[HN Gopher] The FCC Is Taking Steps to Wind Down the Affordable ...
       ___________________________________________________________________
        
       The FCC Is Taking Steps to Wind Down the Affordable Connectivity
       Program
        
       Author : _delirium
       Score  : 136 points
       Date   : 2024-01-27 03:50 UTC (19 hours ago)
        
 (HTM) web link (www.fcc.gov)
 (TXT) w3m dump (www.fcc.gov)
        
       | gurchik wrote:
       | The wind down period is a bit complicated so it's worth pointing
       | it out.
       | 
       | If you're already on the ACP, you will continue to receive the
       | benefit until the funds run out, which is probably April unless
       | Congress adds more funds which may not happen.
       | 
       | If you're not already on the ACP, you still have a chance to
       | enroll. You can send in an application until Feb 7, 11:59 pm ET,
       | and if approved, you will have the opportunity to sign up with
       | your local ISP. After completing _both_ steps, you will then
       | receive the benefit until April as said before.
        
       | silisili wrote:
       | I'm not going to opine on the program itself or who it serves,
       | but they are -way- too loose with the money IMO.
       | 
       | I make plenty, and still had my child's school, my ISP, cell
       | phone carrier, and others browbeating me into applying. I even
       | told them I didn't know much about it, but think I probably don't
       | qualify, and they kinda imply 'oh theres other ways.' I did
       | qualify, because my daughter's school is a CEP school. Out of
       | curiosity I did as they were instructing, and sure enough it was
       | approved without issue. Why? What's in it for my ISP and cell
       | provider to give me a discount? Were they receiving more back in
       | kickbacks?
       | 
       | I didn't renew because ultimately I felt guilty, but have to
       | wonder how many people who didn't need it took advantage.
       | 
       | On the plus side, it did allow me to keep Comcast's "secret"
       | $30/mo plan, that they let me keep after it expired.
        
         | chii wrote:
         | > What's in it for my ISP and cell provider to give me a
         | discount? Were they receiving more back in kickbacks?
         | 
         | the person you're talking to probably earned a commission or
         | bonus based on how many they can convince to sign up.
         | 
         | This is what happens to gov't incentive programs - the cash and
         | value generation is distorted.
         | 
         | Look at how homelessness problems in california is not solved,
         | despite paying more than some $200k per homeless person in
         | subsidies and grants. This is more than most (or any) job
         | would've paid to that person. And yet, it fails to achieve
         | anything of note, because the value generation (taxation) is
         | _not_ aligned with the value recipient (which is not the
         | homeless person, but the various orgs that spring up to eat the
         | value while attempting to prolong the gov't subsidy/grant).
         | 
         | Have a watch of https://www.youtube.com/watch?v=PNxQ8JWxWMA
        
           | WesternWind wrote:
           | Actually helping people who have become homeless is like two
           | steps away from what it should be, of course. One step in the
           | right directly would be more homelessness prevention (there's
           | some, but not nearly enough). Two steps would be systemic
           | changes so housing was more easily affordable.
           | 
           | That said, I had dinner tonight with a formerly unhoused
           | person here in SF, who is now living her life successfully
           | because of that help, has an apartment, is paying bills, etc.
           | 
           | So while you think it fails to achieve anything of note, I
           | think the problem would be a heck of a lot worse without it.
        
             | nielsbot wrote:
             | I also think people be overly concerned with the
             | "moochers". that said we should still dedicate resources to
             | make sure programs are applied fairly and not taken
             | advantage of.
        
               | rocqua wrote:
               | I love basic income for this. It prevents needing to
               | solve any kind of missuse since everyone is supposed to
               | get it.
        
               | largbae wrote:
               | A noble dream solution, but even in this case there will
               | be folks who try to collect the UBI of others in addition
               | to their own.
        
               | chefandy wrote:
               | Not all, but many of these concerns are drummed up by
               | people that want to add every conceivable resistance to
               | wealth redistribution possible, and the rubes that
               | believe their fabricated justification. Drug testing for
               | food and housing assistance is a great example. A
               | fraction of the amount of money spent gets "saved" and
               | the rare addict thrown off will probably cost the system
               | more money as a homeless addict. Ultimately, it comes
               | down to contempt for people who have less, and wanting to
               | see them humiliated.
        
               | ponow wrote:
               | Yes, wealth redistribution is genteel theft and should be
               | thwarted at every turn.
        
               | AllegedAlec wrote:
               | Please stop hitting that straw man. My hay fever's
               | starting to play up.
        
               | sha2468 wrote:
               | An effective test for determining if reading an opinion
               | is a waste of your time is: watch for language that
               | assigns an explanation to the behavior of others.
               | 
               | Basically: they don't describe what happened. They
               | describe how other people are less good.
               | 
               | "These concerns are drummed up by people who what to add
               | every conceivable resistance to wealth redistribution
               | possible"
               | 
               | Not the language of an open hearted soul. I'm going to
               | default to "unconvincing argument" as the infinitely more
               | plausible explanation.
        
