When it comes to expanding broadband connectivity, policymakers face two major challenges: 1) ensuring that all US residents have access to high-speed fixed broadband connectivity (“availability”), and 2) ensuring that as many US residents as possible subscribe to fixed broadband (“adoption”). In other words, policymakers are tasked with making sure fixed broadband is both universally available and universally adopted. This handbook offers key principles and best practices that state and local governments should follow in structuring their digital equity plans and establishing and supporting digital equity programs. Available evidence shows that the broadband adoption gap is far greater than the broadband availability gap. While the broadband availability gap is closing, the adoption gap persists. Approximately 5% of US residents lack access to 25/3 Mbps broadband, and approximately 10% of US residents lack access to 100/20 Mbps broadband. By comparison, approximately 23% of US residents do not subscribe to broadband at home. We recommend leveraging broadband funding principles and following actionable best practices to get the most out of every available dollar. Program administrators will need to understand, at a granular level, which locations lack access to broadband, who is not subscribing to home broadband, and why non-adopting communities and individuals remain unconnected. In fact, for maximum success, programmatic interventions will need to be individualized, targeting broadband and technology non-adopters on a one-to-one (or door-to-door) basis. This can be done, and it is being done cost-effectively in communities large and small, urban and rural.

US cable's big wireless gains in 2022 and expected to continue paired with a broader deceleration across the wireless industry will make it difficult for mobile's "Big Three"—AT&T, T-Mobile, and Verizon—to beat and raise their subscriber targets. "The twin headwinds of decelerating industry growth and share loss to Cable are not sufficiently reflected in industry and company expectations, in our view," said MoffettNathanson Analyst Craig Moffett. US cable raked in more than 40% of wireless industry net adds in 2022. Growth for the Big Three mobile carriers slowed in 2022, ending with a 2.1% year-over-year growth rate. When accounting for 3G displacements, growth dipped to just 1.3%. 

To Members of the 118th Congress, as you begin work on the many important issues facing our nation, NTCA–The Rural Broadband Association (“NTCA”) hopes that you will see broadband access as a key component to enhancing and sustaining our nation’s economic and civic well-being. We offer here a policy blueprint for achieving and sustaining universal broadband access in rural America. These four overarching areas of focus – which arise out of decades of real-world experience in serving deeply rural areas, low-income consumers, and community schools and libraries and in working with various governmental connectivity initiatives – represent a proven and effective roadmap for ensuring that every American, regardless of circumstance, can get and stay connected.

• Direct the Federal Communications Commission to ensure sustainable and affordable connectivity by implementing key Universal Service Fund (USF) enhancements currently under consideration, continuing to support the Affordable Connectivity Program and Lifeline efforts and updating the USF contribution mechanism so all that use or benefit from improved nationwide broadband access and affordability support this goal.
• Ensure effective and efficient use of broadband infrastructure funding by not taking any shortcuts in mapping, addressing concerns about coordination among programs, leveraging proven technologies and providers and relaxing strict Build American/Buy American and other procurement and wage-related provisions that do not reflect the marketplace in rural areas.
• Align tax policies with goals for broadband investment by passing the Broadband Grant Tax Treatment Act to ensure broadband infrastructure funding is not considered taxable income and sustaining favorable tax treatment for accelerated or “bonus” depreciation.
• Target right-sized regulation to where it is needed by promoting collaborative approaches to privacy and cybersecurity, removing undue burdens on smaller businesses such as the extension of Sarbanes-Oxley reporting requirements, and easing delays of a year or more in obtaining necessary permission for construction of broadband infrastructure.