Low-income homes drop Internet service after Congress kills discount program

The termination of the Affordable Connectivity Program (ACP) in the U.S. has led to a significant drop in Internet service subscriptions among low-income households. Charter Communications reported a loss of 154,000 Internet subscribers in the second quarter of 2024, primarily attributed to customers canceling their service after the $30 monthly discount ended in May. Approximately 100,000 of these subscribers had been receiving the discount, which sometimes made their Internet service free. The Biden administration had sought $6 billion to continue funding the ACP, but Congress did not allocate additional resources, with Republican lawmakers criticizing the program for benefiting households that already had broadband access.

The Federal Communications Commission (FCC) had warned that the discontinuation of the discounts would likely lead to reduced Internet access, as a survey indicated that 77% of participating households would either change their plan or drop service entirely once the subsidies expired. Charter's earnings report highlighted that the loss of subscribers was a stark contrast to the previous year, where they had gained 70,000 customers. Although Charter has made retention offers to former ACP recipients, the company's CEO expressed concern about the long-term ability of low-income customers to pay for Internet service without new subsidies. Additionally, the FCC's Lifeline program, which provides further discounts, is also facing uncertainty due to a recent court ruling questioning the constitutionality of the Universal Service Fund.