West Virginia's plan for Broadband Equity, Access, and Deployment (BEAD) Program funds aims to ensure that every resident has access to reliable, affordable, and high-speed broadband and the ability to use it effectively. 

The cost of high-speed broadband internet service in West Virginia remains a significant barrier to adoption. According to the West Virginia Department of Economic Development's (WVDED) 2023 Five-Year Action Plan, up to 57 percent of West Virginians may find broadband internet access unaffordable. West Virginia’s affordability gap is particularly pronounced in rural areas, where high deployment costs and limited competition have driven prices beyond affordability for the area’s lower-than-average income households. 

The Infrastructure Investment and Jobs Act’s BEAD provisions are premised on Congress’s determination that “[a]ccess to affordable, reliable, high-speed broadband is essential to full participation in modern life in the United States,” and that “[t]he persistent ‘digital divide’ in the United States is a barrier to” the nation’s “economic competitiveness [and the] equitable distribution of essential public services, including health care and education.”

While broadband is a necessary condition to connect all West Virginians, WVDED recognizes that increased broadband infrastructure alone is not sufficient. Digital equity has been a key consideration throughout the broadband planning process to ensure that West Virginians who have been on the wrong side of the digital divide have the tools and support they need to use the internet in a way that allows them to reach their fullest potential. So the state's primary digital equity goal is to "Ensure broadband access is available and affordable for all West Virginians."

WVDED estimates that there were approximately 368,000 West Virginia households eligible for the Federal Communications Commission's Affordable Connectivity Program (ACP) while the benefit was still active.

West Virginia's Low-Cost Broadband Service Option

The Infrastructure Investment and Jobs Act requires that each subgrantee receiving BEAD funding to deploy network infrastructure offer at least one low-cost broadband service option. Each state must consult with the National Telecommunications and Information Administration (NTIA) and prospective subgrantees regarding a proposed definition of the term “low-cost broadband service option.” Each state shall thereafter submit a proposed definition to NTIA for approval. The Infrastructure Investment and Jobs Act directs NTIA to define the subscribers eligible for such low-cost plans.

WVDED selected the following requirements for low-cost broadband plans because, it says, they meet the spirit of the BEAD program while giving providers flexibility to customize them to meet their business needs and potentially use the differences as selling points between providers. 

• The plan must provide the greater of (a) typical download speeds of at least 100 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.
  • If WVDED or any other entity assigned by WVDED tests the end-user speeds of these plans, the requirements will only be met if 80% of tests meet or exceed 80% of the required speeds and 95% of latency measurements must be at or below 100 milliseconds per round trip.
• WVDED will require that subgrantees offer a low-cost broadband service plan to those who would have qualified for the ACP (called "eligible subscribers").
• The cost of the plan must not exceed $50 per month, inclusive of all taxes, fees, and charges. 
  • Applicants are only permitted to increase prices of this plan: a) commensurate to year-over-year changes in the Consumer Price Index for All Urban Consumers: All Items Less Food & Energy (also known as Core CPI) as defined by the U.S. Bureau of Labor Statistics; or b) due to new or increased government-mandated taxes and fees imposed on the consumer, not providers. 
• Each subgrantee will be required to present a proposed low-cost broadband service option plan as a part of their application process.
• Subgrantees will also be required to present their process for marketing this option to potential subscribers.
• Subgrantees will be required to provide metrics related to the uptake of this plan, including, but not limited to, the number of individuals that have subscribed to the plan and the locations of these individuals at a county level. 
• These plans must remain in place for the useful life of the network assets.
• 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.
  • By way of example, if a customer is subscribed to a low-cost broadband service option that provides service at 100/20 Mbps and the customer’s service provider offers a new low-cost broadband service option at 200/20 Mbps, the customer would be allowed to upgrade to the 200/20 Mbps offering at no charge. 
• Applicants should only provide a single low-cost and single middle-class offering (see below) that applies to all its awarded programs under BEAD as opposed to different plans depending on the location of service provided in West Virginia.
• Applicants are encouraged, but not required, to provide these same low-cost plans to their existing broadband deployments not associated with the BEAD program. 