               | chefandy wrote:
               | > watch for language that assigns an explanation to the
               | behavior of others.
               | 
               | K
               | 
               | > Not the language of an open hearted soul.
               | 
               | Found some.
        
               | HumblyTossed wrote:
               | Amazing the number of people on HN who dislike any
               | measure of helping those less fortunate.
        
               | whythre wrote:
               | If what you consider evil is standing in the way of
               | Marxist utopia, well bud, I think you have your moral
               | heuristic exactly, murderously wrong.
        
               | kiba wrote:
               | We shoulda leave words like Marxist utopia out of
               | conversations, even communism and capitalism. It shortcut
               | people's thinking.
               | 
               | That said, welfare programs are probably more efficient
               | if they applied more broadly to society as opposed to
               | adding paperwork barriers to people applying for aids.
        
               | chefandy wrote:
               | Evil is a useless term unless you're discussing fictional
               | super villains or religion. If you think basic assistance
               | is a Marxist utopia, well bud, I think you need to look
               | utopia up in the dictionary and learn what Marxism is
               | from a different source than Newsmax.
        
               | mistrial9 wrote:
               | actually the moochers wear business clothing.. the actual
               | homeless are often damaged and addicted people who are
               | stuck in hell loops
        
               | gopher_space wrote:
               | The majority of homeless people are at work or in school
               | during the daytime. The people you see on the street are
               | the tip of an enormous iceberg.
        
           | EasyMark wrote:
           | California's failures are part of throwing money at something
           | with no feedback loop to kill off unsuccessful strategies
           | (like a lot of government programs). California is too lax on
           | enforcement side. If you don't have the ability to take drug
           | addicts and mentally ill off the street and put them in
           | therapeutic programs nothing will ever happen because those
           | are 80-90% of the chronically homeless, the systems will
           | absorb whatever money you throw at it and there will never be
           | any positive results.
        
           | specialist wrote:
           | > _despite paying more than some $200k per homeless_
           | 
           | And yet we're told universal basic income is too expensive.
           | 
           | Give People Money [2018] https://www.amazon.com/Give-People-
           | Money-Universal-Revolutio...
           | 
           | Am policy noob, so I don't know how to articulate this
           | properly:
           | 
           | I support whatever social safety net wrap around services
           | people may need.
           | 
           | But I don't support our top-down welfare bureaucracy. When a
           | mere fraction of our spending benefits the actual people in
           | need, wtf are we doing.
           | 
           | How I usually phrase it:
           | 
           | Help people help themselves. Then help those who can't.
           | 
           | (Rant over, thanks for listening.)
        
             | underlipton wrote:
             | >When a mere fraction of our spending benefits the actual
             | people in need, wtf are we doing.
             | 
             | Giving jobs to the people "worthy" of a non-profit position
             | (unemployable anywhere else). Which isn't to say that non-
             | profits are particularly useless, just that a large swath
             | of jobs in the US are just there so that someone's friend
             | or family member or neighbor won't become destitute. If
             | you're not in the network? Tough luck.
        
           | qingcharles wrote:
           | I don't know about ACP, but its sister program Lifeline pays
           | for signups. That's why here in Chicago's South Side there is
           | someone giving away phones and tablets on every street
           | corner. Really.
        
         | Dalewyn wrote:
         | >I didn't renew because ultimately I felt guilty, but have to
         | wonder how many people who didn't need it took advantage.
         | 
         | Honest people finish dead last in the race that is life. The
         | winners are people who know where to draw the line between
         | honesty and God Damn Lies(tm).
         | 
         | I say that as another fellow honest person (or at least I like
         | to think I am...).
        
           | vasco wrote:
           | There's a race?
        
             | runlaszlorun wrote:
             | You nailed it in three words. Bravo.
        
               | jtbayly wrote:
               | Kind of four words, though... lol
        
           | silisili wrote:
           | Oh, you're absolutely right about that. With the rise of
           | slumlords, crypto bros, etc. in the last few years it's been
           | a test. At times I think about the ways I could have 'made
           | it' less than ethically.
           | 
           | At the end of the day we all end up in a pine box. And if I'd
           | taken advantage of people for money, it'd probably keep me up
           | at night feeling guilty. Heck I felt guilty accepting money
           | back from people I'd loaned it to that needed it.
           | 
           | I like to think there's enough of 'us suckers' to keep
           | society as a whole running functionally, and don't want to
           | know if not :).
        
             | GreenWatermelon wrote:
             | One of the benefits of having religious beliefs is the
             | piece of mind that comes with knowing that someone is
             | keeping note of those sacrifices I make, and the life is
             | especially not a race, and finishing dead last in the money
             | race does not mean losing.
             | 
             | So yeah, we aren't suckers, and without us our civilization
             | will collapse.
        
