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The Internet Government The Almighty Buck

Low-Income Homes Drop Internet Service After Congress Kills Discount Program (arstechnica.com) 240

An anonymous reader quotes a report from Ars Technica: The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. On Friday, Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount. About 100,000 of those subscribers were reportedly getting the discount, which in some cases made Internet service free to the consumer. The $30 monthly broadband discounts provided by the ACP ended in May after Congress failed to allocate more funding. The Biden administration requested (PDF) $6 billion to fund the ACP through December 2024, but Republicans called the program "wasteful."

Republican lawmakers' main complaint was that most of the ACP money went to households that already had broadband before the subsidy was created. FCC Chairwoman Jessica Rosenworcel warned that killing the discounts would reduce Internet access, saying (PDF) an FCC survey found that 77 percent of participating households would change their plan or drop Internet service entirely once the discounts expired. Charter's Q2 2024 earnings report provides some of the first evidence of users dropping Internet service after losing the discount. "Second quarter residential Internet customers decreased by 154,000, largely driven by the end of the FCC's Affordable Connectivity Program subsidies in the second quarter, compared to an increase of 70,000 during the second quarter of 2023," Charter said.

Across all ISPs, there were 23 million US households enrolled in the ACP. Research released in January 2024 found that Charter was serving over 4 million ACP recipients and that up to 300,000 of those Charter customers would be "at risk" of dropping Internet service if the discounts expired. Given that ACP recipients must meet low-income eligibility requirements, losing the discounts could put a strain on their overall finances even if they choose to keep paying for Internet service. [...] Light Reading reported that Charter attributed about 100,000 of the 154,000 customer losses to the ACP shutdown. Charter said it retained most of its ACP subscribers so far, but that low-income households might not be able to continue paying for Internet service without a new subsidy for much longer.

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Low-Income Homes Drop Internet Service After Congress Kills Discount Program

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  • by superdave80 ( 1226592 ) on Tuesday July 30, 2024 @12:02AM (#64665802)
    Not only did my mother-in-law- lose her $30 subsidy, they TACKED ON an extra $10 a month after the ACP ended.
    • by dbialac ( 320955 )
      Novel idea: how about the internet providers be shamed into offering a low-cost service plan. Getting things done frequently does not require government to step in. I live in an area where one of the high schools still hasn't integrated. It's not that the opportunity isn't there, kids can select the high school they want to go to. Non-white students generally just don't want to go there. Talking with a local politician who wanted to change that, he was proposing regulations to force the change, but there we
      • Whenever there is a natural monopoly of a critical service, and the established player is more interested in protecting that monopoly than providing decent service... that's time to nationalize it.

        Even if it's just government management doling out contracts, you can keep it fairly lean and competitive. Free market's great until someone has an unbeatable advantage, then regulation is the only way to keep it within reasonable bounds.

  • by 93 Escort Wagon ( 326346 ) on Tuesday July 30, 2024 @12:12AM (#64665808)

    After all, just about all food stamp recipients were already eating food before joining that program. Talk about wasteful...

    • by Dusanyu ( 675778 )
      The repblicans I know do not complain about food stamps and feel the program is nessasary to help the poor. They do however have issues with what is allowed to be bought with them for eample it is a resonable question Why is candy somthing you can buy with EBT? and feel that food stamps should be limited to ingredients for cooking meals.
  • by ctilsie242 ( 4841247 ) on Tuesday July 30, 2024 @12:22AM (#64665818)

    If one is a farmer, you know:

    * If you don't feed your animals, they start dying, and you won't get much at market.

    * If you let them get really sick and it is contagious, your other animals get sick, and you won't make much at the market.

    * If you let a rabid animal tear through your herd/flock, you won't have much at market.

    * If you allow predators at your flock, you won't have much to sell.

    * If you don't take care of sick or lame animals, you lose stuff in the market.

    This also applies to governments. You don't take care of the people, they become disaffected, and opportunistic "diseases" start happening like extremism. It doesn't take much effort to keep things going, and provide basic food, Internet and other items to the population. Not doing so means that in 20 years, you now have to deal with constant insurgencies which can be impossible to put out, or just consume the country entirely.

    • by Mr. Dollar Ton ( 5495648 ) on Tuesday July 30, 2024 @12:35AM (#64665842)

      Aw, come on, this is all fake news. The government should be really small, just big enough to give pork to me and my friends, everyone else could very well bootstrap and work harder. No fish for you, I'll just give you a free lecture how to get one from the sea if you live inland.

    • People aren't animals, and this isn't Animal Farm.

