The Wireline Competition Bureau reminded broadband providers that May will be the last month for which they’ll be able to seek reimbursement for the Affordable Connectivity Program (ACP) benefits passed through to ACP households. The ACP is available to low-income customers to cover some of their costs for broadband service.
But without more money from Congress, the ACP will not be able to reimburse providers for the full amount for service and device benefits applied to ACP bills in May and the service will end that month.
To enable companies to plan for May service month offerings and to provide notice to their households regarding that service, the bureau listed an estimated reimbursement range for each benefit type. Non-tribal providers should expect between $7 to $16 per customer for the month of May, according to the FCC.
Through the month of April, the non-tribal benefit will remain at $30. Beginning in June, the FCC will no longer pay ACP benefits. Tribal providers are expected to receive between $18 to $39 per customer for May — a drop from $75 per month.
The estimates presented in the table take into account factors such as open claims for past service months, recent program activity, and claims trends. These are estimated ranges and the final maximum reimbursement amounts announced in April may fall outside this range, according to the bureau.
The law precludes an agency from making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund that’s more than the amount available in the appropriation. Accordingly, the FCC says this estimate is a range “solely to assist providers in preparing for the May service month.” It is not being shared for the purpose of communicating the minimum or maximum possible reimbursement amounts for May 2024.
Providers are not required to pass through any benefits to ACP households after April 2024. They can choose whether to pass on and claim the partial reimbursement for May service. Providers may also, but are not required to, offer a discount larger than the estimated reimbursement rate set by the bureau. “Providers are prohibited from billing ACP households for more than what they would pay had the full ACP benefit been applied to the bill if the household has not opted in to paying a higher amount,” said the FCC.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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