Washington State's Plan for Affordable Broadband

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To bridge the digital divide in Washington and strive to meet the state's universal broadband goals, the Washington State Broadband Office (WSBO) recognizes the intrinsic link between affordability and accessibility. The State of Washington is committed to investing in universal broadband access that is affordable, reliable, scalable, and sustainable to support equitable economic development and connect every community throughout the state, enriching the lives of all Washington residents and businesses. A key objective in Washington's Internet for All plan is that every business and household in Washington state should have affordable access to the broadband they need for work, school, healthcare, etc. This includes reducing barriers to access through policy and programs, such as:

• Increasing awareness of benefits and enrollment of eligible households in Lifeline, the Affordable Connectivity Program (ACP), or any successor program.
• Expanding the availability and awareness of non-federally funded subsidy and grant programs to increase the affordability of broadband.

Affordability is part of the scoring criteria WSBO will use to evaluate proposals for Broadband Equity, Access, and Deployment (BEAD) funding.

Washington's Broadband Challenge

Based on 2023 Federal Communications Commission (FCC) data, over 236,000 residential and non-residential locations in Washington state are considered unserved, meaning that either there is no internet or speeds are insufficient to meet the 25/3 Megabits per second (Mbps) download and upload minimum speed or reliability requirements to be considered broadband level internet. Additionally, nearly 80,000 locations were also found to be underserved, which means that they have speeds greater than 25/3 Mbps but less than the 100/20 Mbps speed threshold defined in the Broadband, Equity, Access, and Deployment (BEAD) program requirements. Beyond internet access gaps, there is also an adoption gap with 9 percent of all Washington households that do not have a broadband subscription of any type.

To help address these gaps, Washington state was allocated nearly $1.23 billion in June 2023 from the National Telecommunications and Information Administration (NTIA) through the BEAD Program. While this is a sizeable amount of funding that can help the state make significant progress towards the goal of universal internet access, Washington estimates that it is still likely to be insufficient to deploy broadband infrastructure to every location due to the state's diverse terrain and relatively low-density population outside of major urban centers.

The preliminary cost estimate for universal access is more than $2 billion, leaving a funding gap of nearly $500 million, even after a mandatory 25 percent match from subgrantees. This funding gap will likely increase as it does not include deployment costs specific to high-cost locations which the state can more accurately calculate once the NTIA releases its ‘Extremely High-Cost Threshold Support’ tool.

Building up broadband infrastructure across the state without addressing affordability issues may bring broadband service to some, but will leave behind Washington’s most vulnerable communities, excluding them from the digital economy and society. Many Washingtonians may have broadband service available, but they cannot afford the price of service or devices. 

While some affordability programs exist to reduce the cost of broadband service for low-income households, many Washingtonians are unaware of these resources or may not understand how to apply for them. As of July 2023, 1.125 million Washington households qualified to participate in ACP, but only about 358,000 households were enrolled in the program when it ended in May 2024. 

Washington's Low-Cost Broadband Service Option

The WSBO developed the following low-cost broadband service option. With this affordability guidance in place, the WSBO anticipates increased awareness of and participation in affordability programs, reducing cost barriers of connectivity for the most vulnerable communities and households across Washington state.

The original plan was dependent on federal affordability programs including the ACP and FCC's Lifeline program. Since WSBO put together the plan, funding for the ACP has expired. The Lifeline program continues to provide $9.25/month.

Original Plan

A BEAD subgrantee must offer a service option that meets, at a minimum, the following criteria:

• A service that costs $30 per month or less, including all taxes, fees, and charges billed to the subscriber.
  • The WSBO may adjust the low-cost service option price as needed to match inflation.
  • Subgrantees may only increase the price of the low-cost service option after 12 months
    have passed, and at a rate that does not exceed the Consumer Price Index for All Urban
    Consumers (CPI-U) 12-month percentage point change for the “All Items” category,
    published by the U.S. Bureau of Labor Statistics.
  •  Existing customers must be informed via mail, billing announcement, or email, no later than 30 days before an annual price
    increase.
• Allow end users to apply ACP and Lifeline program benefit subsidies to the service price. [The subgrantee is required to participate in the ACP or any successor broadband subsidy programs. Subgrantees may not impose additional eligibility restrictions beyond those applicable to the ACP.]
• Work to inform prospective customers of the ACP and Lifeline. The subgrantee must also take the necessary steps to enroll and apply the benefit to the low-cost service option.
• Consistently and reliably provide download speeds of at least 100 Mbps and typical upload speeds of at least 20 Mbps. [If the subgrantee later offers a low-cost plan with higher speeds downstream and/or upstream, the subgrantee must permit eligible subscribers subscribed to a low-cost service option to upgrade at little to no extra cost. The subgrantee must also inform subscribers of alternative plan options if they wish to change to another tier of service.]
• No more than 100 milliseconds of typical latency measurements.
• No data caps, surcharges, or usage-based throttling. Low-cost service option subscribers must only be subject 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.

