Understanding uptake in demand-side broadband subsidy programs: The affordable connectivity program case

This paper hypothesizes that Affordable Connectivity Program (ACP) enrollment decisions are not solely individual, but also influenced by community-wide considerations, such as housing costs, share of occupied houses, presence of anchor institutions such as public libraries, and population density (i.e., whether a place is urban or rural). The paper develops a regression model that predicts ACP enrollment rates among eligible households at the 5-digit zip code geography as a function of the variables discussed above. The analysis also controls for existing levels of broadband subscriptions and computer ownership in a given area. The difference between predicted and actual ACP enrollment rates at the 5-digit zip code level is proposed as a metric of ACP performance. The empirical findings show that high levels of economic distress are a strong determinant of ACP enrollment in a given area, but social and community-wide indicators are important as well. Understanding spatial variations in ACP performance can help policymakers and other stakeholders better target resources to address the digital divide.