In 2020, New York City officials unveiled a massive new broadband proposal they promised would dramatically reshape affordable broadband access in the city.

Instead, the program has been steadily and quietly dismantled, replaced by a variety of costly half-measures that critics say don’t solve the actual, underlying cause of expensive, substandard broadband.

The New York City Internet Master Plan was ambitious. The plan featured a pilot program designed to bring affordable broadband to 45,000 residents of New York City Housing Authority (NYCHA) buildings, a major streamlining of broadband deployment bureaucracy, and several initiatives prioritizing subscriber privacy and choice.

At the heart of the proposal was a plan to spend $156 million to create citywide fiber and wireless open access networks in underserved portions of the city that would be open to all competitors. The plan specifically targeted the most underserved parts of the city, given officials estimated it would cost $2.1 billion to deploy such a network city wide. 

“The private market has failed to deliver the [I]nternet in a way that works for all New Yorkers,” the plan said, pointing out that 29 percent of city households lacked broadband, and 46 percent of families living below the poverty line lacked service due to high prices.

City officials predicted that their plan to boost competition would create 165,000 new jobs, result in a $49 billion increase in personal income, and create up to $142 billion in incremental gross city product by 2045 – all while delivering faster, more affordable broadband to 1.5 million city residents currently without access.

But elections have consequences.

In June of 2022, new New York City Mayor Eric Adams announced that the city would be “pausing” the entire initiative for “re-evaluation.” Insiders familiar with the decision making process say the pause was more of an abrupt cancellation, leaving planners and network built partners high and dry after several years of careful preparation and planning. 

On January 1st, 2022, the Federal Communications Commission launched the Affordable Connectivity Program (ACP) with $14.2 billion in funding designed to help American households pay for the monthly cost of their Internet subscription. In May, we published a story about the fate of the program, based on a prediction model we built that was intended to visualize how long we might expect the $14.2 billion fund to last before needing new Congressional appropriations to sustain it. Back then, the data showed that the fund would run out some time in 2024.

We’re back today not only with a new and improved model (based both on more granular geographic data and fed by an additional 16 weeks of enrollment data), but a new dashboard that pulls together a host of information from the Universal Service Administrative Company on where and how the Affordable Connectivity Program money is being spent. 

A New Resource for Broadband Advocates, Local Policy Makers, and Elected Officials

Located at ACPdashboard.com, this new resource from ILSR includes information local broadband advocates, nonprofits, state legislators, and policy makers need to know about where enrollment efforts and expended funds stand today. It includes a breakdown by state for how enrollment numbers stand (as well as an estimate for the amount spent in each state so far), the current national eligible enrollment rate, information for 30 metropolitan areas, how much is being spent on service support versus devices, how many households are using the ACP for mobile versus wireline service, and the total left in the ACP fund. Our new prediction model shows that a little more than $410 million is leaving the bank account every month. 

On January 1st, 2022, the Federal Communications Commission launched the Affordable Connectivity Program (ACP) with $14.2 billion in funding designed to help American households pay for the monthly cost of their Internet subscription. In May, we published a story about the fate of the program, based on a prediction model we built that was intended to visualize how long we might expect the $14.2 billion fund to last before needing new Congressional appropriations to sustain it. Back then, the data showed that the fund would run out some time in 2024.

We’re back today not only with a new and improved model (based both on more granular geographic data and fed by an additional 16 weeks of enrollment data), but a new dashboard that pulls together a host of information from the Universal Service Administrative Company on where and how the Affordable Connectivity Program money is being spent. 

A New Resource for Broadband Advocates, Local Policy Makers, and Elected Officials

Located at ACPdashboard.com, this new resource from ILSR includes information local broadband advocates, nonprofits, state legislators, and policy makers need to know about where enrollment efforts and expended funds stand today. It includes a breakdown by state for how enrollment numbers stand (as well as an estimate for the amount spent in each state so far), the current national eligible enrollment rate, information for 30 metropolitan areas, how much is being spent on service support versus devices, how many households are using the ACP for mobile versus wireline service, and the total left in the ACP fund. Our new prediction model shows that a little more than $410 million is leaving the bank account every month. 

For more than a year and a half, the nation’s top telecommunications regulator has been stuck in limbo, thanks to a combination of federal dysfunction and industry lobbying. Now the nomination of popular reformer Gigi Sohn to the FCC is facing a full frontal assault by telecom monopolies dedicated to preventing the agency from standing up to monopoly power.

