Charter says it lost 154,000 customers after US ends affordable internet program

Charter Communications, the parent company of internet provider Spectrum, said it lost 154,000 customers in the second quarter of 2024, with the end of the Affordable Connectivity Program cited as a primary reason.

Charter says it now has 28.3 million residential internet customers. The company says the expiration of the Affordable Connectivity Program directly caused at least 100,000 customers to end their service.

The Affordable Connectivity Program lowered internet bills for nearly 23 million Americans. The program launched at the end of 2021 and provided subsidies to low-income Americans for home internet service. The program provided discounts of up to $30 per month toward internet service for families.

Households on qualifying tribal lands could get up to $75 in subsidies.

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Families who make up to 200% of the federal poverty level or receive SNAP or Medicaid benefits were among those able to get the subsidies.

The program stopped accepting new applicants on Feb. 7, and the Federal Communications Commission said the program ran out of money in May after Congress opted not to renew its funding.

In January, a bipartisan group of senators, including two Democrats and two Republicans, drafted legislation to provide the program with an additional $7 billion. The Biden administration has also urged renewal of the program.

"This Congress, with bipartisan support, we’ve done an enormous amount, especially as a result of COVID, where there was a recognition that being on the internet and having access to that was really critical for the well-being of all of our families," said Peter Welch, D-Vermont. "Folks couldn’t go to school unless they had the internet, they couldn’t get a doctor’s appointment without the internet,” said Sen. Welch. "We’ve built out the internet, but it’s no good if you can’t afford to get on it."

Charter CEO Chris Winfrey said it's possible additional Spectrum customers will lose internet access as bills become due.

"Our service and retention teams are handling the volume of calls well, and we've retained the vast majority of ACP customers so far," Winfrew said. "The real question is customers' ability to pay, not just now, but over time. I expect we'll have a better view of the total ACP impact once we're inside the fourth quarter."