After the federal Internet waiver program ended in May, lawmakers and advocates in Los Angeles are looking for ways to keep people online. ISP Pledges Low-Cost Plans in CA by 2024
At the time, most internet service providers said they would continue to offer low-cost plans ranging from $20 to $30 to eligible residents through 2024. But after that, there is no obligation.
That means millions of low-income people will see higher bills in the new year, potentially forcing some of them to abandon the service altogether.
Nearly 3 million California households rely on the federal Affordable Connectivity Program to help pay for high-speed Wi-Fi. The $14.2 billion pandemic-era program offered a monthly rebate of $30 for eligible residents and up to $75 for those living on tribal lands. The money ran out in the spring after Congress failed to renew funding.
State lawmakers require Internet companies to guarantee offers that reflect the ACP — $30 per month for 100/20 Mbps speeds — for at least five years.
They argue that large telecommunications giants have a duty to taxpayers to reduce costs for low-income people as those companies receive subsidies and public projects such as the billion-dollar Broadband for All program to expand internet across the country.
ISP Pledges Low-Cost Plans in CA by 2024-Lawmakers reach out
In May, just days before the federal rebate program was to end, Democratic state Sen. Maria Elena Durazo and 13 other lawmakers wrote to the seven largest Internet Service Providers serving California to express their concerns.
He asked executives from Spectrum, Verizon, Frontier, and other companies to work with the state to provide Internet access to 90% of low-income households.
But AT&T was the only company to respond. MLAs are basically ghosts.
After LAist reached out to the sellers for comment, it wasn’t until Thursday that Durazzo finally heard from them.
US Telecom, an advocacy group that represents some of these companies, wrote to lawmakers on its behalf, saying its members are “committed” to providing convenient options to consumers.
He said the ISP has encouraged its customers and employees to “get involved in Congress and contact their representatives” to press for further ACP funding.
However, the group did not respond to lawmakers’ request for a five-year commitment or comment on whether prices would rise in 2025.
Durazzo said she was “saddened and disappointed” that most sellers did not acknowledge the letter sooner.
“Whatever differences we have, we can resolve them,” Durazzo said. “Okay, tell me where you are… and we’ll go from there.”
Lawmakers had asked companies to:
- Maintaining and expanding low-cost Internet service over the next five years for families eligible for programs such as Medi-Cal and CalFresh
- Offers broadband plans at just $30 per month with minimum speeds of 100/20 Mbps
- Increase advertising by investing $10 million annually in community and ethnic media
- Provide a toll-free number and multilingual call center to assist with registration
- Inform new members about available digital literacy resources and tools
- Work with state politicians to reform AKP
- Report annual progress on connectivity to the California Broadband Council
Laist received responses from several companies after being contacted earlier this week.
In a statement, AT&T said it is working with customers who sign up for ACP to find the solution “that’s right for them” and that the company is already offering the $30 plan to qualified customers. Still working.
A Verizon spokesperson said the company is committed to keeping people connected and that eligible customers can get plans starting at $20 per month.
A T-Mobile spokesperson said there are cheaper options for those taking advantage of ACP.
However, neither company has commented on when these ads will be available.
Tackling affordability
While ACP’s future in Congress remains uncertain, local legislators are moving forward with their own plans to engage low-income residents across the state.
Congresswoman Lori Wilson is sponsoring a bill that would expand the state’s Lifeline phone program to include broadband as a covered service. It allows eligible residents to apply the $19 discount to their Internet bill instead of their phone service.
Mr Durazzo has sponsored legislation to compel bailing in California as a state senator. The two ‘‘state broadband-related funds’’ –companies seeking to benefit from the funding have to provide services with basic rates which should not be higher than $30 per month to the qualified consumers.
Each of these draft laws has until August 15 to be withdrawn from the committee. They also must pass the Senate and House of Assembly before the legislature adjourns at the end of the month.
Lobbyists representing Internet service providers once again opposed the bill, emphasizing existing low-cost offerings.
“Companies will have one excuse after another,” said Sun Wright-McPeek, president and CEO of the California Technology Development Fund. “They don’t have the power to work on a solution.”
She estimates that private companies collected about $1.7 billion from the federal government to connect California families during the ACP period, “plus whatever they sold,” and more revenue if providers sat down and talked to us.
“And we will, in the public interest, assist eligible families by continuing this ongoing commitment if they accept the eligibility pool,” Wright-McPeek said.
A difficult decision
A recent study found that only 33% of those eligible for ACP knew the program existed. Nevertheless, the state was able to enroll more than 50 percent of eligible families, which was one million more than any other state.
After the program ended, many residents had to choose between maintaining service or paying for additional household needs.
State senator. Durazzo said low-income communities will face “difficult decisions” after the New Year when Internet Service Provider cut prices. He said the state should not require companies to offer low-cost, long-term plans – they could choose to do so themselves
.“And they have to move forward,” Durazzo said.