Our world turned upside down in mid-March when the pandemic hit, and it didn’t take long for key policymakers to realize that broadband connectivity is key for the millions of Americans now working from home, school children who not only finished their school year remotely but may be facing continued online classes this fall, and the countless others who have embraced telemedicine to avoid unsafe situations. Who wouldn’t prefer a remote Teledoc assessment rather than going into a doctor’s office these days? Recognizing the critical nature of these connections, the FCC encouraged Internet providers to take its Pledge to Keep Americans Connected by not terminating service to any residential or small business customers because of their inability to pay their bills, to waive late fees and to open Wi-Fi hotspots to any American who needs them.
Many of our members have gone beyond the terms of the pledge to support their communities because that’s what community-based providers do. After having extended the Keep Americans Connected Pledge through June 30, FCC Chairman Ajit Pai announced in recent weeks that the pledge will expire as of today – although providers have been asked to avoid disconnection of customers who are behind on their service bills through the month of July and to consider adoption of payment plans so customers can come current on their accounts. Such a transition is helpful so that companies, customers, and policymakers can all figure out next steps.
For all this good work, however, our members have also seen uncollectibles on the rise as their customers experience harder economic times due to the ongoing pandemic. Since mid-March, more than half of members we surveyed have seen an increase of up to 10% in uncollectibles, and another 15% of members have seen an increase of as much as 25% in uncollectibles. On average, we estimate that NTCA members have approximately $80,000 in accumulated “non-payments” by customers since the pandemic hit. These are small companies with fewer than 30 employees on average so these are significant amounts—and it’s hard to see how some customers will ever be able to make up all of their past-due payments.
As service providers consider how best to sustain services for consumers in the face of such challenges, it’s important that Congress step in to help as well. Our nation’s economic recovery and remote learning capabilities are dependent upon this connectivity, but smaller and rural operators can only give service away for so long before it is at risk. Indeed, as NTCA has noted since first flagging the need for such relief in March, and as the subsequently introduced bipartisan Keeping Critical Connections Act has highlighted, there is a general awareness that it has become increasingly difficult for smaller and rural operators to ensure consumers and small businesses can stay connected in the face of the pandemic and the ensuing economic crisis. Particularly given their need to support and deploy their networks, more critical than ever, and pay their own staff who have been essential heroes doing installs and critical customer service. Chairman Pai specifically raised this concern while testifying before the U.S. Senate last week, noting, “these companies, especially small ones, cannot continue to provide service without being paid for an indefinite period of time.”
I would like to thank Chairman Pai and the FCC for encouraging our country to support one another during this difficult time—and to the hundreds of NTCA members who stepped up to help. We hope that Congress is ready to help with this effort as well. That is why we urge quick passage of the Keeping Critical Connections Act introduced by Sens. Amy Klobuchar and Kevin Cramer and Reps. Peter Welch and Roger Marshall, which would appropriate $2 billion to reimburse smaller broadband providers who have provided free or discounted services to certain customers during this time and who did not disconnect customers who couldn’t pay.
As this pandemic has showed us over and again, connections matter. We look forward to working with Congress to ensure those connections remain in place and that our nation’s recovery proceeds from that solid foundation.