Moving toward a continuum model of broadband affordability for low-income households

In the United States, millions of Americans lack a broadband connection at home due to the high cost and unaffordability of services. In 2021, Congress allocated nearly $65 billion for broadband programs through the Infrastructure Investment and Jobs Act. A large portion of these funds were allocated for the Broadband, Equity, Access, & Deployment and Digital Equity Act programs, which allocated funds to states for deploying infrastructure, promoting broadband adoption, and developing programs to develop digital skills. A key element of BEAD was the requirement that states develop affordability programs for both low- and middle-income households. Unfortunately, both the Affordable Connectivity Program and DEA programs have been cancelled, and significant regulatory changes appear imminent for BEAD, leaving the issue of affordability up to individual service providers and older federal programs such as Lifeline, which offers a discount on broadband services for qualifying households. Some U.S. states have begun to pass legislation specific to affordable broadband services; however, only one state has done so to date. To provide guidance on affordability, this paper aims to review historical efforts to make broadband affordable and discuss how affordability can be evaluated moving forward. This discussion includes consumers’ perspectives on affordable broadband and benchmarks for assessing affordability from other utilities.