About NDIA’s Low-Cost Plan Model

In the absence of ACP, NDIA encourages ISPs to offer a low-cost plan and/or a discount to qualifying households. NDIA is creating a good-better-best rating system to evaluate the affordability and quality of low-cost internet plans. The rating system will be featured on the Free & Low-Cost Internet Plans webpage to help consumers understand their low-cost options. The low-cost plan model outlined below includes criteria for a “better” rating on the webpage. The models are not mutually exclusive – a provider could offer both a low-cost plan and a discount that would cover the cost of that plan for an eligible household.

Why the model?

As the Affordable Connectivity Program (ACP) sunsets, NDIA’s Affiliates want to provide ACP participants in their communities with a suitable alternative. Before the pandemic, some Internet Service Providers (ISPs) offered “low-cost plans” for eligible households. However, the plans varied widely in their offerings, administration, and eligibility requirements, and many smaller ISPs didn’t offer one. The ACP has demonstrated the essential role of low-cost internet plans. According to the Federal Communications Commission (FCC), over three-quarters (77%) of the survey respondents say losing their ACP benefit would disrupt their service by making them change their plan or drop internet service entirely, and about half of the survey respondents (47%) reported having no internet service or relying solely on mobile internet service before receiving their ACP benefit. NDIA encourages ISPs to adopt the low-cost plan model and/or discount offer.

How did you create the model?

We spoke with the NDIA community to understand their requirements for a low-cost internet plan. In addition to a low-cost plan option, they strongly support a low-cost model that offers customers the flexibility to choose an internet plan that best suits their needs without the limitations of a traditional low-cost plan. ISPs could achieve this through a fixed discount that qualifying households can apply to any plan offered by an ISP. NDIA outlines the criteria for a Low-Cost Plan Model and a Fixed Discount below.

Low-Cost Plan Model Criteria

Eligibility requirements for participation in low-cost plans should be no more restrictive than:

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Cost

● Costs $30 per month or less, inclusive of all taxes, fees, and charges if the subscriber
does not reside on Tribal Lands, or
● $75 per month or less, inclusive of all taxes, fees, and charges if the subscriber resides
on Tribal Lands or designated high-cost areas,
● No additional non-recurring costs or fees to the consumer

Speed

● Minimum typical speed threshold of 100 Mbps/20 Mbps, or the fastest speeds the
infrastructure is capable of if it is less than 100 Mbps/20 Mbps
● Provides typical latency measurements of no more than 100 milliseconds

Eligibility Criteria

Should be no more restrictive than the following

Household Eligibility Criteria (aligns with ACP eligibility requirements)

Has an income that is at or below 200% of the Federal Poverty Guideline, or
Participates in any of these federal programs: SNAP, Medicaid, WIC, SSI, Federal Public Housing Assistance, Veterans Pension and Survivors Benefit, Free and reduced lunch program or school breakfast program, or
Have received a Federal Pell Grant in the current award year, or
Receiving a Lifeline Benefit

Tribal Eligibility Criteria (aligns with ACP eligibility requirements)

Live on qualifying Tribal Lands,
Income at or Below 200% of the Federal Poverty Guideline, or
Participate in any of the above programs and Bureau of Indian Affairs General Assistance, Head Start, Tribal TANF, or Food Distribution Program on Indian Reservations

Eliminate barriers for those who qualify

Including (but not limited to) instituting practices such as

● No termination fees
● No data caps, surcharges, or usage-based throttling, and is subject only to the same
acceptable use policies to which subscribers to all other broadband internet access
service plans offered to home subscribers
● No introductory rates or bundling requirements
● Enrollees can upgrade to the new low-cost offerings with higher speeds at no additional
cost when they become available
● Waiving unpaid bill/past due sign-up restrictions, allowing customers to go on a
repayment plan
● Allow current customers to access low-cost plans without a waiting period
● Waive installation and hardware/equipment charges
● Eliminate credit checks

Fixed Discount Offer Criteria

A $30 benefit that can be applied to any plan the ISP offers:



Eligibility Criteria

Should be no more restrictive than the following

Household Eligibility Criteria (Aligns with ACP eligibility requirements)

Has an income that is at or below 200% of the Federal Poverty Guideline, or
Participates in any of these federal programs: SNAP, Medicaid, WIC, SSI, Federal Public Housing Assistance, Veterans Pension and Survivors Benefit, Free and reduced lunch program or school breakfast program, or
Have received a Federal Pell Grant in the current award year, or
Receiving a Lifeline Benefit

Tribal Eligibility Criteria (Aligns with ACP eligibility requirements)

Live on qualifying Tribal Lands,
Income at or Below 200% of the Federal Poverty Guideline, or
Participate in any of the above programs as well as Bureau of Indian Affairs General Assistance, Head Start, Tribal TANF, or Food Distribution Program on Indian Reservations

Eliminate barriers for those who qualify

Including (but not limited to) instituting practices such as:

Waiving unpaid bill/past due sign-up restrictions, allowing customers to go on a repayment plan
Allow current customers to access low-cost plans without a waiting period
Waive installation and hardware/equipment charges
Eliminate credit checks
No termination fees

Finding Low-Cost Internet Plans After ACP

We don’t know if the ACP will continue, if a new program will replace ACP, if ACP will continue after a gap in service. No matter what happens, NDIA encourages ISPs to make low-cost internet plans available. While we continue to advocate for other federal solutions, NDIA’s Free & Low-Cost Internet Plans webpage will be a useful tool for digital navigators and others working with the community to provide up-to-date information for low-cost plans in your area.

Join the Fight to Save ACP

It’s Not Too Late.

Take Action Today and Ask Congress to Save ACP

Discover the value of ACP, use storytelling for advocacy, get tools, and take action to advocate for ACP. Check out the resources on NDIA’s ACP Advocacy page.

Learn About ACP Transition

To learn more about the ACP Wind-down, visit the ACP Transition page. The webpage covers details about the ACP Wind-Down, talking points for explaining the ACP transition to your community, information about ACP Transition Plans, and the critical role Digital Navigators play in transitioning communities off ACP. We’ll continue to add information, resources, and support materials so check the page often!