               | 0134340 wrote:
               | That's such a naive take and insulting to those who
               | haven't encountered any believable gods. You're implying
               | those without religious beliefs are holding society
               | together when it's proven that in nature that even birds
               | have a sense of fairness. Even without belief in gods,
               | birds will 'take note' when other birds receive food non-
               | proportionately[0]. That's not even mentioning how
               | religion has been used in the past to tear societies
               | apart as well as individuals. Once again, I get tired of
               | having to defend secularism from this special snowflake-
               | ism, virtue-signalling and self-righteousness that
               | pervades the religious mindset. You do things animals do,
               | be careful in thinking you're much better than we are.
               | 
               | 0: https://www.oipa.org/international/animals-sense-of-
               | fairness
        
           | wolverine876 wrote:
           | > Honest people finish dead last in the race that is life.
           | The winners are people who know where to draw the line
           | between honesty and God Damn Lies(tm).
           | 
           | It depends on what race you're running. The problem is
           | letting the con artists define the race - for money, for
           | power. If you are running for something else, the cons are
           | the ones that are losing. For some reason, our society defers
           | to the cons, especially these days.
           | 
           | The cons disparage honesty because it doesn't work in their
           | race - how can you be an effective con if you act honestly? -
           | and they don't understand how to operate it; they've
           | accumulated skills and habits in manipulation, not honesty
           | (which takes skill and experience to do effectively in real
           | life situations).
        
         | ocdtrekkie wrote:
         | The biggest thing is the ISP is making money the customer isn't
         | hurting for. So their total profits are higher, and they might
         | even be able to raise your rates with some nonsense junk fees,
         | but because the government is footing part of the bill, you
         | don't care as much/tolerate it.
         | 
         | The ACP has the same problem our healthcare often does: Rather
         | than forcing corporations not to fleece people, the government
         | foots the bill and gets fleeced itself instead.
         | 
         | The US government seems unwilling or unable to just put their
         | foot down and say "you're charging too much, and we're putting
         | a stop to that".
        
           | jtbayly wrote:
           | The largest gov run health care programs tell providers
           | exactly what they will pay. What are you on about?
        
             | ufo wrote:
             | They're arguing that the USA doesn't do that, but should.
        
             | fnimick wrote:
             | Then why is Medicare being able to negotiate drug prices
             | instead of being required to pay the list price such a big
             | deal?
        
         | kevin_thibedeau wrote:
         | It sets a subsidized price floor preventing true competition
         | that would naturally offer cheap plans. It's ridiculous that
         | you can't buy sub-$50 plans in many markets.
        
           | tzs wrote:
           | A program that started in 2021 is responsible for the lack of
           | cheap plans?
        
         | Operyl wrote:
         | I
        
         | EasyMark wrote:
         | how would those companies browbeating you know that you "make
         | plenty". The program needs a policy revision not "lets cut poor
         | people off internet". They would expect honest people not to
         | take them up on the offer if they making plenty of money. It's
         | called being part of a society and knowing you're taking money
         | from a program being targeted at the poor.
        
         | underlipton wrote:
         | People forget that ISPs took billions in government money a few
         | decades ago to fund a broadband rollout (and the attendant drop
         | in prices) that never happened. Overall costs aside, as an
         | individual, any discount like this is just someone putting back
         | money in your pocket that should never have been taken out in
         | the first place.
        
         | ensignavenger wrote:
         | The ISPs themselves only recieve the amount from the FCC of
         | your discount. The advantage to the ISP of enrolling everyone
         | they can in the program is stability. They get that money every
         | month, wether you lose your job and can't pay or you just
         | forget to pay. Maybe thats not a rsik for you, but the ISP has
         | enough customers for whom that is a risk, that marketing it to
         | everyone is well worth it.
         | 
         | I don't know why the school would push ot so jard, except
         | making sure that everyone who needs it gets on it so they jave
         | internet at home. Schools do push everyone to apply for the
         | Free and Reduced lunch program, wether they need it or not,
         | because there are many other funding programs tied to it. I
         | don't know of any programs tied to the ACP directly, though.
        
         | aetch wrote:
         | If you think $30 is low, wait until you find out about
         | Comcast's fixed rate secret $10/mo plan that you can ask them
         | for.
        
       | Mountain_Skies wrote:
       | I looked into this for a relative and the ACP provider space is
       | full of scammy looking companies that don't appear to offer much
       | above what is already offered by the Lifeline program. The big
       | providers also participate in the program and unless you
       | absolutely have no money for a monthly fee, seem to be the way to
       | go instead of with the questionable resellers that fit their fee
       | into the ACP subsidy completely. And don't get me started on the
       | "low cost" trash devices they're selling for a "co-pay of $10".
       | The program is good in theory but the implementation feels like
       | it is coated in a thick layer of pond scum.
        
