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.

Aldo Soledad relies on his phone's data plan to take care of his internet needs. When it comes to living without home internet, he isn't alone. Millions of Americans are without broadband, either because of a lack of access or because they can't afford it.

The National Lifeline Association (NaLA) submitted a petition to the Federal Communications Commission requesting that the FCC temporarily waive the Lifeline reimbursement amounts in the Commission’s rules until Congress allocates additional funding for the Affordable Connectivity Program (ACP) or passes broader legislation to reform the Universal Service Fund (USF) and pay for the ACP in an alternative manner.

Connecticut has been building its digital infrastructure to get more households online. Those efforts rely on federal funding to help the state address these gaps, particularly in places with limited access to affordable high-speed internet. But a federal program reducing monthly internet bills and providing device subsidies for lower-income households will sunset at the end of April if Congress does not renew funding.

The projected end of the federal government's ACP (Affordable Connectivity Program) will leave many low–income households looking for affordable internet options. Nearly 23 million people nationwide rely on the $30 subsidy ($75 for tribal land) to defray the cost of internet service or secure internet service for free.