Affordable Broadband is the Way to Improve Lives and Grow the Economy in Nebraska
Friday, October 11, 2024
Weekly Digest
Affordable Broadband is the Way to Improve Lives and Grow the Economy in Nebraska
You’re reading the Benton Institute for Broadband & Society’s Weekly Digest, a recap of the biggest (or most overlooked) broadband stories of the week. The digest is delivered via e-mail each Friday.
Round-Up for the Week of October 7-11, 2024
Nebraska is aiming to connect 99 percent of homes and businesses with reliable and affordable high-speed internet access by 2027.
Based on June 2023 data, 12-15 percent of Nebraska’s locations are unserved or underserved, and approximately 105,000 households lack acceptable access to the internet. An unfavorable business case for investment, especially in rural areas, has resulted in limited access. Major factors in the adoption gap are affordability, devices, and literacy.
Nebraska's vision for digital equity is for Nebraskans to effectively use broadband to improve their lives and grow the economy. This means that all Nebraskans have access to high quality broadband service at prices that are affordable, and that everyone has the skills to use the service. But availability and affordability of broadband service were the two issues identified most frequently by participants in listening sessions across the state.
Rural residents and people living in urban areas with high percentages of low-income households have the lowest rates of broadband access at home. Over one-third of Nebraskans live in rural areas. Members of households with annual incomes at 150 percent or less of the federal poverty level make up just over 18 percent of Nebraska’s population.
Through the Broadband Equity, Access, and Deployment (BEAD) Program, Nebraska will receive $405 million to ensure every farm, home, and business in the state has access to high-speed internet. The Nebraska Broadband Office (NBO) within the Nebraska Department of Transportation (NDOT) is partnering with the state's eight economic development districts to design an equitable plan to bring reliable, affordable broadband to most of the population as soon as 2027.
In addition to having broadband access available, NBO recognizes that Nebraskans should be empowered with sufficient capabilities, should be able to afford broadband, and should be provided access to opportunities to develop digital literacy skills. By ensuring that Nebraskans have access to affordable, quality broadband, an appropriate device, and the skills to use technologies at home, in school, on the farm or ranch, in businesses, in health care, and in government, Nebraska will grow its economy and improve the lives of all Nebraskans.
The BEAD Low-Cost Broadband Service Option in Nebraska
The cost of broadband remains high for some, especially if they reside in a rural part of the state or only have one or two providers to choose from.
NBO will require that all BEAD applicants offer plans to eligible households that provide typical speeds of at least 100 Mbps downstream, at least 20 Mbps upstream, and latency measurements of no more than 100 milliseconds.
The annual rate for the low-cost affordable plan offered by providers must be one percent of 200 percent of the total four-member household income of the Federal Poverty Guidelines in 2023, inclusive of all taxes, fees, and charges. This equates to $600 a year or $50 a month. The proposed low-cost plan may not be subject to data caps, surcharges, usage-based throttling, service installation fees, activation fees, equipment purchase fees, or any other recurring or non-recuring fees that add to a customer's rate.
If, after the establishment of its low-cost plan, the provider offers another low-cost plan with higher speeds, the provider will be required to permit its existing low-cost subscribers to upgrade to the new low-cost plan at no additional cost.
For all BEAD applicants, NBO will require submission of a low-cost plan and score the proposed affordable plan.
Consumer eligibility for these plans was to be tied to ACP enrollment. For now, the following households will be eligible for the low-cost service option in Nebraska:
- Annual incomes at or below 200 percent of the Federal Poverty Guidelines,
- Receiving a Federal Pell Grant during the current award year,
- Meeting the eligibility criteria for a participating provider's existing low-income internet program,
- Participation in one of these assistance programs:
- Free and Reduced-Price School Lunch Program or School Breakfast Program, including at U.S. Department of Agriculture (USDA) Community Eligibility Provision schools,
- SNAP,
- Medicaid,
- Federal Housing Assistance, including Housing Choice Voucher (HCV) Program (Section 8 Vouchers), Project-Based Rental Assistance (PBRA/Section 202/ Section 811), Public Housing, Affordable Housing Programs for American Indians, Alaska Natives or Native Hawaiians,
- Supplemental Security Income (SSI),
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC),
- Veterans Pension or Survivor Benefits,
- Lifeline,
- Bureau of Indian Affairs General Assistance,
- Tribal Temporary Assistance for Needy Families (TANF),
- Food Distribution Program on Indian Reservations,
- Tribal Head Start
The Low-Cost Plan and ACP
As of March 2024, nearly 89,000 out of 284,439 eligible households (31%) in Nebraska had enrolled in the Federal Communications Commission's Affordable Connectivity Program (ACP). Nebraska has 116 ISP providers that participated in ACP with 70 providing fixed-broadband services and 42 offering connected devices (laptop, desktop or tablet). Due to a lack of funding, ACP ended in May 2024.
NBO planned to require all BEAD-supported providers in the state to allow subscribers to apply ACP benefits (or any State or Federal successor plan) toward the low-cost plan. All providers were to be encouraged to place links to information about the ACP in conspicuous locations on their websites.
