"Coloradans should have equal access to affordable, fast and reliable broadband service."

—Colorado Broadband Office

In 2022, the Colorado Broadband Office (CBO) commissioned a survey of 2,000+ Coloradans, 18+ agencies, 200+ local governments, nonprofits, and organizations serving marginalized populations to assess the current state of broadband in Colorado. At the time, only approximately 76 percent of households in Colorado subscribed to broadband despite over 90 percent having access. CBO determined that lack of physical access to broadband infrastructure accounted for 56 percent of those who had not adopted the internet, while 38 percent of residents without at-home broadband reported cost as the main reason.

In its proposal for spending Broadband, Equity, Access and Deployment (BEAD) Program support, Colorado adopted a goal of improving adoption by expanding digital inclusion and adoption to achieve affordability, access and digital literacy by 2027. CBO sought to achieve this goal by promoting programs that make high-speed internet more affordable. CBO also committed to the following broadband affordability activities:

• Increase Affordable Connectivity Program (ACP) (or its successor program) uptake through outreach, education, support, and incentivizing participation among eligible subscribers. 
• Prioritize projects that include low-cost high-speed plans by BEAD subrecipients.
• Consider competitive dynamics that fund greenfield expansion to reduce the price of the internet through market pressures.
• Consider affordability as a BEAD subgrantee criteria and prioritize funding based on monthly rates in targeted areas.

CBO planned on measuring progress by tracking the number of Coloradans enrolled in ACP (before the program ended). 

Colorado's Low-Cost Broadband Service Option for BEAD-Supported Networks

Economic hardship in communities is a reality across Colorado and can disrupt various aspects of everyday life, including the ability to engage fully in contemporary society. To effectively respond to the needs of its low-income residents, CBO will use the same ACP qualification criteria to determine eligible low-cost plan customers of BEAD recipients.

All recipients of BEAD funds for broadband infrastructure deployment projects are obligated to offer a low-cost broadband service to all ACP-eligible customers throughout the BEAD-funded network's lifespan. Even though the ACP program is no longer offered by the federal government, the same ACP qualification criteria will be used to determine eligible low-cost plan customers of BEAD recipients. Applicants are required to ensure that customers are well-informed about this option and face no excessive difficulties in choosing it. Applicants are also required to outline their marketing approach for this option in their proposals, which CBO will evaluate and provide feedback on.

CBO's low-cost broadband service option mirror's a model suggested by the National Telecommunications and Information Administration:

• Provides the greater of (a) typical download speeds of at least 100 Megabits per second (Mbps) and typical upload speeds of at least 20 Mbps, or the fastest speeds the infrastructure is capable of if less than 100 Mbps/20 Mbps or (b) the performance benchmark for fixed terrestrial broadband service established by the Federal Communications Commission. [In the event the provider later offers a low-cost plan with higher speeds downstream and/or upstream, permits eligible subscribers that are subscribed to a low-cost broadband service option to upgrade to the new low-cost offering at no cost.]

• Provides typical latency measurements of no more than 100 milliseconds.

• Is not subject to data caps, surcharges, or usage-based throttling, and is subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the participating subgrantee must adhere.

• Costs $30 per month or less, inclusive of all taxes, fees, and charges.¹ [If there are providers who offer a monthly plan that is lower than $30 per month, they are required to offer the lower cost plan.]

• Allows the end user to automatically apply the Affordable Connectivity Program (or a subsequent program) benefit subsidy to the service price. 

BEAD applicants in Colorado seeking to raise the low-cost amount to $50 per month must apply for a waiver from the CBO. Each waiver request will be individually evaluated, and the CBO retains the authority to decline any waiver that does not clearly demonstrate the necessity of increasing the service cost from $30 to $50. The criteria for approval are:

• Justification for the Waiver—Clearly articulate the specific reasons for requesting a waiver and explain the necessity or benefit of granting the waiver.
• Legal and Regulatory Compliance—Ensure that the request aligns with applicable laws, regulations and policies.
• Demonstrated Need—Provide evidence of a genuine need for the waiver, such as data, research, or assessments that support the request.
• Public Interest and Benefit—Describe the public interest or community benefit that will result from granting the waiver. Explain how the waiver aligns with broader policy goals or societal needs.
• Cost-Benefit Analysis—Conduct a cost-benefit analysis to demonstrate that the benefits of granting the waiver outweigh any potential drawbacks.

Colorado's Plan for BEAD Middle Class Affordability

CBO prioritizes enhancing the affordability of broadband services provided by BEAD-funded networks for middle-class households. Colorado’s primary approach to improving middle-class affordability is the implementation of a highly competitive subgrant program. CBO's BEAD program will create opportunities for providers to access the BEAD funding allocation to deploy new, high-quality networks that support reasonable pricing.

CBO's approach aims to enhance the competitive landscape of the broadband market in Colorado. CBO will include the following policy elements and design features intended to further this overarching objective:

• Promote structural competition such as eliminating barriers to entry, opening access to multi-dwelling units, promoting open-access, middle-mile networks, or promoting alternative technologies.
• Promoting consumer pricing benchmarks that provide consumers an objective criterion to use in determining whether the rate offerings of broadband service providers are reasonable and to encourage providers to adopt affordable pricing.
• Establishing a regime of continued monitoring and public reporting to ensure that high-speed internet connections are affordable for middle-class households in their territory.

Affordability and BEAD Applications

Affordability is a central element of the scoring criteria to assess proposals for providing reliable broadband service under the BEAD program. These criteria ensure that commitments to lower prices receive higher scores. At the same time, they provide flexibility for prospective BEAD subgrantees to make business decisions that balance trade-offs between BEAD funds requested, pricing commitments, and the quality of the networks deployed.

When considering BEAD applications, CBO will assess applicants' commitment to delivering 1 Gbps symmetrical services within the project areas specified in the application, at a price that is affordable for subscribers. Applicants will receive more favorable reviews if the cost of a gigabit symmetrical service package is below $118.24 per month, inclusive of all taxes, fees and charges imposed on the subscriber. BEAD subgrantees must commit to offering such an affordable rate, adjusted annually, for the duration of the project.

Notes

1. This section has been updated. The CBO requires a $30 low-cost broadband service option, subject to a waiver request “not to exceed $50.” As instructed by the NTIA, the State should not discriminate between Tribal and non-Tribal projects for low-cost broadband service option requirements. As such, the $30 requirement, subject to a waiver request not to exceed $50, will be implemented across all projects. 

Additional Coverage on Colorado Broadband Priorities

• Coloradans at the Heart of State's Digital Access Plan
• A Colorado for All Requires Broadband Investment

See the latest Colorado 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 Connection Between Affordability and Internet Adoption in Oregon
• How Maryland is Working to Make Broadband More Affordable
• Arizona Aims to Make the "6th C" More Affordable
• Illinois Committed to Changing the Broadband Affordability Picture
• Broadband Affordability is First and Foremost in Maine
• Universal Access to Affordable, Reliable Broadband in Kentucky
• Hawai'i is Working to Connect All to Affordable Broadband

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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