Digital Divide

 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.

February 4 was the deadline for written public input on the Infrastructure Investment and Jobs Act broadband programs that the National Telecommunications and Information Administration (NTIA) will administer. Much attention is rightly being paid to the many billions of dollars NTIA will distribute to states in the coming months to ensure broadband networks reach everyone in America. However, there's been less attention given to a provision in the new law creating a new vehicle for broadband deployment: private activity bonds.

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.

On January 11, the U.S. Senate voted 60-31 to confirm the nomination of Alan Davidson to be the Assistant Secretary of Commerce for Communications and Information. Once sworn in, Davidson will lead the National Telecommunications and Information Administration (NTIA), which is President Joe Biden's principal adviser on telecommunications and information policy.

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.

A remarkable wave of public-private collaboration in broadband is underway—a wave that began in the early months of the COVID-19 pandemic and will likely reach a crest in the next few years as many tens of billions of dollars of public and private capital are invested in next-generation broadband. COVID-19 demonstrated to American policymakers the absolute need for plentiful connectivity and the crises faced by those who don’t have it—and simultaneously demonstrated to private investors the economic potential of best-in-class, future-proof broadband.

Since the Emergency Broadband Benefit launched in May 2021, enrollment has grown steadily. By the end of June, 3.1 million households had enrolled, a figure that rose to 7.4 million by the beginning of November. Analysis of the geography of this growth shows that it was not evenly distributed. South Florida, Detroit, Chicago, and New York City have all seen very strong growth in enrollment since June. In the Los Angeles area, more than 100,000 additional households have signed up since then.