Affordability/Cost/Price

The 10^th Anniversary of the National Broadband Plan offers a chance to reflect on the progress made in the past 10 years and lessons for the future. My focus will be on the progress in addressing the digital divide – increasing the number of Americans with broadband at home. The National Broadband Plan’s guiding principles for broadband adoption still resonate:

It's budget season. Federal departments and agencies are making their funding requests to Congress for fiscal year 2021 (starting October 1, 2020 and ending September 30, 2021). And part of the ask is reporting how well an agency did achieving its FY 2019 goals. One of the primary goals of the Federal Communications Commission is to close the digital divide in rural America.

The House Commerce Committee's Subcommittee on Communications and Technology held a hearing entitled Empowering and Connecting Communities Through Digital Equity and Internet Adoption.

Current research suggests that low-income people can only afford to pay about $10  monthly for broadband. Anything more competes with other utility bills and the cost of food. Meeting the goal of universal connectivity and providing fixed broadband at about $10 per month requires a multi-pronged strategy - what my Benton colleague Jonathan Sallet calls an “Affordability Agenda.” It includes:

In Washington, DC, today, policymakers, public interest advocates and nonprofits, researchers, and the business community are gathering for the 2020 State of the Net Conference. Hosted by the Internet Education Foundation, State of the Net explores important, emerging trends and their impact on internet policy.

Cost is the primary reason that people do not subscribe to broadband. Current research suggests that low-income people can only afford to pay about $10 per month for broadband. One set of participants told researchers that affording $20 per month would be difficult; even at $10-15/month, low-income households are making tough decisions about paying for internet access vs utility bills (such as phone and electricity) and even the cost of food. To meet the challenge of providing fixed broadband at roughly $10 per month requires implementation of a variety of strategies.

New Democrat Coalition Rep Angie Craig (D-MN) and Freshman Leadership Representative Nikki Budzinski (D-IL) led 95 New Democrat Coalition Members in a letter to House Speaker Mike Johnson (R-LA) calling on House Republican Leadership to take immediate bipartisan action to fund the Affordable Connectivity Program (ACP).

A lot of folks have been pleading with the Federal Communications Commission to pick up the tab to continue the Affordable Connectivity Program (ACP). Folks are assuming that the FCC has the ability to take on the ACP program inside the Universal Service Fund.

As the Federal Communications Commission's Affordable Connectivity Program gets set to end at the end of May, at least three internet providers touted alternative low-cost offerings, including some available only to low-income households. During the ACP’s 29-month existence, numerous providers have offered a $30 service for low-income customers so that service is essentially free when the ACP discount is applied, and some of the providers plan to continue to offer the $30 services. With a few exceptions, however, service will no longer be free.

Life Wireless, the Lifeline Assistance Program’s provider for Telrite Holdings, has vowed to continue accepting applications for their Lifeline Assistance Program after the Affordable Connectivity Program (ACP) runs out of funding in May. Life Wireless offers free service, data usage, and smartphones to low-income Americans. Subscribers are eligible for Lifeline Assistance Program help if they receive government assistance or if their income level is at or exceeds 135 percent below the federal poverty level.