Affordability/Cost/Price

We evaluate the impact of mobile operator mergers on the unit price of data and voice by using country-level observations on retail revenue for data, cellular data traffic, retail revenue for voice, and outgoing voice minutes. Using a difference-in-differences estimation strategy, we estimate the effect of operator merger by comparing the difference between the non-merging countries and the merging countries before and after the introduction of the operator merger.

AT&T and Frontier have let their copper phone networks deteriorate through neglect since 2010, resulting in poor service quality and many lengthy outages, a report commissioned by the California state government found. Customers in low-income areas and areas without substantial competition have fared the worst, the report found. AT&T in particular was found to have neglected low-income communities and to have imposed severe price increases adding up to 152.6 percent over a decade.

Acting Chairwoman Jessica Rosenworcel circulated a Report and Order that, if adopted, would establish the Emergency Broadband Benefit Program, a $3.2 billion federal initiative to provide qualifying households discounts on their internet service bills and an opportunity to receive a discount on a computer or tablet. The proposed Emergency Broadband Benefit Program Report and Order:

On February 17, the House Subcommittee on Communications and Technology held a hearing on COVID-19's impact on the digital divide and the homework gap. There was bipartisan agreement on the importance of expanding broadband access. Democrats focused more on affordability issues, especially during the pandemic, as well as improving data on where broadband is available and where it isn't. Republicans mostly extolled deregulation as a way to encourage rural broadband deployment and the need to streamline wireless infrastructure to facilitate buildout of the next generation of wireless, 5G.

The two biggest cable companies, Comcast and Charter, have taken lots of public bows in 2020 talking about how they are making sure that homes with students have affordable broadband during the pandemic. Comcast is serving low-income students with its Internet Essentials product. Charter has a similar product called Spectrum Internet Assist that delivers 30/3 Mbps for $14.99 with a WiFi router for $5 per month.

The National Digital Inclusion Alliance (NDIA) filed reply comments to the Federal Communications Commission focusing on the need for community-based outreach of the Emergency Broadband Benefit (EBB) program. In the comments, we recommended that the FCC allocate $30 million of its allowed $64 million in EBB program administration dollars to the states, tribes and territories to disburse for community-based outreach. Our main points:

I want to focus on one critical aspect of moving through and forward from this difficult time: bringing high-quality, affordable broadband into every home—something that’s at the heart of so many of the economic development priorities you are exploring during 2021’s conference. We can no longer defer the hard work on digital equity and believe that a future group and time will solve this issue.

NCTA members have connected over 10 million consumers to broadband internet through low-income broadband programs. The Federal Communications Commission is currently seeking public input on the program and will adopt program rules by the end of February. To rapidly connect more Americans to broadband using the Emergency Broadband Benefit Program, NCTA recommends that the FCC:

Federal Communications Commissioners appeared divided on Feb 17 over how the $3.2 billion Emergency Broadband Benefit program funding should be distributed to Americans hit hard by the coronavirus pandemic — either by evenly prioritizing the funding to affected groups or targeting the money specifically to students.

Appalachia represents a key test for President Joe Biden's $20 billion plan to get broadband access to communities that don't have it. President Biden, who said during his campaign that rebuilding the middle class in America is the "moral obligation of our time," faces a myriad of challenges in closing the gap, from actually laying down fiber-optic lines to educating consumers and ensuring that prices are affordable. In 127 of Appalachia's 420 counties, less than 75% of households had a connected device.