Post-ACP Plan

WSBO wisely planned for the demise of ACP. Now that ACP has expired, subgrantees must continue to offer a $30 or less low-cost service option to eligible customers within the awarded project areas under the BEAD program. A customer is eligible for the low-cost service option if the household income is at or below 200 percent of the Federal Poverty Guidelines. Customers are also eligible if a member of the household meets at least one of the following criteria:

• Participates in certain assistance programs, such as SNAP, Medicaid, Housing Choice Voucher (HCV) Program (Section 8 Vouchers), Project-Based Rental Assistance (PBRA)/202/811, Public Housing, SSI, WIC, or Lifeline;
• Participates in the Free and Reduced-Price School Lunch Program or School Breakfast Program, including at U.S. Department of Agriculture (USDA) Community Eligibility Provision schools.
• Received a Federal Pell Grant during the current award year;
• Participates in tribal-specific programs, such as Bureau of Indian Affairs General Assistance, Tribal TANF, Affordable Housing Programs for American Indians, Alaska Natives or Native Hawaiians, or Food Distribution Program on Indian Reservations; or
• Meets the eligibility criteria for a participating provider's existing low-income internet program.

According to the U.S. Department of Health and Human Services’ Poverty Guidelines, an individual earning $15,060 or less annually is at the federal poverty line. Based on a 2016 benchmark from the Federal Communications Commission, broadband service should not cost more than 2 percent of monthly income. Using the 2 percent threshold, an affordable monthly broadband price would equal $25. Using the Lifeline subsidy of $9.25 per month, the total price for the low-cost service option would equal $21, which is less than the $25 threshold.

The WSBO strongly encourages the low-cost broadband service option to be available to all eligible prospective customers across the subgrantee’s service territory. This service option must be available to locations within the awarded project areas under the BEAD program.

Washington's Middle-Class Affordability Option

In addition to the low-cost broadband service option, WSBO recognizes the importance of providing middle-class families with affordable broadband service. WSBO's intention behind supporting an affordable service option for middle-class households is to help those who may not qualify for programs like the ACP or Lifeline, but for whom internet affordability is still a concern.

Offering middle-class households affordable, high-quality broadband service is a priority for the WSBO. To understand the range of middle-class income in Washington, the WSBO looked to research by the Pew Research Center. Pew's analysis defines middle-class as households with annual incomes of two-thirds to twice the median household income. Referencing data from the Washington State Office of Financial Management, the median household income in Washington is $84,155. This establishes the range of middle-class incomes as $56,103 to $168, 310.

WSBO will require BEAD subgrantees to provide a plan for an affordable service option that supports stable and affordable prices to middle-income end-users. The affordable service option plan must include a proposed price threshold, its justification, and basic service features that align with the BEAD program requirements.

WSBO strongly encourages the affordable service option to be available to prospective customers across the subgrantee’s entire service territory. However, this option must be available to locations within the awarded project areas under the BEAD program.

Subgrantees must establish an affordable service option plan that meets, at a minimum, the following criteria:

• Proposes a monthly non-promotional price, including all taxes, fees, and charges billed to the customer or subscribers, and justification for the price.
• Provides consistent and reliable download speeds of at least 100 Mbps and typical upload speeds of at least 20 Mbps.
• 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.
• Only allows prices charged to end users to increase after 12 months have passed, and at a rate that does not exceed the Consumer Price Index for All Urban Consumers (CPI-U) 12-month percentage point change for the “All Items” category, published by the U.S. Bureau of Labor Statistics. Existing customers must be informed via mail, billing announcement, or email, no later than 30 days before an annual price increase.

WSBO strongly encourages subgrantees to inform all prospective customers of the affordable service option and provide access to publicly available information for the affordable service option on subgrantee websites.

SBO will annually publish consumer pricing benchmarks and income-focused data analysis so that consumers can comparison shop for service options.

In addition to regular benchmarking, the WSBO will establish monitoring and public reporting metrics to maintain high-speed internet affordability for middle-income households. To support data accuracy, the WSBO will require that participants annually report service tiers and pricing for project areas to certify that affordable service options are being offered.

Additional Coverage on Washington's Broadband Priorities

• Washington is Teaming Up for Better Broadband

• Washington State Sets Digital Equity Goals

See the latest Washington 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

Quick Bits

• Surgeon General: Why I’m Calling for a Warning Label on Social Media Platforms (New York Times)
• Kentucky and Maine’s “Internet for All” Initial Proposals Approved (NTIA)

Weekend Reads

• Computer and Internet Use in the United States: 2021 (US Census Bureau)

ICYMI from Benton

• Neighborly Networks: Vermont’s Approach to Community Broadband
• A New Vision For “Open-Access” Networks as Operating Systems for Cities
• FCC Will Launch Cybersecurity Pilot Program for Schools and Libraries

Upcoming Events

Jun 25––Arkansas BEAD Digital Opportunity Conference (Arkansas State Broadband Office)

Jun 25––5x5 Summit: The Public Safety Innovation Summit (Department of Commerce)

Jun 25––Navigating Broadband for Communities with Differing Resources and Capacity (Appalachian Regional Commission)

Jun 26––Consumer Advisory Committee Meeting (FCC)

Jun 27––Building Great Digital Equity Programs using the Digital Navigator Model (Appalachian Regional Commission)

Jun 27––Digital Equity for Small and Rural Communities (NTIA)

Jun 27––Power of Partnership: State Strategies for Digital and Educational Equity (Benton Institute for Broadband & Society)

Jul 2––Filling in the Holes after BEAD (Appalachian Regional Commission)

Jul 10––Power of Partnership: State Strategies for Digital and Educational Equity (Benton Institute for Broadband & Society)

Jul 18––July 2024 Open Federal Communications Commission Meeting (FCC)

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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