KAC Expiration Won't Mean Immediate Rollback of Leniency
The end of the FCC's Keep Americans Connected (KAC) pledge -- which was to have expired Tuesday -- won't necessarily mean a universal end of ISPs offering a safety net of modified broadband subscriber terms during the pandemic, companies and consumer advocates told us. They expect a patchwork response of a rollback of some terms and more emphasis on setting up payment plans. Resumption of data caps is expected, as reported in a previous installment in this series of stories about the novel coronavirus (see 2006180002).
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KAC "has been a success," the FCC emailed. It said it's "pleased" providers representing a majority of broadband subscribers committed to offering extended payment plans and deferred payment arrangements after Chairman Ajit Pai urged they avoid disconnecting customers even after the plan's end (see 2006190027).
June 30 "is not a really big date" affecting everyone who had been receiving some benefit from KAC because companies won't be taking universal, uniform steps after its expiration, said Angela Siefer, National Digital Inclusion Alliance executive director. She said KAC was one part of a broader patchwork of connectivity-related hardship programs, and while appreciated, "it wasn't a huge thing for all households." Also of importance is the Coronavirus Aid, Relief and Economic Security Act money and school funding that has been covering the cost of Wi-Fi hot spots, but that funding will run out and schools are unlikely to be able to keep them going on their own, she said.
Rather than continuing all the same terms or quietly rescinding them, a lot of IPSs are likely somewhere in between, with some offering specialized terms and conditions though others get dropped, said Dana Floberg, Free Press policy manager. She said even under KAC, there was confusion and people being disconnected who seemingly qualify. The initiative is voluntary and somewhat vague, and ending it "is not going to make that any better," especially since ISPs that might have felt pressured by the pledge's existence now have an out from offering anything, she said. She said the FCC's having shed the regulatory authority it had over ISPs' behavior with its Communications Act Title II rollback points to the need for a national moratorium on utility shutoffs, including broadband. The commitment should be extended, she said: "It's a small thing, but it's something."
Post June 30 won't be much different, with significant changes by small cable ISPs unlikely, said ACA Connects President Matt Polka. "We all know we are not out of the woods on this." KAC was an appropriate route for encouraging companies to extend a connectivity safety net, "which our members would do anyway," he said. He said many providers likely will offer modified KAC terms with a particular focus on not disconnecting customers. He said there might be some effort at chipping away at "an enormous mountain of bad debt" through payment plans. "Our members aren't going to go out and start disconnecting customers right and left," Polka said.
NCTA emailed that the industry knows some customers will face economic hardship for months due to the pandemic, and its member companies "will work with these customers to help address their individual circumstances. ... We want to do everything we can to keep our customers connected with flexible payment plans and affordability programs. ... the industry will also continue to pursue new and innovative ways of helping consumers stay connected while the nation recovers. Companies will continue to offer expanded low-income support programs and are forging new partnerships with schools and other groups affected."
How long that voluntary company goodwill will last isn't clear, said Public Knowledge Senior Policy Counsel Jenna Leventoff. "Eventually, things are going to go back to normal," she said. "The companies are not going to keep this up forever," especially once the emergency ends.
“These temporary offers assisted tens of thousands of customers who experienced economic hardship due to the COVID-19 pandemic," AT&T emailed, saying customers experiencing pandemic-related economic hardship can work out payment arrangements. It said it continues to offer its low-income Access internet program at $10 a month.
Windstream emailed that it "will continue to work with any residential and small business customers facing financial hardships caused by the coronavirus pandemic to keep them connected to telecommunications services. This will include working with customers on deferred payment and settlement plans on a case-by-case basis as necessary." TDS Telecom said customers who received 60 days of free connectivity will get a $10 bill credit for the next six months and it's setting up payment plans to help keep customers connected. Iowa's ImOn said it will "honor the elements of the pledge as long as there is a federal or state declaration of an emergency due to the COVID-19," meaning deferring payments, waiving late fees and establishing payment plans. Comcast (see 2006180032) and Charter announced modified hardship terms.
When the unpaid customer accounts become a severe business hardship still isn't clear, said ACA's Polka. "Bad debt is a legitimate issue that's increasing," he said. ACA hasn't advocated to Congress for relief, but more stimulus funds to consumers "certainly would help low-income families to connect," he said.
Broadband and telephone companies, "especially small ones, cannot continue to provide service without being paid for an indefinite period of time," the FCC said. It noted Pai urged Congress to pass legislation tying broadband connectivity to COVID-19 aid (see 2006190062).
Editor's note: This article is part of an ongoing series about how the novel coronavirus is affecting telecom and consumers. It includes past stories on consumer broadband: 2004060038 and 2003190042. It also has five articles on 911, with the most recent two published in the last several weeks. They are here and here in front of our pay wall (along with some other virus coverage). So is an article about FCC transparency during the pandemic: here. Other articles have discussed keeping customers and ISP technicians safe, among other topics.