         | qingcharles wrote:
         | I'm confused by this. As someone who has set up dozens of
         | released prisoners with ACP, I think you are wrong.
         | 
         | With Lifeline, in my neighborhood, you have a dozen scammy
         | people on every street corner giving you a free phone or
         | tablet, sometimes with no fees, other times they charge you
         | (whether this is legal I don't know). These devices all come
         | with only 15GB/mo of data which the ex-cons use up on YouTube
         | or PornHub within the first three days of each month and then
         | have no data to do anything essential with.
         | 
         | With ACP I can go into any cellphone store, Cricket, Metro,
         | etc, get them a real 5G unlimited plan and decent phone for
         | $40/mo, take off the $30/mo for ACP and off they go. All they
         | have to do is make sure they find the $10 to keep their plan
         | every month and, believe me, they want that porn to keep
         | coming...
        
       | cowpig wrote:
       | I'd be interested to see some kind of economic analysis of this
       | program.
       | 
       | On its face, the government subsidizing a for-profit company that
       | has a monopoly seems like a terrible idea. Comcast already
       | extracts monopolistic profits and thus captures as much of the
       | economic surplus as possible.
       | 
       | Given that, price caps make a lot more sense to me. That's what
       | has worked for utilities in general. If there's only one
       | producer, they should be negotiating with one consumer.
       | 
       | But maybe I don't see the whole picture. Did the subsidy
       | agreements work as a carrot to entire Comcast to lower its prices
       | for enough residents that it was a net benefit? Are the positive
       | externalities of a connected population worth the cost? Did this
       | program work in some other way than subsidy?
       | 
       | Would love to learn more about this if anyone has good sources
        
         | zbrozek wrote:
         | In California we have the CPUC which regulates utilities. Our
         | three biggest utilities charge around 3x the national average
         | for electricity. The largest--PG&E--has also been setting the
         | state on fire and blowing up neighborhoods.
         | 
         | It doesn't seem like this model works either.
        
           | Retric wrote:
           | The actual implementation matters, when a bridge fails the
           | issue isn't bridges it's the design of that specific bridge.
           | 
           | As the model works fine in other locations, fixing
           | California's issues with mismanagement/poor incentives should
           | be the priority not simply giving up.
        
             | hedora wrote:
             | For example, for PG&E, the root cause of them blowing up
             | that neighborhood was that the money that was supposed to
             | go to upgrading the gas lines was embezzled and they faked
             | the repair logs for the repairs.
             | 
             | Now, we have no idea which lines were repaired and not.
             | Since this started decades ago, they have to dig up and
             | inspect a huge number of lines.
             | 
             | Anyway, "mismanagement/poor incentives" is leaving out a
             | lot of details involving graft and corruption, and
             | malicious local governments.
             | 
             | For an example of corrupt/malicious local regulators: the
             | Golden Gate Bridge maintenance road they recently built in
             | Marin cost more than the bridge (inflation adjusted) and
             | took longer to plan + build as well.
        
               | bushbaba wrote:
               | What i dont get is that you have a private company which
               | mis managed its assets. Caused harm to the public. And
               | the public bails them out with no equity or upside. Total
               | shame as the CPUC could have demanded the state or rate
               | payers get equity/bonds in the company for the bail out.
        
               | ryandrake wrote:
               | The USA basically has one politically viable solution to
               | every problem it faces: "handing money to corporations."
               | That's all Congress and States are willing to do.
               | Electric utility graft and corruption? Hand them money.
               | Banking failure? Hand them money. Airplanes falling
               | apart? Hand them money. Health Care incentives
               | misaligned? Hand them money. Poverty? Hand money to
               | corporations that will embezzle most of it. People out of
               | work during COVID? Hand their employers money. Top
               | corporations getting too big and powerful? Believe it or
               | not, hand them money. That's the only tool in the
               | toolbox. It's helpful to think of Congress as a gigantic
               | money funnel where our tax dollars go in and they take
               | turns aiming it at their favorite corporations.
        
               | the_optimist wrote:
               | The government itself is akin to a perfect corporation:
               | not liable, no accountability, monopoly on taking,
               | monopoly on force. What's this alternative that
               | corporations that you're alluding to?
        
               | paholg wrote:
               | Jesus, in my mind the first thing you do there is arrest
               | a bunch of people and nationalize (or statenize I guess,
               | or whatever the word would be) the company.
        
               | eropple wrote:
               | _Statenize, v.: to banish to Staten Island._
               | 
               | Can't say it couldn't help.
        
