ISPs must accept gov’t subsidy on all plans—no more upselling, FCC chair says

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Less than a year after Verizon and other ISPs forced users to switch plans in order to get government-funded discounts, a new federal program will prevent such upselling by requiring ISPs to let customers obtain subsidies on any Internet plan.

With last year’s $50-per-month Emergency Broadband Benefit that was created by Congress, the Federal Communications Commission let ISPs participate in the program as long as they offered the discount on at least one service plan. The FCC said it did so to encourage participation by providers, but some major ISPs drastically limited the subsidy-eligible plans—forcing users to switch to plans that could be more expensive in order to get a temporary discount.

Congress subsequently created a replacement program that will offer $30 monthly subsidies to people with low incomes. The program also specified that ISPs “shall allow an eligible household to apply the affordable connectivity benefit to any Internet service offering of the participating provider at the same terms available to households that are not eligible households.” The FCC still has to make rules for implementing the new Affordable Connectivity Program (ACP), but that requirement prevented the FCC from using the same one-plan rule that helped ISPs use the program as an upselling opportunity.

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