WVDED will consider updating minimum pricing requirements and other conditions of the low-cost service option at least twice within the next ten years after service turn-up based on changes in economic and market conditions. Public comments will be solicited at those times. In the event that WVDED seeks to update the minimum pricing requirements and other considerations of the low-cost service option, WVDED will—at a minimum—consult with NTIA and execute a public notification and participation process. 

Why $50?

To develop a maximum price for the low-cost plan, WVDED performed an informal assessment of available low-cost plans provided by incumbent internet service providers. Many of these providers did not have publicly available prices online and WVDED also recognizes that an exhaustive assessment would require significantly more time and collaboration with providers.

Based on the information collected, WVDED found that many incumbent providers already offer low-cost plans that fall under $50 per month. WVDED found that a required price below this amount, such as the $30 per month provided in NTIA’s example, would potentially reduce the likelihood of a wider range of entities applying to the BEAD program because they may deem it economically unfeasible. WVDED set the maximum low-cost price at $50 per month as this strikes a balance between what is economically feasible for providers of various sizes and how to best support residents of West Virginia. 

Furthermore, WVDED found this price point to be affordable for many ACP-eligible West Virginians. In 2016, the FCC began utilizing a benchmark of 2 percent of disposable monthly household income for broadband affordability while acknowledging the benchmark serves “as a clear yardstick for charting changes, not as an inherently meaningful level.” Though best used for measuring changes, it still provides a starting point for assessing affordability. At the same time, the income guideline for ACP eligibility is 200 percent or less than the Federal Poverty Guidelines. While the FCC’s original benchmark is based on disposable income, WVDED sought to align this analysis with the Federal Poverty Guidelines, which are based on total income, and reduce the variability that comes with the many ways tax credits and deductions can impact disposable income.

• For a household size of one, the income limit (i.e., 200% of the 2024 Federal Poverty Guidelines) is $30,120, or $2,510 per month.
• For a household of two, the income limit would be $40,880, or $3,406.67 per month.

WVDED examined how closely the $50 per month low-cost plan figure would align with two percent of total monthly household income for various ACP-eligible income levels. For a single-person household, an affordable price would be $50.20 (i.e., 2% of the $2,510 total monthly household income), and for a two-person household it would be $68.13 (i.e., 2% of the $3,406.67 total monthly household income).

Because the Federal Poverty Guidelines increase with household size, the limits on what would be considered affordable according to this benchmark also increases with family size. So, even for a single-person household, which has the lowest threshold for what can be considered affordable, the unsubsidized cost of this proposed plan falls within its affordability range. It is even more affordable for a two-person household, more so for three, and so on. If the ACP subsidy could be applied, bringing the cost down to $20 per month, it would fall well within the benchmark for many ACP-eligible individuals. As such, the plan will serve the needs of residents. In a similar manner to the FCC, WVDED acknowledges that this benchmark is not a perfect measure of affordability but can be used as one of many assessment tools. 

What Happens After ACP?

Due to a lack of additional Congressional funding, the FCC officially ended the ACP on June 1, 2024.

WVDED did not have control over ACP's expiration or whether a successor program will be established. The state's low-cost plan will help ensure some level of end-user price stability because these plans would be capped at $50 per month, which leaves room to still be considered affordable for many. However, to provide greater end-user price stability would require a program of equal or greater size and scope—which is outside of the remit of WVDED and not financially feasible.

The end of ACP will hamper West Virginia's Digital Equity Plan; the state's first goal for reaching universal connectivity is "Realize Affordable Connectivity." WVDED aimed at increasing enrollment in the Affordable Connectivity Program through four strategies:

1. Because WVDED will have information on what houses will receive broadband connections through the BEAD program, it planned to generate a list of homes in the affected areas and distribute mailers with information on ACP. These mailers would have been distributed in tranches leading up to service availability.
2. WVDED was going to create standardized procedures for ISPs to use when individuals sign up for service to ensure that those who qualified for ACP would at least be aware of it.
3. West Virginia 211 was going to provide information about the ACP to all callers.
4. West Virginia hoped to develop a process for automatically enrolling qualified households in ACP if these households were recipients of other income-based assistance programs.

