The relationship between broadband and other priorities for Utahns—such as employment, education, health, civic engagement, technology innovation, and entrepreneurship—is undeniably important and will only become increasingly so. Broadband infrastructure deployment and adoption are key components for accomplishing economic growth, accelerating educational innovation, expanding access to health care, and increasing personal connection. The State of Utah wants to ensure every resident has access to reliable and affordable broadband internet to enhance their quality of life. Utah's goal is to strategically use Broadband Equity, Access, and Deployment (BEAD) Program funds in conjunction with other state, federal, educational, or non-profit programs to take advantage of a once-in-a-lifetime opportunity to narrow and close the digital divides in the state.

According to the Federal Communications Commission's National Broadband Map, there are still approximately 41,559 unserved locations (with available speeds less than 25 Mbps download/3 Mbps upload) and 28,108 underserved locations (with available speeds less than 100 Mbps download/20 Mbps upload) throughout Utah as of October 24, 2023. These unserved locations are primarily rural and, the Utah Broadband Center posits, are arguably the most expensive to build and maintain.

One key reason for Utahns not subscribing to broadband service is affordability. A Utah Broadband Center survey found that 41 percent of respondents without an internet connection indicated that the cost of monthly internet services was a barrier to accessing the internet.  While Utah is a state with many economic opportunities and well-paying jobs, there are still significant segments of the population that cannot afford broadband service. According to the U.S. Census Bureau, in 2021, 8.6 percent of Utahns were at or below the federal poverty level. 

The Utah Broadband Center identified the FCC's Affordable Connectivity Program (ACP) as the "single most impactful affordability asset currently available to Utahns" while the discount was still active, even though there was significant room for improvement in Utah’s ACP enrollment rates. Through discussions in community workshops, the Utah Broadband Center found that more awareness-building efforts were needed and concluded that the biggest barrier to affordability was the low number of eligible Utahns participating in the ACP. 

In its digital equity plan, Utah articulated the goal of Connectivity for Everyone. Defining true affordability and ensuring that every Utahn has access to affordable internet plans is a cornerstone of Utah’s digital equity plan. This goal underpins BEAD’s emphasis on affordability and will be instrumental in increasing the adoption of broadband services, especially among vulnerable populations.

Utah's BEAD Low-Cost Broadband Service Option

The Utah Broadband Center seeks to balance the higher costs associated with deploying broadband to remote rural areas with the importance of low-cost service offerings for qualifying households to encourage adoption of broadband service across the state.

According to the FCC’s benchmark for affordable broadband, broadband service can be considered affordable when it costs no more than two percent of monthly disposable income. In 2022, the annual per capita disposable personal income for Utah was $49,632. Two percent of this amount would put the monthly service subscription rate at $82.72 per month. For low-income households, defined in accordance with the former ACP eligibility guideline of 200 percent of the federal poverty level, the disposable income rates (and therefore monthly service subscription rates) are lower. 

In Utah, the average household size is 2.99. Two hundred percent of the federal poverty guidelines for a household of three is $51,640 per year. Based on Utah’s flat rate 4.65 percent state income tax and assuming a federal income tax rate of $6,363 for a married filing jointly return at this income level, the estimated disposable income for low-income households is $43,483.74. Two percent of this amount is $72.47 per month.

Based on research of subscriber’s fees and prevailing subscription fees in Utah, UBC has found that the majority of ISPs operating in the state offer low-cost service at rates below $82.72/month and even below $72.47/month. The average recurring monthly fees for 100/20 service are $60/month.

The Utah Broadband Center surveyed all ISPs serving the state and their most common answer was, "We believe a $60/month option would be an affordable low-cost option in rural Utah."

The Utah Broadband Center expects BEAD-funded projects to offer low-cost service options and all subgrantees will be required to provide a low-cost service plan. The maximum monthly recurrent charges to end-users inclusive of all taxes and fees and before applying any subsidies for the low-cost service option must be no more than $60 per month in rural areas and on Tribal Lands, and less than $30 in urban areas (or any area not defined as rural) for eligible households that would have qualified for ACP (or its successor program, if one is established). This low-cost service must offer no less than 100/20 Mbps, latency no greater than 100 ms, and no data cap.

Utah's BEAD Middle-Class Affordability Plans

To encourage economic growth and prosperity while providing another competitive layer to the BEAD grant process, the Utah Broadband Center will award additional points to proposed projects that offer lower monthly cost options. The points assigned to affordability in the BEAD scoring criteria are a means to ensure high-quality broadband services will be made available to all middle-class families in the BEAD-funded network’s service area at reasonable prices and encourage all service providers, the Utah Broadband Center believes, to competitively provide similar or better rates to their non-BEAD-funded areas.

