Rural Telcos Pursue Low-Income Broadband Pilot Test

Five rural telcos have worked together to propose a pilot program to improve broadband adoption among low-income Americans in rural areas.

With the assistance of the National Telecommunications Cooperative Association (NTCA), the carriers have filed an application with the Federal Communications Commission for program funding. Rural telcos participating in the application include three Illinois-based companies — Adams Telephone Co-operative, Madison Telephone Co. and Mid Century Telephone Cooperative – as well as Iowa-based Alpine Communications and New Mexico-based Leaco Rural Telephone. With plans underway for transitioning today’s voice-focused high-cost Universal Service fund to focus on broadband, the FCC also is contemplating a similar transition for the low-income Lifeline portion of the Universal Service program. Back in January, the FCC announced plans to free up funding for a pilot broadband low-income program through modifications to the Lifeline program and tighter control of disbursements. In April the commission announced that it would make $25 million available for the pilot program. The commission said that any pilot program proposals should not simply focus on affordability but should also include a plan for increasing digital literacy. The proposal from the rural telcos appears to address both of these goals. According to a release issued Tuesday by the NTCA, the application includes a plan to work with the non-profit organization Connected Nation to provide low-cost computers to consumers who complete free online digital literacy training.