FCC Institutes ACP Transparency Data Collection
The FCC stated that it will lean on the newly mandated broadband nutrition labels.
David B. McGarry
WASHINGTON, November 23, 2022 – The Federal Communications Commission last week adopted an order that mandated annual reporting from all providers participating in the Affordable Connectivity Program, a federal initiative that subsidizes the internet-service and device costs of low-income Americans.
The FCC order establishing the ACP Transparency Data Collection, not released until Wednesday, requires ACP-affiliated providers to disclose prices, subscription rates, and other plan characteristics on yearly basis. The FCC stated that it will lean on the newly mandated broadband nutrition labels, which, it says, will ease regulatory burdens for providers.
The FCC created the Transparency Data Collection pursuant to the statutory requirements of the Infrastructure, Investment and Jobs Act of 2021. The commission adopted a notice of proposed rulemaking in June.
Earlier this year, T-Mobile endorsed the nutrition-label method of collection. Industry associations including IMCOMPAS and the Wireless Internet Service Providers Associations warned the FCC against instituting excessive reporting burdens.
“To find out whether this program is working as Congress intended, we need to know who is participating, and how they are using the benefit,” said Chairwoman Jessica Rosenworcel. “So we’re doing just that. The data we collect will help us know where we are, and where we need to go. We’re also standardizing the way we collect data, and looking for other ways to paint a fuller picture of how many eligible households are participating in the ACP. We want all eligible households to know about this important benefit for affordable internet service.”
Although the ACP is highly touted by the FCC, the White House, and industry experts, there is evidence the fund has been exploited by fraudsters, according to a watchdog. In September, the FCC Office of Inspector General issued a report that found the ACP handed out more than $1 million in improper benefits. In multiple instances, according to the OIG, the information of a qualifying individual was improperly used for hundreds of applications, achieving payouts of hundreds of thousands of dollars.
Last month, Rep. Frank Pallone, D-N.J., contacted 13 leading internet service providers, requesting details on alleged fishy business practices connected to the ACP and its predecessor, the Emergency Broadband Benefit Program.