      • by Calydor ( 739835 )

        Tell me you don't understand analogies without saying you don't understand analogies.

        Also tell me you don't understand that humans are just another species of mammal on this planet ...

        • Tell me you don't understand analogies without saying you don't understand analogies.

          Also tell me you don't understand that humans are just another species of mammal on this planet ...

          They're probably part of the same group who thinks the opening ceremony at the Olympics were a stick in the eye of Christians [imgur.com].

      • by orlanz ( 882574 )

        I don't know if you are uber educated and this was some tongue in cheek. But if you don't actually know what Animal Farm is, the GP is talking about how we don't want to walk down the path that leads to the end of that book. Like that's the perfect book to apply here: get rid of your caretaker and "boot strap" yourselves... leads to being worse off as someone gets in power and leeches off the rest.

      • You are correct. That's why what the OP posted is known as an "analogy".

        Your understanding of how to read the english language is ... well here's a car analogy: You'd be like a Reliant Robin.

    • Re: (Score:3, Insightful)

      by gweihir ( 88907 )

      Republicans think the poor should suffer because they are poor and obviously they must deserve being poor because they are. That is essentially virtue signalling and sadism and not rational at all.

      • I believe the correct term is Prosperity Gospel. It's an unfortunate result that you sometimes get with monotheism. If you have an all-powerful God, then everything that happens must be because God wants those things to happen. So if someone is poor, that's what God wants, and we have no right to question God.

        That's why the Jewish and Christian bibles are so emphatic about helping the poor, to prevent exactly the problems that we see now.
        • by gweihir ( 88907 )

          Funny how some some groups of religious followers do not even know their holy book. My point is that "Prosperity Gospel" is a result of virtue signalling and sadism, thinly veiled as a (faulty) interpretation of their religion. You do find the same disdain for the poor in non-religious people as well.

    • by jmccue ( 834797 )

      This also applies to governments. You don't take care of the people, they become disaffected, and opportunistic "diseases" start happening like extremism.

      True, but how about forcing Comcast (Xfinity), Charter and all to lower their prices. Broadband in the US has been subsidized for decades, and in many cases all they did was buy back stocks. Time to say, you price will be cut by 30% until the subsidizes are paid back to the tax payer. Prices can only be raised and the official inflation rate minus 1%.

    • by rsilvergun ( 571051 ) on Tuesday July 30, 2024 @08:22AM (#64666520)
      Want respect. But they aren't capable of doing much of anything to get it. They're not especially smart or especially good at sports or frankly especially good at anything. It's especially bad for them as they age because age takes its toll and they're already mediocre or slightly below average abilities become more obvious. Worse as they age their kids become more capable and they become less capable so that the inherent respect they got from their kids for being adults starts to fade too.

      For those people and make a devils bargain sometimes.

      They demand a lower caste or class be maintained. Someone who has to show them respect no matter what. Someone who they're walking down the street has to step aside from them. That sort of thing. If you ever wondered why somebody who didn't own slaves would fight in the American civil war that's why. And I don't mean that is some abstract thing we literally have writings where they more or less talk about it.

      This is kind of the essence of the right wing. You have a hierarchy and there's somebody above you and if they say jump you have to say how high on the way up but in exchange for that people beneath you have to do the same.

      There are military manuals about this. They were written to talk about how to determine when the people at the bottom are numerous enough that you can use them to destabilize a country. It's around 10%. Which is right about where the black population in America is. So you maintain an under class around that percentage and you're going to get a certain percentage to the population that will basically allow you to do anything to them so long as they're not at the bottom.

      LBJ said it best. Convince the man that he's better than any black man and he'll let you pick its pocket. Other countries do it too they just don't usually use skin color. But it's the same trick
    • Nice. An actual +10 Insightful. Your position is my position.

    • If you think of citizens as farm animals to be fattened for the slaughter, and government as the farmer, that of course makes perfect sense.

      If you think of citizens as independent people, capable of taking care of themselves, of making their own decisions, and government as a referee who ensures people play by the rules, it doesn't.

  • by ghoul ( 157158 )
    In the time since this program was created, 5G has rolled out and people just use their cellphones (for which there is a separate govt subsidy program). Most people had not cancelled their unused broadband internet due to inertia. As long as its free why bother but now that its not , people are cancelling.

    Effectively this was free money for the ISPs as these people were not consuming bandwidth but the govt was paying the ISPs for said bandwidth. I am surprised Republicans - the party of big business went
    • Yup. Add this cash to all the money they get for buildouts that never happen . . .