West Virginia's Middle Class Affordability Plans 

Each state must include in its BEAD plan a middle-class affordability plan to ensure that all consumers have access to affordable high-speed internet at reasonable prices.

WVDED seeks to meet this requirement while recognizing that establishing a lower-cost 1/1 Gbps plan may not be economically viable for many potential applicants and could deter participation. The latter understanding arose from an informal review of existing plans and internet service provider capabilities throughout the State. WVDED further recognizes that greater consumer choice in the market empowers residents to choose the best type of high-speed broadband plan for their needs. To that end, the affordability criterion contains two tiers for how to earn points: plans that offer either 100/20 Mbps or 1/1 Gbps. 

West Virginia will strongly encourage subgrantees to offer middle-class broadband service plans, and affordability will constitute 25 out of 100 available points for proposals. Applicants seeking points from this criterion shall submit the prices for plans that they plan to offer all residential Target Locations in their Target Areas. These plans must fall into either or both of the following categories: 1/1 Gbps or better for priority projects or 100/20 Mbps or better for non-priority projects. 

These plans must have no data cap or data overage charges, inclusive of all fees, taxes, and charges. Furthermore, applicants must certify that they will adhere to the following rules for these plans: 

• The plan must be offered for ten years from service turn-up;
• The latency for these plans must not exceed 100 milliseconds;
• WVDED will permit annual price increases commensurate to year-over-year changes in the Consumer Price Index for All Urban Consumers: All Items Less Food & Energy (also known as Core CPI) as defined by the U.S. Bureau of Labor Statistics; and
• WVDED will permit cost changes due to new or increased government-mandated taxes and fees imposed on the consumer, not providers. 

BEAD subgrantees in West Virginia will be required to provide metrics related to the uptake of these plans, including, but not limited to, the number of individuals that have subscribed to them and the locations of these individuals at a county level. 

WVDED shall award points according to the following schedule: 

• Priority Project Scoring: One point for every $2 below $115 per month for plans offering 1/1 Gbps or better (max 25 points)
• Non-Priority Project Scoring: One point for every $2 below $85 per month for plans offering 100/20 Mbps or better (max 25 points) 

Similar to the low-cost option, WVDED relied on the FCC's two percent benchmark for assessing affordability.

The five-year median household income in West Virginia in 2021 dollars was $50,884. Dividing the median income by 12 and applying the 2% of monthly household income would set affordable broadband in the state at $84.80. As such, WVDED set the benchmark for a plan aimed at middle-class affordability at $85 and awards points for entities that can offer 100/20 Mbps plans below this amount. Regarding the 1/1 Gbps plan, this is intended to incentivize applicants to look toward and offer plans that will meet the growing broadband needs of residents while using a benchmark that is still achievable for those seeking to earn points from this criterion.

The entire set of affordability points is not mandatory and applicants can earn full points in the criterion without including a 1/1 Gbps plan. With that in mind, WVDED started with the FCC’s 2023 Broadband Reasonable Comparability Benchmark, which is derived from its Urban Rate Survey Data. The Benchmark calculator lists a 1/1 Gbps plan with an unlimited data allowance as costing $142.59. To create a reachable but still forward-looking price, WVDED reduced this number by 20 percent, which equates to $114.07. For ease of scoring, WVDED rounded this figure to $115 for the purpose of the 1/1 Gbps plan. 

Conclusion

West Virginia recognizes that an equitable and robust low-cost service option promotes the uptake of BEAD-funded broadband networks among residents of varying socioeconomic and geographic backgrounds. NTIA emphasizes that access to affordable broadband is among the Infrastructure Investment and Jobs Act’s objectives, and WVDED has sought to keep with the spirit of this objective.

Additional Coverage on West Virginia Broadband Priorities

• West Virginia's Plan for Digital Equity Depends on the Affordable Connectivity Program
• West Virginia's Plan to Conquer the Digital Divide
• Capital Projects Fund Aids West Virginia's Billion Dollar Broadband Strategy

See the latest West Virginia 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

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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