Is Broadband Affordable for Middle-Class Families?

Since Congress enacted the Infrastructure Investment and Jobs Act, much of the discussion among policymakers and the public regarding Broadband Equity, Access, and Deployment (BEAD) Program has focused on efforts to connect low-income populations. However, the National Telecommunications and Information Administration (NTIA) does not set a benchmark for such affordability, leaving each state to determine what “reasonable prices” means for its residents. This is a challenging task for states for several reasons, including the need to avoid the perception of “rate regulation”—government authority over utility pricing, which the federal and state governments do not have for internet services. States also have to consider the absence of data and research on affordability, and the effect of broadband subscription costs on the budgets of middle-income households. The Pew Charitable Trusts sought to help states address the reasonable price requirement by demonstrating that what qualifies as affordable broadband for middle-class families could vary widely. No one standard exists for broadband affordability, but in 2016, the Federal Communications Commission began using a benchmark of 2% of monthly household income while acknowledging that this benchmark serves “as a clear yardstick for charting changes, not as an inherently meaningful level.” Pew used the FCC’s benchmark and paired findings with data on county- and state-level broadband plan subscription rates. Overall, Pew’s findings indicate that no single solution or standard can apply across all states. Rather, states will need to take a customized approach to their BEAD-funded broadband access projects to meet the needs of middle-class families across diverse US communities.