Despite clear evidence to the contrary, lobbyists have long claimed that U.S. broadband is extremely competitive and incredibly affordable.
This week, President Joe Biden addressed a joint session of Congress to offer an update on his first 100 days in office and to pitch his proposals for unprecedented public investment in America. A key element of President Biden's plan is a $100 billion investment to ensure everyone in the U.S. has access to affordable broadband internet access service, including $80 billion specifically for broadband infrastructure.
A number of readers have reached out to us at Benton asking for help figuring out where to find all the pools of broadband support appropriated by Congress over the past year. So we've decided to create this placeholder for all the funding we've seen in the CARES Act, the Consolidated Appropriations Act, 2021, and the American Rescue Plan.
With a proposal to spend $100 billion to ensure that all Americans have affordable and reliable internet service, the Biden Administration has made closing the digital divide a huge priority. Much remains to be done to fill in the specifics of what this means, but two types of policy tools come to mind when thinking about how to address the digital divide. Top of mind is promoting competition. Fostering competition means investing in new infrastructure, thereby giving consumers more choice for very high-speed service.
Residential and small-business customers have too few options for fixed, robust broadband service, what we refer to as “High-Performance Broadband.” Solving our deployment and competition problems requires the construction of new broadband networks. In other words, we need more competition, and we need more broadband deployment. Our new policy brief concentrates on one solution—the construction of open-access, middle-mile networks.
In October 2019, the Benton Institute for Broadband & Society issued Broadband for America’s Future: A Vision for the 2020s. The agenda was comprehensive, constructed upon achievements in communities and insights from experts across the nation. The report outlined the key building blocks of broadband policy—deployment, competition, community anchor institutions, and digital equity (including affordability and adoption).
Thirty percent of all Americans live in multi-tenant environments (“MTEs”) like apartment buildings. Their annual income tends to be only about 54% of median homeowner income, so they are at greater risk of not being able to afford broadband. When apartment owners can profit by restricting tenants’ broadband options and reducing competition, it adds to our nation’s broadband affordability challenges.
Broadband competition is more important than ever because – in these crises and beyond – America has fast-forwarded into its broadband future. But broadband competition is limited: At a typical broadband speed of 100/10 Mbps, at least 80% of Americans face either a monopoly (no choice) or a duopoly (only one choice) for fixed service. It’s worse in rural America, where monopoly is even more prevalent. The impact is obvious: higher prices, lower quality and/or slowed innovation limiting the ability of people to participate fully in society and the economy.
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.