney said at the time.