Since 2021, Plum has helped many MVNOs launch their Affordable Connectivity Program (ACP), providing wireless to low-income households. However, on February 7, 2024, ACP providers stopped accepting new applications and enrollments. According to the FCC, “the $14.2 billion Congress initially made available for the ACP is running out.” In this article, we’ll explore what happened to the ACP and what its wind-down means for providers.
What Was the Affordable Connectivity Program?
The Affordable Connectivity Program was an FCC benefit program that provided low-income households with broadband for work, school, healthcare and more. The benefit provided a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households on qualifying Tribal lands. The program also provided a one-time discount of up to $100 towards purchasing a laptop, desktop computer or tablet from participating providers.
To qualify, the ACP Fact Sheet states a household is eligible if a member of the household has income that is at or below 200% of the Federal Poverty Guidelines, or a household member mets at least one of the ACP household criteria. As of January 24, 2024, The FCC Wind-Down Fact Sheet shares that “over 23 million” households were currently eligible.
What is the Expected Impact of the End of ACP?
The last fully funded month of the ACP was in April 2024. According to the Benson Strategy Group, “The loss of the ACP will disproportionately affect some demographics. 41% of ACP participants are in the South and 49% are military families; 95% of participants say the end of the program will cause financial difficulties.” You can read their full study here.
Additionally, the National Lifeline Association (NaLA), a non-profit trade group focused on Lifeline telecommunications, responded to the ACP shutdown, “for an estimated 72 million Americans who depend[ed] on the Affordable Connectivity Program (ACP), today is a day of frustration and worry.”
What Does This Mean for ACP Providers?
Although the ACP has ended, the FCC is still committed to empowering Americans to choose the wireless plan that best meets their needs, either with their current provider or a new one. TheLifelineprogram for phone or internet service is still available to eligible low-income consumers in every state, territory and commonwealth, as well as Tribal lands. Plum is not currently involved in the Lifeline program.
How Plum Can Help
Our ACP partners are positioned to keep households connected. Plum’s range of wholesale programs helps current ACP providers transition into offering their own pre-paid wireless plans for cellular or tablet use. Contact Plum to learn how we can help you become your own MVNO or expand your existing wireless offerings on the T-Mobile Network. For up-to-date news and information on ACP, please visit the FCC website.
Plum adds value to your wireless program with our competitive pricing and industry knowledge that many successful MVNOs leverage.
Contact PlumReferences:
- ACP Has Ended for Now. Available from: www.fcc.gov/acp
- Affordable Connectivity Program Fact Sheet. Available from: https://www.fcc.gov/sites/default/files/acp_fact_sheet_3_final.pdf
- Affordable Connectivity Program Wind-Down Fact Sheet. Available from: https://www.fcc.gov/sites/default/files/ACP_Wind-down_Fact_Sheet_2024.pdf
- NaLA Statement on Appropriations Package Passed to Avoid A Government Shutdown. Available from: https://nalalifeline.org/blog/nala-statement-on-appropriations-package-passed-to-avoid-a-government-shutdown/
- The Impact and Importance of the Affordable Connectivity Program. Available from: https://www.bsgco.com/acp-fact-sheet
- The Lifeline Program of the Universal Service Fund. Available from: https://www.usac.org/lifeline/
- U.S. Federal Poverty Guidelines. Available from: https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines