A new report from the Benton Institue for Broadband and Society finds…
ACP and BROADBAND ADOPTION
· As ACP enrollment rose from 15 million households to nearly 23 million at the end of 2023, there was a positive link between ACP enrollment (as a share of eligible
households) and the level of broadband adoption (either wireless or wireline) in 2023 data.
· Statistical analysis shows that ACP had a role in “net additions” to broadband subscription levels on the order of 2.9 percentage points nationally, or approximately 3.8 million households.
· There was also a positive correlation between the growth in broadband adoption from 2021 to 2023 and ACP enrollment. This growth was in the context of very small growth in overall broadband adoption from 2021 to 2023. Analysis indicates that, absent ACP, growth in broadband adoption of any type would have been 0.8 of a percentage point lower than it was.
· These two types of positive correlations—between ACP enrollment and levels of broadband adoption in 2023 and growth in between 2021 and 2023—are evidence that areas where significant numbers of eligible households enrolled in ACP had more broadband subscribers than they otherwise would have.
ACP HELPED GET PEOPLE ONLINE in RURAL AREAS
· The “net addition” effect described above was more likely to be a rural phenomenon, meaning rural areas were associated with higher levels of broadband adoption
compared with urban areas—with ACP enrollment having a significant role in supporting subscriptions. The “net addition” effect was 6.9 percent in rural areas, compared with 1.7 percent in urban areas.ACP HELPED KEEP PEOPLE ONLINE in URBAN AREAS
· In urban and metro areas, ACP had a somewhat stronger influence on retaining existing subscribers. These are the “subscription vulnerable,” whose home internet connections
are sometimes at risk due to household budgetary pressure. Urban and metro areas have higher costs for foundational parts of the household budget, like food and housing. Including those factors in the analysis shows that ACP’s cost relief helps them stay online.
· ACP’s impact on the “subscription vulnerable” affects approximately 11.5 million households in this category; i.e., the ACP keeps about 8.8 percent of households online
with wireline service who otherwise might not be able to sustain service.