             | zbrozek wrote:
             | What seems to actually work is increasing market
             | competitiveness. The open access rules that gave us MVNOs
             | appear to have worked great. Texas electric customers have
             | lots of choice and lower costs under similar rules.
             | 
             | These broadband subsidies might be too good, or at least
             | too well captured by too few players. They may be a good
             | idea generally, but it looks like it's time to revisit the
             | details.
        
               | Retric wrote:
               | MVNOs share infrastructure. Nowhere has competitiveness
               | in terms of the actual grid only on the energy production
               | and billing sides.
               | 
               | The Texas grid is a massive failure in terms of both cost
               | and reliability. Somewhere between 246 and 702 people
               | were killed in 2021 when operators had already seen
               | similar issues in 2011. Similarly people received bills
               | that more than wiped out any long term savings they had
               | received from hourly rate charging.
        
               | dangus wrote:
               | Is Texas electric a good example? It seems like a lot of
               | people in Texas were swindled into buying variable rate
               | plans that caused rate spikes resulting in $5,000
               | electric bills.
               | 
               | https://www.businessinsider.com/why-texas-residents-hit-
               | with...
               | 
               | ERCOT is not a model that anyone should strive to
               | emulate.
               | 
               | https://99percentinvisible.org/episode/grid-locked/
        
               | 9659 wrote:
               | Not a swindle.
               | 
               | One company offered a plan where all of the electricity
               | was purchased on the spot market. All of it.
               | 
               | Spot market purchases of electricity are very cheap.
               | Except when they aren't.
               | 
               | Most months my electricity bill was 1/2 of current.
        
               | dangus wrote:
               | It's a swindle because of the marketing of the plans and
               | the exorbitantly high maximum rate caps. Every person who
               | has knocked on my door to sell variable rate plans
               | emphasizes the upside of the deal: why pay more than the
               | current rate? You're wasting your money on paying for the
               | fixed rate that's mostly higher than the going rate.
               | 
               | Like you said, most of the time you save a good amount of
               | money. The salespeople and marketing pamphlets emphasize
               | that. Do you really believe that the executives at these
               | utilities are ignorant to the fact that most of their
               | customers don't fully understand the implications? I
               | think they sell the plans specifically because customers
               | don't understand them.
               | 
               | Worse for Texas, their system's market pricing setup
               | incentivizes power utilities to minimize their overhead
               | capacity. The closer their supply is to demand, the
               | higher the price they can get. But it leaves very little
               | wiggle room for emergency situations (99% Invisible has a
               | good episode about this). Therefore, their grid is more
               | prone to spikes in variable rate pricing than other
               | states.
               | 
               | Like financial instruments such as options trading,
               | financial games like this make sense for the wealthy who
               | have a cushion of risk tolerance. I can make more money
               | faster with options trading compared to an index fund!
               | 
               | But for the median and below wage earner, sudden bill
               | surprises shouldn't be something that the government
               | enables for basic necessities like utilities.
        
               | 9659 wrote:
               | we agree on all the facts.
               | 
               | i paid my $2,300.00 monthly electrical bill without
               | complaint. (usual about $75)
               | 
               | the upside and downside were understood.
        
               | dangus wrote:
               | Great. I am sure that you can understand why you're
               | probably the exception in:
               | 
               | 1. Fully understanding the potential of the downside.
               | 
               |  _and_
               | 
               | 2. Being able to financially cover the downside.
               | 
               | The median transaction account balance in America is
               | $5,300, which includes money in the accounts for things
               | like paying mortgage and rent.
               | 
               | https://www.bankrate.com/banking/savings/savings-account-
               | ave...
               | 
               | So the median person signing up for that plan has to be
               | ready to liquidate half their cash on an electric bill.
               | If you're below the median you're even more screwed.
               | 
               | And I'm sure to all this you'll say "I made an informed
               | choice and I should have that choice," but I think that's
               | a highly debatable concept that depends a lot on the
               | details - one of those critical details is the maximum
               | rate.
        
               | arrosenberg wrote:
               | > Not a swindle.
               | 
               | I'm going to assume, based on this statement, that you
               | have an education that allows you to forecast and do
               | cost-benefit analysis. Most people do not, and just hear
               | "you will pay less". When you knowingly do this to
               | people, it's a swindle.
               | 
               | Yes, we do need to protect some people from bad choices,
               | and yes, that will limit the economic freedom of the very
               | well-educated to some small degree. That's society, baby.
        
               | 9659 wrote:
               | As a resident of texas, allow me to describe / explain
               | how electricity works.
               | 
               | Consumers can select from maybe 50 "retail providers".
               | They all have some kind of marketing deal, like "all
               | green" or "free weekends" or "0.14 a kwh fixed for 3
               | years".
               | 
               | You pick your deal and deal with this 'company'. All of
               | the electricity comes from the same place. All of the
               | wiring is maintained by one company.
               | 
               | Your "choice" is deciding who sends your bill and
               | collects the money.
               | 
               | Seems like a monopoly would be a lot cheaper. Less
               | employees, less infrastructure, less advertising.
        
