FCC Extends Pledge to Jun 30, 774 Providers to Maintain Service
In light of the aggravating COVID-19 situation, the Federal Communications Commission (“FCC”) yesterday announced that 774 broadband and telephone service providers have taken the Keep Americans Connected Pledge. Also, these companies have extended their commitment through Jun 30.
The service providers have agreed to not terminate services to any residential or small business customers because of their inability to pay bills due to coronavirus-induced disruptions, waive any late fees that any residential or small business customers incur because of their economic circumstances and open Wi-Fi hotspots to any American who needs them.
In the last month, FCC chairman, Ajit Pai, said that he was extending the pledge to Jun 30 that was originally set to expire on May 12. Since then, the number of service providers to join the pledge from across the nation has increased as more companies have signed for the first time than the ones that declined an extension.
The Backdrop
The FCC has been working hard to ensure that Americans stay connected during the COVID-19 pandemic. On Mar 13, Chairman Pai called on broadband and telephone service providers to promote connectivity for those impacted by the disruptions. To ensure that people do not lose their connectivity in these unprecedented times, he had asked them to take the Keep Americans Connected Pledge.
On Apr 2, the FCC established a $200-million COVID-19 Telehealth Program to help healthcare providers deliver connected care services to patients at their homes or mobile locations. The FCC and the Department of Education are jointly working to promote the use of $16 billion in funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s Education Stabilization Fund for remote learning.
Meanwhile, the FCC has granted temporary authority to several wireless companies to use the additional spectrum to ensure that they can meet their customers’ needs. It granted Special Temporary Authority to allow 33 wireless Internet service providers in rural communities. The list includes AT&T T, Verizon VZ, T-Mobile TMUS and U.S. Cellular USM among others to use the additional spectrum to help meet increased customer demand for broadband.
The FCC granted AT&T temporary access to use the additional spectrum to serve Puerto Rico and U.S. Virgin Islands. It is also keeping people informed about the latest COVID-19 phone and text-based scams and has issued an alert that provides tips to consumers to help them optimize their home networks.
Going the Extra Mile
Further, Chairman Pai challenged companies to go beyond the pledge, urging them to expand existing or develop new low-income broadband programs. Let’s take a look at some of the prominent players that are taking additional steps at no extra cost.
Through its Optimum and Suddenlink brands, Altice USA ATUS is offering 30 Mbps broadband service until the end of June to households that have K-12 or college students. AT&T is providing home Internet wireline customers as well as Fixed Wireless Internet customers with unlimited data, offering free data plans for certain school-issued tablets for 60 days. It has waived wireless voice and data overage fees for all customers, expanded eligibility for its low-income Internet program and offering two free months of service to new program participants.
CenturyLink CTL has suspended data usage limits, providing connectivity to the U.S. Naval Hospital Ship Mercy. Cincinnati Bell is providing free upgrades to high-speed Internet for all new fiber-eligible customers and donating $83,000 to schools in Ohio, Kentucky, Indiana and Hawaii. U.S. Cellular is providing extra hotspot data to certain customers as well as waiving data caps and overage charges on all plans through the end of July.
Verizon has added 15GB of high-speed data for wireless consumers and small businesses, with no data caps for DSL and FIOS broadband Internet plans. T-Mobile is offering unlimited smartphone data and additional mobile hotspot data for 60 days, providing free data to Lifeline partners’ customers and increasing data usage limits for students.
Windstream is offering two months of free service and waived activation fees for new low-income customers. It is also offering free audio and video conferencing for 90 days. Antietam Broadband is offering 60 days of free Internet service to new customers that are low-income families with students and suspending data overage charges through the end of June. Consolidated Communications is offering two free months of broadband to K-12 students who don’t have the Internet.
Final Thoughts
We are going through unprecedented times, with COVID-19 impacting everyone around the world. The crisis has established the importance of connectivity to keep society functioning. Communications service providers are committed to the FCC’s Keep Americans Connected pledge by maintaining service and waiving late fees for residential and small business customers impacted by COVID-19. Connectivity is more essential than ever in the current climate.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ATT Inc. (T) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
CenturyLink, Inc. (CTL) : Free Stock Analysis Report
United States Cellular Corporation (USM) : Free Stock Analysis Report
TMobile US, Inc. (TMUS) : Free Stock Analysis Report
Altice USA, Inc. (ATUS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
