What's Cheaper Than Free?

Commenting on the digital divide earlier this month, Vice President Harris said that “one of the most common reasons [is c]ost, the expense of [broadband].” She then praised the Affordable Connectivity Program (ACP), part of the recently enacted Bipartisan Infrastructure Law, for making so many Americans “eligible to receive a monthly discount on their monthly bill.” In fact, the ACP does more than that. Given the widespread availability of low-income plans and the $30 per month ($75 on tribal lands) plus $9.25 per month from Lifeline, it makes broadband access free for nearly everyone who is eligible. The Administration and the FCC should feel proud of this accomplishment. Still, surveys, price data, and real-world behavior suggested that cost has, over the years, become a smaller contributor to the digital divide. We should figure out the other reasons keeping people from accessing the internet. Ongoing surveys by the Pew Research Center show the share of unconnected people reporting cost as a reason decreasing steadily over the years. The two reasons most commonly reported for not having a home broadband connection are that a “smartphone lets you do everything online that you need to do” and that the respondent is not interested. Even ten months into the pandemic, 71% of non-subscribers reported no interest. Importantly, the share of respondents who report cost as a barrier has been decreasing steadily, from 59% in 2015 to 45% in 2021.