               | AaronM wrote:
               | A monopoly would be cheaper in a perfect world with no
               | corruption, and no profit motive/incentive. Competition
               | seems to be the only way in our current capitalist
               | society to reduce the prices consumers pay.
        
               | ssl-3 wrote:
               | A corporation operates in their own self-interest.
               | 
               | A corporation that is a monopoly has no motivation to
               | keep pricing "fair" and, in fact, has an interest in
               | making prices as high as possible. It is never cheaper
               | this way.
               | 
               | We, as a society, seek to work around the problems that
               | naturally-occur with monopolies by regulating them.
               | 
               | In Ohio, most of our residents have one provider (AEP).
               | AEP owns the local infrastructure, and they also own the
               | transmission infrastructure, and they are pretty tightly
               | regulated.
               | 
               | To help keep pricing in check, it is required by
               | regulation that the rate at which AEP buys their
               | electricity at is set periodically by a competitive bid
               | process. (This is, in theory, a process that works well
               | for consumers and provides a _reasonably_ low price: If a
               | supplier can buy and sell (or otherwise produce)
               | electricity cheaper, then they can put their bid in and
               | have an opportunity to do so.)
               | 
               | The problem with regulation is that it is regulates. It
               | is inflexible.
               | 
               | And sometimes, this bid process goes wrong: Early in
               | 2023, for instance, it resulted in a generation price
               | that was set to approximately double in six months[1].
               | 
               | The solution to both monopolies and regulation is
               | consumer choice in a competitive marketplace.
               | 
               | Obviously, we in Ohio can't usually decide whose lines
               | and infrastructure we use -- they're monopoly-owned.
               | There's some exceptions to this like [2][3], but broadly
               | speaking: Of course AEP is involved, because they have to
               | be involved.
               | 
               | But we do get to choose our generation supplier[4], which
               | is probably similar in function to how folks in Texas can
               | pick their "retail provider" (except we don't get time-
               | dependent metering).
               | 
               | And that very limited aspect of consumer choice does work
               | for me, the consumer. I was able to completely bypass the
               | 2023 price hike by selecting a different generation
               | supplier. In fact, my total billed price per kWh of
               | electricity used (inclusive of distribution,
               | transmission, and fees) was actually slightly reduced
               | compared to what I had been paying previously.
               | 
               | It's not a perfect system, as there are no perfect
               | systems. But this little sliver of competition is better
               | than being completely beholden to either an unregulated
               | absolute monopoly or an inflexibly-regulated absolute
               | monopoly.
               | 
               | [1]: https://puco.ohio.gov/utilities/electricity/resource
               | s/histor...
               | 
               | [2]: https://clydeohio.org/159/Clyde-Light-Power
               | 
               | [3]: https://www.columbus.gov/utilities/about/The-
               | Division-of-Pow...
               | 
               | [4]: https://www.energychoice.ohio.gov/
        
               | aetch wrote:
               | You aren't actually buying power from different people in
               | states where you choose a "different" provider. Those are
               | all middlemen offering a variety of more expensive rate
               | plans and "benefits" that appear to be cheaper but
               | actually are more expensive than buying directly from the
               | main utility provider. (The middle man has to make money
               | somehow after all) In reality the power travels over the
               | main providers' lines so the main provider is usually
               | cheapest.
               | 
               | It's just an illusion of choice and I would rather not
               | deal with the constant door to door utility MVNO
               | salesmen.
        
           | cowpig wrote:
           | Are you saying the price capping model doesn't work? If so I
           | don't follow the thought process: you're comparing California
           | (price capped) against the national average (also mostly
           | price capped to some degree)
        
             | zbrozek wrote:
             | That's a good criticism.
             | 
             | The comparison is more to cellular providers where there's
             | open access to the same underlying infrastructure, and we
             | have consistently good pricing nationwide thanks to
             | competition.
             | 
             | The point in referencing national averages is to show that
             | the electric utility model can result in sclerotic and
             | under-performant regions that are impossible to fix.
        
           | gamblor956 wrote:
           | The BLS actually maintains statistics on this, and while CA
           | does pay higher than average prices, it's less than 2x the
           | national average.
           | 
           | Considering the geographic size of the electricity grid in
           | CA, that's not surprising. A bigger grid is more expensive to
           | build and maintain.
        