    • Yes, most of the wireless carriers offer a home internet service. I have TMobile's version, it's fine. Wired internet isn't needed anymore.
      • by Bert64 ( 520050 )

        If you live in an area with even moderate population density and everyone there decided to move from their dedicated wired services to the shared pool of wireless spectrum the service would be massively overloaded and completely unusable.
        Wireless only works when there aren't many users in a given area.

    • In the time since this program was created, 5G has rolled out and people just use their cellphones

      Not everyone in this world has their world revolve around their smart phone.

      One LARGE subsection of people that fit into this....are the elderly, or older citizens in the US.

      Many depend on internet connections that their tablets connect to....and maybe their televisions stream from, home alarm systems....?

      And while I don't consider myself elderly...and don't qualify for this (yet) if it ever comes back...I

  • What Democrats do when they don't really care about a program and know that Republicans will roll it back.

    If Democrat Congresscritters ever legalize abortion, it will surely be means-tested, too.

    • If Democrat Congresscritters ever legalize abortion, it will surely be means-tested, too.

      Yes, they'll make sure only pregnant women will be able to get one.

      • Re: (Score:3, Funny)

        by cayenne8 ( 626475 )

        If Democrat Congresscritters ever legalize abortion, it will surely be means-tested, too.

        Yes, they'll make sure only pregnant women will be able to get one.

        Err...I dunno.

        I mean, to do that, they'd first have to be able to define what a "woman" is and that capability seems to elude them these days.

  • The government should be regulating the price, not subsidizing it with our tax money.

    • So, you think the government should simply save "your tax" money on a secret account, instead using it for something sensible and reasonable?

      So why pay taxes? For what actually do you, or would you pay taxes?

      Why do you even have a government? Seems you do not need one.

  • This should make them much more intelligent.

  • I live in Europe and my home internet and TV cost prices â22. Your subsidies are distorting your market.
    • Depends on where in Europe. In most of Europe, fast internet has at least been acknowledged to be a basic utility to which people have a right, even though there still are lots of places – even in the rich parts of the EU – where it is difficult to get.

    • by Calydor ( 739835 )

      You must live in a very cheap area. Germany here. 200 mbit fiber, no TV package included, just shy of 40 euros a month.

    • I also live in Europe and my internet costs £70 p/m

  • basiic internet (Score:2, Insightful)

    by ClueHammer ( 6261830 )
    Basic internet should be free for all, same with basic power and basic food, but then there is reality and it sucks!
    • I mean, it would be great if a lot of things were free, but as it has been said by one wiser than myself, there ain't no such thing as a free lunch.

      I haven't yet seen anyone who complains that healthcare, internet or whatever else should be free volunteering to work in those services without compensation.

    • Basic internet should be free for all, same with basic power and basic food, but then there is reality and it sucks!

      Ummmm, no single "thing" should be free. Free things builds disease. Access should be simple and unfettered, but not entirely free as providing a service is not free.

      Economics MUST be based in Reality or everything eventually spins out of control. Yes, Reality can suck quite badly sometimes. Deal with it and stop making it my problem.

  • How about we increase competition instead? Lower prices and better service would do wonders for everyone, plus it would save a lot on subsidies if we still want to do that.

    • The capital expenditure to enter the market at all will continue to limit new competitors. The compromises enforced on the telecoms since the breakup of AT&T's telephone service monopoly has lowered service quality considerably, though it has permitted competition with some very odd compromises of forcing providers to carry each other's traffic at federally regulated rates.

      • The capital expenditure to enter the market at all will continue to limit new competitors.

        That is not the primary limiting factor. Even competitors who could afford to enter regional markets are prohibited from doing so by right-of-way agreements which are exclusive. All such agreements should be illegal.

    • by orlanz ( 882574 )

      It should be a combination of. Open up the highways to many. Let the carriers be no different than UPS or FedEx. And let the ISPs be a separate business.

      However, this would not be enough for many people, they would still need subsidies. How you subsidize is another matter. We can open up more community centers that provide many services to the community and include high speed internet. We can consider this a basic necessity and use food stamps. Etc etc.

      But a sub is always needed and we need to remove

    • 10 Million people were using this and 100000 dropped out without the subsidy so (10 million/.1 million =1/100) 1% drop out. So this is pretty much essential. If you remove a subsidy on something and 99% of the people keep using it, its an essential service. You can debate whether you want to subsidize access to essential services but for comparison only 60% of the people vote. Internet is more important than democracy to people.
  • by dlarge6510 ( 10394451 ) on Tuesday July 30, 2024 @03:55AM (#64666094)

    Most people drop landlines and use mobiles.

    The poor more so.

