Middle-Class Affordability of Broadband: An Empirical Look at the Threshold Question

To receive subsidies to expand broadband to unserved areas under the Broadband Equity, Access, and Deployment (BEAD) program provided by the Infrastructure Investment and Jobs Act (IIJA), the National Telecommunications and Information Administration (NTIA) requires states to implement plans to ensure middle-class affordability. Since the NTIA did not conclude that broadband was unaffordable for middle-class households, the threshold question is whether broadband is affordable to the middle class. Affordability, which has no formal definition, is defined by reference to adoption. Analysis of broadband adoption rates by income groups, both nationally and for individual states, suggests that broadband is at present affordable for middle-class households. Ultimately, until affordability is a concern, no direct intervention is required, though states might monitor affordability over time to comply with the NTIA’s requirement.