Assessing Broadband Affordability Initiatives

The basic tenet of universal internet service—that the government should assist those who cannot afford basic access to the network—has long been a cornerstone of American telecommunications policy. Unfortunately, it is far from clear whether Lifeline, the federal program tasked with getting low-income households online, actually addresses this problem. The recently enacted Affordable Connectivity Program (ACP) threatens to compound Lifeline’s errors. The advent of ACP provides a unique opportunity to rethink our approach to broadband affordability initiatives. Rather than replicating a faulty subsidy model originally developed during the Reagan administration for landline telephones, Congress should adopt a tailored, data-driven program targeting only those low-income households that currently lack broadband service or that are at significant risk of losing access absent a subsidy. With a targeted, market-based approach in place, Congress should shutter the largely duplicative and potentially ineffective Lifeline program and alleviate the pressure that it puts on the Universal Service Fund (USF) and consumers.

[January 2023]