    In the UK we discovered how many poor households had no landline internet and tghe whole family shared one mobile, mums mobile.

    We found that during COVID lockdowns as we told the kids to study from home only to find a large portion who had no device or relied on expensive mobile data that would simply run out after a week and they wait for mum to top up the mobile next month.

    My own cousin for example. The house still has a landline physically connected but due to the monthly costs of broadband over it she failed to meet payment deadlines and disconnected it while bringing in the debt collection agencies. Owed over a grand (£1000) and due to also having owed more than a grand on her also disconnected mobile and also owing the bank £1500 in loan repayments for a loan she had in 2014 there was no way with her income that the internet was a priority.

    To make sure she could have some connectivity, could call in an emergency etc I gave her a PAYG SIM that I topped up monthly with £25 giving 80GB of data at full speed and then unliomited data at ADSL speeds after that. She consumed the 80GB within a week usually, watching streamed TV. The low speed unlimited data was enough for whatsapp and other low bandwidth usage and if she stayed awake, after 12AM she got full speed again till 7am.

    An old mate of mine, lives in a flat. She ditched TV so she could avoid the cost of the TV license and she ditched the landline, she and her sister never bothered with broadband, they see it as old and odd :D They just use the mobiles.

    So many do that and put up with the crappy mobile signals.

    BUt thats where they, including the poor, put the money. Not in a landline with 200Mb or more or even less, and no caps, but in a smart phone they can carry about and flash about like its a fasion accessory. Then into the expensive PAYG data or expensive contracts, plust the expensive streaming.

    Me as a frugal bastard however has a mobile that was released in 2018 as my "latest upgrade". It uses a PAYG SIM and I own the mobile outright, in fact it was a FREE aquistion from where I work in IT as we were scrapping them. I pay £6 a month on that SIM for 1GB of data which is all thats needed for a month of whatsapp, wikipedia, reddit and a few other bits.

    My home has a landline providing both voice and data. The broadband is 200Mb down and the costs has recently increased so I shall me talking to the retentions dept.

  • ...watching people respond exactly as desired to propaganda, all the while thinking that they are the brainy rebels, lol.

    First of all, what your poor neighbors do with their internet, on average, is watch vapid Tiktok stuff, not learn to code, learn second languages, etc. (Not much different from what most of your non-poor neighbors do with it either, but still true.)

    Secondly, those new rims they just got, or, depending on where you live, what they just paid to jack that pickup chassis way up into the air

  • by JoeRobe ( 207552 ) on Tuesday July 30, 2024 @06:26AM (#64666256) Homepage

    Shouldn't this read "Low-Income Homes Drop *Charter* Internet Service..."? Does Charter (or anyone else) know that those people lack internet service now? Or did they move to a different provider? Or did they choose to use cellular?

  • by bradley13 ( 1118935 ) on Tuesday July 30, 2024 @07:19AM (#64666372) Homepage

    Related: didn't the US recently spend $42 billion to provide internet access, without actually connecting anyone to the Internet? $42 billion would pay an awful lot of internet bills.

    Whatever contracts were issued under that program need audited by the GAO. There should have been performance and penalty clauses. If there were not, then certain politicians and bureaucrats need prosecuted for fraud.

  • I think it's funny (Score:5, Insightful)

    by argStyopa ( 232550 ) on Tuesday July 30, 2024 @07:23AM (#64666388) Journal

    ...that so many people here reflexively support/defend what is, after all, a fat subsidy to isp companies.

    Think about that.

    If we want poor people to have broadband, that's fine: make it conditional for isp licensure that they have to provide to verified individuals internet connects at a minimum speed for low or no-cost (we all know that aside from the install, there's basically no cost to running internet access)?

    Why are we insisting that the government hand isp's money?

  • I wonder how many of those with loss of subsidized internet have smart phones with internet on the phone. I'm under the impression that a lot of the "poor" have fancy cell phones and would rather lose lots of things before they lose their phone. Just a guess, but this program being dropped seems like it's probably redundant for many if not all of the recipients. I know lots of people that only use the internet to watch streaming services and get their news on their phone...on facebook!

  • Cutting people off from free access to information and knowledge is on page one of the fascist authoritarian playbook because people who are educated and informed are harder to control and less likely to believe the lies they are told.
  • Tattoos are a higher priority than home internet.

  • Who could honestly think this is a wasteful program? Giving people access to information is not wasteful, what's wasteful is to overpay public servants who serve the people. Before slashing the ACP, why don't all government employees making above $68 000, the average, cut their salaries to $68 000? Use the additional money to fund the ACP, that would be much more useful.

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