Nebraska adopted an extensive strategy for increasing ACP enrollment including outreach and education, partnering with community organizations, streamlining the application process, target communications, community workshops and trainings, helping enrollees picking ISPs, ongoing support and troubleshooting, monitoring enrollment, and program evaluation.
Nebraska expected to increase ACP usage among eligible low-income families, bridging the digital divide and enabling greater access to the internet for educational, employment, and other essential needs.
BEAD Middle-Class Affordability Plans in Nebraska
The median household income in Nebraska in 2023 was $66,644.
NBO reviewed existing price plans for 100 Mbps offerings on Nebraska provider websites as well as data from the FCC Urban Rate Survey from 2021, 2022, and 2023. Based on this market analysis, NBO is documenting the current median rate at two percent of the median household income in Nebraska in 2023 for a 100 Mbps symmetrical service plan. This equates to $1,332.88 a year or $111.07 a month. NBO encourages broadband providers to continue to strive to offer broadband service in this area of pricing.
The Middle-Class Affordability Plan will be scored as part of the BEAD application process in Nebraska. A proposed plan must provide typical speeds of at least 100 Mbps downstream, at least 20 Mbps upstream, and latency measurements of no more than 100 milliseconds. The plan must not be subject to data caps, surcharges, or usage-based throttling and must be subject to the same acceptable use policies as all other subscribers to broadband services offered by the provider. NBO will require all providers to offer the middle-class plan across the BEAD-funded network but encourages providers to offer the plan to all customers. NBO understands the difference between business and residential plans for providers, and, as a result, the middle-class affordability plan is intended for residential customers. All BEAD-supported providers should promote the availability of middle-class affordability plans on their websites and through other promotional avenues.
Investing in Digital Equity
Connecting all Nebraskan households to high-speed internet access requires investment in digital equity. Nebraska’s digital equity efforts are focusing on affordable access to service, access to internet-enabled devices, and digital literacy. The Nebraska State Digital Equity Plan will support the digital equity strategies of the Nebraska Strategic Broadband Plan and provide more detail.
Nebraska also plans to improve public internet access in Nebraska communities. The state plans to work with libraries and other stakeholders, for example, to increase the number of libraries with fiber broadband connections by taking advantage of E-Rate funding available through the Federal Communications Commission.
Additional Coverage on Nebraska's Broadband Priorities
- Creating Digital Opportunities in Nebraska
- Nebraska's Digital Equity Plan
- Capital Projects Fund Helps Build Nebraska's Broadband Bridge
- Connecting Nebraska—Five-Year Action Plan
- Nebraska Broadband Office Initial Proposal Volume 1 and Volume 2
See the latest Nebraska broadband news
Quick Bits
- Every State Identifies Broadband Affordability as Primary Barrier to Closing Digital Divide
- How ACP's lapse is impacting state broadband plans
- NTIA Receives More Than 700 Applications Seeking Over $6.5 Billion for Digital Equity Projects
- Practical Advice and Lessons Learned from the National Digital Navigator Corps
- SpaceX Wields Power Over Satellite Rivals to Boost Starlink
Weekend Reads
- Building Infrastructure for a Better-Connected World
- Leading Connectivity: Two Years of the Broadband Infrastructure Program
- A Preliminary Evaluation of the ACP Program
- Predicting Uptake Rates for the Affordable Connectivity Program
ICYMI from Benton
- Building Safety Into Digital Inclusion Efforts: Risks and Opportunities in the Digital Equity Act
- Permitting Success: Closing the Digital Divide Through Local Broadband Permitting
- Leaving Money on the Table: The ACP’s Expiration Means Billions in Lost Savings
- Neighborly Networks: Vermont’s Approach to Community Broadband
- Could It Be Me? Should It Be Me? Understanding What Makes Broadband Champions
- From Fear to Confidence
Upcoming Events
Oct 14-15—Michigan Broadband Summit (Merit)
Oct 15—2024 Maryland Statewide Digital Equity Summit (University of Maryland Extension)
Oct 15—Task Force For Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States (FCC)
Oct 15—Building Bridges For BEAD: A Community & ISP Networking Expo (Michigan High-Speed Internet Office)
Oct 16—Getting Connected: Closing the Broadband Access Gap in the US (Federal Reserve Bank of Cleveland)
Oct 17—October 2024 Open Federal Communications Commission Meeting (FCC)
Oct 17—Advancing Community Broadband (University of Illinois Urbana-Champaign)
Oct 18—Disability Advisory Committee Meeting (FCC)
Oct 22—The Google Search Antitrust Case—Finding a Remedy that Helps Consumers (Technology Policy Institute)
Oct 24—Broadband Data Collection Mobile Challenge Webinar (FCC)
Oct 24—The Conservative Weaponization of Government Against Tech (ITIF)
Oct 24—Digital Equity Solutions for Tribal Nations (NTIA)
Oct 24—Could a right to remote work stop declining birth rates? (Brookings)
Oct 25—The Attention Economy: Monopolizing Kids’ Time Online (FTC)
The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.
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