         | hedora wrote:
         | I'd like to see this as well. I suspect the money would be
         | better spent subsidizing/establishing community-owned ISPs in
         | underserved areas.
         | 
         | There are still old telephone co-ops from the early days of the
         | telephone in the US. The one I'm thinking of is extremely rural
         | (population density is < 2 people per square mile), with a
         | median county household income under $25K. They put in fiber to
         | the home years ago, and 1GBit symmetric is well under $100 a
         | month. (They have cheaper plans too.)
         | 
         | Similarly, some places have started using companies like this:
         | 
         | http://nextlevelnetworks.ca
         | 
         | You pay them to build out a local fiber network. You just pay
         | the line installation, and then the community owns the network.
         | The minimum project size is about 100 houses because that leads
         | to a $100/month per house bill from the incumbent network's
         | $10,000/month fiber uplink.
         | 
         | Concretely, imagine there was a subsidy for any area that
         | doesn't have 1GBit symmetric for under $100 a month. Starting
         | in the poorest communities, use the ACP money to establish a
         | local co-op (per community, creating jobs) that charges 1.1x
         | the cost of the fiber uplink per month, and saves 10% for
         | network expansion / maintenance.
         | 
         | The ACP burned through $14.2B since 2021. It costs about $10K
         | to run fiber to a house (it's almost all labor, so in urban
         | areas you have short runs with high cost of living for the
         | workers, and in rural areas you have long unobstructed runs
         | with low cost of living).
         | 
         | They could have wired 1.4M low income houses for fiber with
         | that money, and the co-ops could then charge the houses well
         | under $100 per month for connectivity.
        
           | cowpig wrote:
           | This thought process makes some sense to me, though I have
           | doubts about the implementation. Is fiber really the best fit
           | for rural areas? What about some kind of wireless solution?
           | Surely that would be more cost-effective?
        
             | hedora wrote:
             | Wireless could also work, but it requires line of sight,
             | and you have to put it on a roof / poll, which isn't always
             | feasible.
             | 
             | Another subtle problem with rural wireless is that you have
             | to point to a well-connected area, so the cheapest way to
             | service houses that are on the side of the hill facing away
             | from town is often either fiber or putting the tower in
             | orbit. Otherwise, you'd need to run a fiber trunk line to
             | the middle of nowhere to support the ISP side of the
             | wireless link.
             | 
             | Fiber has the property that you can run it in parallel to
             | existing power lines, so any house with power already has
             | an existing right of way to piggyback on (owned by the
             | wrong person, but imminent domain exists). Also, you can
             | choose to trench the fiber or run it on telephone polls.
             | 
             | If I were running things, I'd look into strategically
             | deploying fiber-to-the-home to areas with good line of
             | sight to poorly connected areas, and then use a hub and
             | spoke network topology where the spokes are directional
             | wireless and some of the homes are hubs.
             | 
             | That creates a second order problem though: You need backup
             | power at the hubs or parts of the network will go down when
             | the electricity goes out. Long term, it's probably cheaper
             | to maintain a network of buried fiber than it is to
             | maintain the electricity infrastructure needed to keep the
             | towers online.
        
             | tallowen wrote:
             | My experience living in Montana has been that wireless
             | internet providers can be great but they don't provide
             | great low latency service. It creates a perception that one
             | can't live in certain areas and do remote work since it's
             | too hard to do video.
             | 
             | When it comes to broadband there is a question of "how good
             | is good enough" but for the people living in Hamilton
             | Montana (population 5k) I hope there can be a path to
             | infrastructure investment that leads to high quality
             | internet in town.
        
               | hedora wrote:
               | Wireless internet should be low latency (unless you're
               | talking about geosynchronous satellite).
               | 
               | During high demand, our local WISP has 1 second latency
               | to the internet because their wired backhaul link is
               | terrible. It's less than 1ms to the tower. Starlink to
               | the internet is in the 20-30ms range, and it's bouncing
               | into orbit and back.
        
             | hn_acker wrote:
             | In the long run, fiber is the cheapest [1] and the best
             | technological fit in rural and non-rural areas. Satellite
             | internet is unreliable in storms due to attenuation, has
             | decreasing bandwidth as more users sign up (which is one
             | reason Starlink is expensive), and creates space junk down
             | the line. Wireless solutions on land via 5G and the like
             | require wires (will become mostly fiber) to carry the
             | internet traffic to intermediate transmitters. 5G also
             | needs more cells [2] per unit area compared to 4G to
             | compensate for attenuation.
             | 
             | [1] https://www.eff.org/deeplinks/2020/06/why-slow-
             | networks-real...
             | 
             | [2] https://www.lifewire.com/5g-cell-towers-4584192
        
           | hedora wrote:
           | I guess I spent a lot of words saying:
           | 
           | The ACP tries to make an expensive thing less expensive by
           | artificially increasing demand. What if we tried increasing
           | supply instead?
        
             | rtkwe wrote:
             | Is it really something that has the same supply and demand
             | curves though? Once the wires are run and especially with
             | fiber the ability to add another customer is pretty cheap.
             | The main goal from what I've read is to encourage building
             | out into poorer areas by boosting the customer base in
             | areas where it might otherwise be uneconomical to build
             | into. Most things diverge from the econ 101 model
             | significantly.
        
