Low-income

President Biden and Vice President Harris announced that they have secured private sector commitments that will lower high-speed internet costs for millions of American families. As part of the Bipartisan Infrastructure Law, the President and Vice President worked with Democrats and Republicans to create the Affordable Connectivity Program (ACP), which allows tens of millions of American households to reduce their internet service costs by up to $30/month (or $75/month on Tribal lands).

As policymakers begin to plan how to use Infrastructure Investment and Jobs Act (IIJA) funds to increase broadband connectivity, there are three important data points from two recent surveys to keep in mind:

1. Some 32% of households are subscription vulnerable, that is, they struggle to maintain service and have a very difficult time affording service.

2. Only 18% of cellphone-only respondents were “very satisfied” with their online access for activities such as school or work, activities that moved online during the COVID-19 pandemic.

 This is the third in a series of articles looking at which providers are opting to offer services supported by the Affordable Connectivity Program. Here, Benton looks at the offerings of the largest wireless companies in the United States. According to wireless trade association CTIA, all three national providers and numerous regional providers support the Affordable Connectivity program—representing approximately 95% of existing wireless subscriptions and covering more than 99% of all Americans.

Low-income households are spending too much on connectivity. Prior to the pandemic, the Federal Communications Commission’s Lifeline program supported mainly wireless communication services for low-income households; its $9.25/month subsidy resulting in service plans that restricted voice and data usage. To address Americans’ online connectivity needs during the pandemic, Congress directed the FCC to launch the Emergency Broadband Benefit (EBB) program—a historic expansion of financial support for universal service.

As Congress found in the Infrastructure Investment and Jobs Act, access to affordable, reliable, high-speed broadband is essential to full participation in modern life in the United States. The aim of the Affordable Connectivity Program is to ensure broadband is affordable for any household no matter its income. Although the Federal Communications Commission has met an incredibly tight timeline to adopt rules and launch the new Affordable Connectivity Program, there is still a great deal of work to be done. Here's a quick look at what remains on the FCC's agenda.

Congress created the Affordable Connectivity Program through the Infrastructure Investment and Jobs Act, building on the Emergency Broadband Benefit Program created earlier in 2021. For the EBB Program, Congress provided the Federal Communications Commission with $3.2 billion to make monthly broadband service bills more affordable for low-income households. The Infrastructure Investment and Jobs Act adds an additional $14.2 billion for the Affordable Connectivity Program, while leaving in place the EBB Program's basic framework.

Understanding affordability of internet service and its role in adoption are crucial for developing solutions to close the digital divide.The goals of this study were first to understand the barriers to connectivity and efficacy of low-cost internet service options; and second, to use the findings to inform digital inclusion policies, advocacy efforts, and other initiatives that aim to drive digital equity. The findings were informed by a national survey on broadband adoption among low- and lower-middle income households.

How will the Infrastructure Investment and Jobs Act impact universal service policy and, specifically, the Lifeline program? The new law sets up a transition from the Emergency Broadband Benefit, a program that is only six months old, to the new, more permanent Affordable Connectivity Program.

Universal service is the principle that all Americans should have access to essential communications services, like phones and broadband. You may not have heard much about it, but a universal service crisis is right around the corner. Due to Federal Communications Commission inaction, nearly 800,000 people could lose phone service on December 1. On that day, changes in the FCC’s Lifeline program, which provides a modest monthly discount for communications services, mean that voice-only services like a home landline telephone and/or a cellphone will no longer be eligible for the discount.

In less than three months, nearly 800,000 low-income people who receive telephone subsidies through the Universal Service Fund's Lifeline program will be negatively impacted by changes scheduled to go into effect at the Federal Communications Commission on December 1, 2021. The FCC needs to change course and help more Americans keep connected to communications services that are essential to navigate the ongoing public health and economic crisis. Most importantly, the FCC should act swiftly and hit the pause button on the 2016 plan to zero-out support for voice-only services.