John Horrigan
A Better Way to Fund USF
There is a political consensus that the United States should continue its nearly century long commitment to assuring that the tools of modern communications are universally accessible and affordable. There is also a consensus that the primary program through which we keep that commitment—the Federal Communications Commission’s Universal Service Fund (USF)—is breaking down.
Moving Toward a Continuum Model for Broadband Affordability
The availability of reliable, high-speed internet throughout the United States has been a focus of policymakers for decades, with the need for an expansive broadband infrastructure listed as “the great infrastructure challenge” of the 21st century by the Federal Communication Commission. However, federal guidelines have never set a benchmark for what “reasonable prices” might mean for residents in each state, and there are no established benchmarks for determining what an affordable level of broadband service would look like throughout the country.
Broadband Affordability is an Ongoing Challenge for Low-Income Households
A new survey from the Benton Institute for Broadband & Society focusing on low-income Americans shows that affordability challenges are pervasive for low-income households, a problem the Affordable Connectivity Program (ACP) helped alleviate for those most in need. The survey finds that:
Findings from a representative sample of 2,535 households whose annual incomes are $50,000 or less.
How the End of the Affordable Connectivity Program is Hurting Low-Income Households and the U.S. Economy
A forthcoming report from the Benton Institute on Broadband & Society examines the impact of the demise of the Affordable Connectivity Program (ACP) on low-income Americans and the affordability of home broadband service. The main findings from the survey are:
Understanding uptake in demand-side broadband subsidy programs: The affordable connectivity program case
This paper hypothesizes that Affordable Connectivity Program (ACP) enrollment decisions are not solely individual, but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above.
Updated ACP Enrollment Performance Tool Includes ACP Risk Score
Today we are releasing our latest version of the Affordable Connectivity Program (ACP) Enrollment Performance Tool, which updates data through February 2024. We introduce a new feature in this version—the ACP Risk Score for each zip code included in the tool. This score indicates the degree to which households in a given zip code are at risk of losing or reducing internet connectivity should the ACP benefit lapse.
The Affordable Connectivity Program Creates $16.2 Billion in Annual Benefits to Subscribers
Created by Congress in 2020 and renewed in 2021, the Affordable Connectivity Program (ACP) is helping 23.3 million households afford internet access. But funding for ACP—the largest, most successful internet affordability program in US history—is set to expire on May 30, 2024. This week, President Joe Biden proposed short- and long-term funding solutions in his budget. And a House bill to provide funding through the end of 2024 had 180 cosponsors in the House of Representatives.
This exploration finds that every dollar of ACP subsidy returns nearly two dollars in impacts to those using the program.
Ending the ACP will Limit the Internet’s Economic and Healthcare Benefits for Low-Income Households
What does solving the digital divide look like? The simple answer—getting more people online—is tempting, but it’s just a first step. Focusing only on home adoption rates provides a too limited perspective on the benefits of solving the digital divide. Consistency of connectivity is a key issue for low-income households—and this consistency is an important part of what the Federal Communications Commission’s Affordable Connectivity Plan (ACP) offers. For many households, the digital divide is not a one-time bridge to cross. Instead, online connectivity can be episodic.