Affordability will form 15 percent of the total available scoring to prospective BEAD subgrantees. Researching various providers’ websites serving Utah in both rural and urban areas, the Utah Broadband Center found that many provided gigabit symmetrical service for $70 per month and has based the incentive on this benchmark.

For each BEAD Project Funding Area, and based on the FCC’s national urban benchmark for 1Gbps/500Mbps, each applicant offering symmetrical gigabit service for $70 or less per month—inclusive of all taxes, fees, and charges billed to the customer—will receive the full 15 percent scoring, while other applications will receive a percentage of points up to the urban benchmark of $142.75 reflective of the distance from the target price of $70 or less.

The Utah Broadband Center's affordability strategy includes:

• BEAD subgrantee application evaluation scoring criteria for open access in unserved communities where no less than 80 percent of the project area is unserved.
• BEAD subgrantee selection scoring criteria for incentivized service plan.
• Encourage subgrantees to provide the same middle-class affordability price tiers to all of its service areas within the state of Utah.

Utah's recommended service plan must meet, at a minimum, the following criteria:

• Total package costs $70 per month or less, inclusive of all taxes, fees, and charges billed to the customer, for 1 Gbps service that consistently, verifiably, and reliably provides 1 Gbps download and upload speeds
• Total package costs $30 per month or less in urban areas and $60 or less in areas defined as rural, inclusive of all taxes, fees, and charges billed to the customer, for 100/20 Mbps service that consistently, verifiably, and reliably provides 100 Mbps download and 20 Mbps upload speeds
• Must provide service installation within 10 business days of service request. Waivers for high-cost, remote, seasonal homes will be considered. In areas where no technology other than LEO satellites are available or economically feasible, the monthly fee will be no more than $110/month
• Provides latency measurements of no more than 100 milliseconds
• Is not subject to data caps, surcharges, or usage-based throttling, and is subject to the same acceptable use policies offered to other home subscribers of other internet access service plans
• Enforceable commitment to not raise the $60 per month for the 100/20 Mbps service for five years from the infrastructure deployment date AND enforceable commitment not to raise the Middle Class Affordability offering for the 1 Gbps symmetrical service for five years from the infrastructure deployment date.

The Utah Broadband Center also recommends:

• Service outage credits, measured at 1/30 of the monthly rate per day for an outage of over 12 hours.
• Waivers of installation charges for any service installation that exceeds the 10-business day commitment.
• Ensuring the plan is well-marketed, publicly available, and easily accessible.

Ongoing Affordability Efforts and Open Access Networks

Affordability of broadband services is a priority for the Utah Broadband Center to fully ensure universal accessibility in addition to universal service for all Utahns. The UBC has established an office of Digital Access to collaborate with stakeholders to strategize ways to overcome barriers to access including affordable service plans. In conjunction with the members of the Utah Broadband Alliance, UBC seeks collaboration regarding ways to ensure universal access. 

Utah has more than one successful model of open access that many cities have utilized to bring access and affordability to their citizens. The Utah Broadband Center supports and encourages this model, but also understands the model will not work in all communities due to remoteness, density, or other factors. One point for open access will be given to BEAD applicants who can provide a strong model and show community support for it.

Additional Coverage on Utah Broadband Priorities

• Achieving Digital Independence in Utah
• The Single Most Impactful Affordability Asset Currently Available to Utahns is the ACP
• The Capital Projects Fund Helps Utah Bridge Broadband Access Gap

See the latest Utah broadband news

More in this Series

• Louisiana's Plan for Affordable Broadband
• Pennsylvania's Plan for Affordable Broadband
• Washington State's Plan for Affordable Broadband
• The Kansas Affordability Plan
• Affordable Broadband for Nevada
• Will BEAD Networks Deliver Affordable Broadband for All in West Virginia?
• Delaware Wants to be the First State to Achieve Universal Broadband—Affordability is a Key Component
• Eliminating the Digital Divide in the District of Columbia Requires a Focus on Affordability
• A Plan to Bridge the Digital Divide in Colorado
• Ensuring All Hoosiers Have Reliable and Affordable Broadband
• Increasing Broadband Availability, Accessibility, and Affordability for the Benefit of All Utahns

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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Broadband Delivers Opportunities and Strengthens Communities