Affordability/Cost/Price

Using Federal Communications Commission and other public data sources to assess recent trends in residential fixed broadband pricing in the United States. The analysis reveals continued substantial price reductions for both the most popular and highest-speed broadband internet services. The data show consumers are also benefiting from marked increases in the speeds they receive for their broadband dollar.

Competition is a wonderful thing. A case in point is the enormous difference Charter Spectrum charges new customers in areas where competition exists, and where it does not. Stop the Cap! compared promotional new customer offers in the metro Rochester (NY) market where Spectrum faces token competition from Frontier’s slow speed DSL service. Then we checked pricing in neighborhoods where a fiber to the home overbuilder called Greenlight also offers service. Spectrum does not even bother offering new customers its entry-level 200 Mbps plan in areas where it has significant fiber competition.

Verizon CEO Hans Vestberg argued policymakers should focus broadband funding more on promoting affordability rather than accessibility. “I think that when it comes to accessibility, I think that all carriers are building quite extensively,” he said, adding Verizon covers “almost all individuals in this country with” its wireless network. “Now we're turning that into fixed wireless access or using our fiber-to-the-home.

Spectrum is forcing customers who are eligible for a new federal subsidy for internet service to opt into full-price plans once the subsidy runs out. The policy appears to skirt rules set forth by the Federal Communications Commission, which is running the Emergency Broadband Benefit program. The $3.2 billion emergency broadband benefit, which launched earlier this month, gives people up to $50 off of their monthly internet bill. The stopgap funding was allocated in response to the pandemic and is expected to run out within the year.

President Biden’s recently announced infrastructure proposal calls for a massive, unprecedented investment aimed at connecting all Americans to the Internet, one that has led to some digital equity experts calling it a potential game changer for their work. What does Biden’s plan need to do to fully address digital equity and Internet access in the United States? Experts say: availability is goog; adoption is better.

Internet access for Americans has taken on new urgency since the pandemic. Prior to it, many people without a home broadband connection could manage, perhaps using a smartphone for web surfing or taking a computer to the library to use Wi-Fi for more data-intensive applications. But the pandemic exposed the limits of wireless data plans for schoolwork or working from home, as well as the severe consequences of having limited or no access to the internet at home.

Federal and state governments have earmarked billions of dollars to build out fast internet service, but most plans don't address one of the biggest reasons people don't have broadband at home: They can't afford to pay for service. If the early days of the Emergency Broadband Benefit program are any indication, there is big demand for a more substantial subsidy. In the first week of the program, more than 1 million households signed up. Some civil rights and consumer groups are joining with the broadband industry to push Congress to make the broadband subsidy permanent.

House Commerce Committee Ranking Member Cathy McMorris Rodgers (R-WA) and Communications Subcommittee Ranking Member Bob Latta (R-OH) urged Commerce Committee Chairman Frank Pallone (D-NJ) to schedule an oversight hearing to review the Federal Communication Commission’s implementation plans regarding key connectivity programs and their commitment to free speech.

On May 12, the Federal Communications Commission launched its Emergency Broadband Benefit Program. The program was included as part of the Consolidated Appropriations Act, 2021, which was passed by Congress and signed into law by President Trump in December 2020 to provide relief during the pandemic.

When it unveiled its National Broadband Plan in 2010, the Federal Communications Commission declared that every American should have access to affordable and robust broadband service by 2020, along with “the means and skills to subscribe.” It was the right goal; as the COVID-19 pandemic has made painfully obvious, broadband is key not just to economic growth and productivity, but also to equal access to education, jobs, healthcare and an array of opportunities.