               | _heimdall wrote:
               | I expect other parts of the business are more susceptible
               | to the usually supply constraints, like customer service
               | and maintenance.
        
               | smegger001 wrote:
               | What customer service? this is Comcast we are talking
               | about. Consistantly ranked in the top ten worst companies
               | in custom service nation wide. And maintaince already
               | showed up only if the felt like when they felt and blamed
               | your equipment when they do.
        
           | mcmcmc wrote:
           | Co-ops are fantastic for utilities, over half the landmass of
           | the US is serviced by rural electric co-ops under the NRECA
           | established by FDR during the Great Depression. Internet
           | connectivity should absolutely be treated as a public utility
           | similar to electricity.
        
             | Triphibian wrote:
             | I have outstanding fiber-to-the-door internet provided
             | through my rural electricity co-op. I have no doubt that
             | we'd still be waiting for internet if it was up to Verizon
             | to supply it.
        
           | genewitch wrote:
           | It's the USDA that provides grants for small community ISPs
           | but their rules are clownshoes. your service area can't
           | overlap _any other service area_ , regardless of how awful it
           | is. Well, technically, that's not true. If there's 1.5mbit in
           | the area, they won't fund you - and it's not 1.5mbit in
           | practice, it's 1.5mbit _advertised_.
           | 
           | I went around and around with the government saying that at&t
           | obviously doesn't want to maintain this network so why not
           | get something up before they let the copper rot in the
           | ground.
           | 
           | Nothing doing.
        
         | jdksmdbtbdnmsm wrote:
         | > _price caps make a lot more sense to me._
         | 
         | Will never happen. Comcast has the power, not the politicians.
         | As Marx showed us 150 years ago, a state under capitalism tends
         | to become a capitalist state.
        
         | rtkwe wrote:
         | The idea on paper I think was to encourage building out the
         | infrastructure to areas that would not otherwise be profitable
         | enough to build to by increasing the number of available
         | customers in a poor neighborhood.
         | 
         | Personally I think it's a tough spot. Infrastructure projects
         | like ISP connections are best done once to a residence like
         | power or water/sewer which is usually a city or heavily
         | regulated natural monopoly. Ideally you could have the city run
         | fiber to residences in the metro area and companies could
         | compete for the service across those wires if we wanted to
         | cling to markets like some places do with various billing
         | providers for electrical power.
        
         | coryrc wrote:
         | How about we just stop subsidizing rural living and force big
         | city liberals to allow more housing?
        
         | gnicholas wrote:
         | Price caps could make sense, but in my experience the more
         | important missing piece is a requirement that a lower tier be
         | offered. Comcast keeps upping their lowest tier, and raising
         | the price concomitantly. I started out at 12Mbps and am now at
         | 80. I don't remotely need 80, and would love to pay half of my
         | current rate for half of my current speed. I'd even pay 2/3 of
         | my cost for 1/3 of my speed. But Comcast does not offer a tier
         | below 80/10 in my area.
        
       | gnicholas wrote:
       | Whenever Comcast raised my rates, I would call and ask for a
       | lower price or lower tier. In recent years, they always tried to
       | get me to sign up for this. One rep claimed that I qualified
       | because a student (my elementary aged child) lives in the home.
       | Another claimed that I qualified because my child receives free
       | lunch at school (as do all students at California public
       | schools). He said that it was common in his experience for people
       | to sign up under such pretenses.
       | 
       | I don't know to what extent this program is being abused, but
       | it's surely happening. The government is basically enabling the
       | cable companies to keep upping their base price, knowing that any
       | customer who is desperate enough for a discount will just find a
       | way to qualify themselves for this program.
       | 
       | I think being able to have internet at home is important. But
       | there should have been limits put in place to ensure that this
       | program was only being used for its intended purpose. Some
       | lobbyist got rich off this thing, for sure.
        
         | nilamo wrote:
         | It's interesting that we're talking about helping people reduce
         | costs, instead of penalizing companies that raise rates for
         | something that should be a utility and has close to fixed costs
         | to operate.
        
           | gnicholas wrote:
           | They are increasing speeds and increasing rates alongside.
           | This would be less objectionable in my mind if they
           | maintained the lower tier offerings. Instead they are selling
           | us up our indifference curves, as an economist would say.
        
         | CharlesW wrote:
         | > _I don't know to what extent this program is being abused,
         | but it's surely happening._
         | 
         | It's non-zero, sure. And although the GAO identified fraud
         | risks, no fraud assessment has been done. A humane response to
         | this would've been to perform a fraud assessment and allow the
         | FCC to take action against identified risks. This will hurt
         | poor families by widening the digital divide, impact family
         | education and employment, and reduce access to services.
        
       ___________________________________________________________________
       (page generated 2024-01-27 23:01 UTC)