After an inexplicable nine-month delay, President Biden nominated consumer advocate Gigi Sohn to the FCC late last year. Sohn, Co-Founder and CEO of consumer group Public Knowledge and a former advisor to FCC Chairman Tom Wheeler, is well versed in media and telecom policy, and broadly popular across both sides of the aisle. 

Yet since her belated nomination, Sohn has been met with a bevy of telecom, media-industry, and politically constructed allegations designed to derail her nomination, ranging from false claims that she’d harm rural America, manufactured allegations that she hates police, and false assertions that she’s looking to censor conservative voices in media. 

All of these efforts serve one function: to ensure the nation’s top telecommunications regulator remains mired in partisan gridlock and a 2-2 commissioner voting split. Without a clear voting majority, the agency can’t embrace reforms that are widely popular with the public, whether that’s restoring the FCC’s consumer protection authority, or restoring recently-discarded media consolidation rules.

It’s been nine months since we launched our Big List of American Rescue Plan Act (ARPA) Community Broadband Projects, tracking what communities are doing with the various pots of federal money intended to go towards solving local broadband challenges. Since then, we’ve recorded 250 community projects and 27 states which have announced significant broadband grant programs or disbursement for new infrastructure projects. Here we highlight some of the community projects we’re really excited about, including those that have decided to build their own networks and those building on existing projects, as well as those using ARPA dollars for open access networks, affordable connectivity, or Internet access for students. We also discuss some examples of solutions we believe are less permanent, forward-thinking, or likely to result in long-term success, including the distribution of hotspots and the allocation of funds to monopoly providers. 

What We’re Excited About: Community-Owned Networks and Open Access  

Fortunately, we’re seeing a number of communities approve plans to spend their Rescue Plan dollars on building their own municipal networks. In Lexington, Tennessee (population 8,000), the city is collaborating with Lexington Electric to bring broadband to the community. An ARPA grant is expected to cover about $20 million of the total $50 million price tag, and the city will issue bonds for the rest. If this grant is received, Henderson County (28,000) – where Lexington is located – has agreed to a 10 percent match (from $300,000 to $500,000). 

On Monday last week, the White House made much ado of an announcement that it had secured commitments from a collection of large Internet Service Providers (ISPs) to adjust speed tiers and monthly costs for their existing plans so as to be able to offer a $30/month, minimum 100 megabit per second (Mbps) download offering for low-income households across the country. The goal was to create plans for households that qualify for the $14.2 billion Affordable Connectivity Program (ACP) to get access to faster connections while ensuring no additional out-of-pocket costs. The recent White House announcement said that the 20 private-sector providers that have joined together cover 80 percent of households (skewed towards urban areas).

There’s no argument that the move will directly benefit hundreds of thousands of households by boosting their wireline connections and reducing their monthly expenses. And yet, it’s a treatment of the symptom rather than the disease, as the administration continues to refuse to address the larger structural dynamics that have made Internet access increasingly expensive in this country and perpetuated a broken marketplace via poor regulation and a lack of strong leadership.

This will become immediately apparent the moment that the Affordable Connectivity Program runs out of money, and those households suddenly face higher costs with no option for recourse. Our analysis shows that even if only a third of eligible households ultimately enroll (ten percent more households than are enrolled today), absent an additional allocation, the fund will be exhausted by the beginning of November 2024. But even under the best-case scenario, with the benefit reaching as many people as possible, current enrollment rates show that only 68 percent of eligible households will be able to sign up before the funds run out. In this model, the money will be exhausted just 18 months from now, on January 1st, 2024.

A Necessary Benefit, But There Are Enrollment Disparities

Join us live on Thursday, December 16th at 5pm ET for Episode 28 of the Connect This! Show, where co-hosts Christopher and Travis Carter (USI Fiber) will be joined by returning guests Doug Dawson (CCG Consulting) and Kim McKinley (UTOPIA Fiber) to catch up on the news of the week and check in on a number of issues.

The panel will discuss, among other things, the transition from the Emergency Broadband Benefit to the Affordable Connectivity Program, restrictive access and exclusive wiring agreements in apartment buildings, and where the NTIA is on administering the more than $42 billion in new broadband infrastructure.

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