Affordability/Cost/Price

The House Commerce Committee's Subcommittee on Communications and Technology held a hearing entitled Empowering and Connecting Communities Through Digital Equity and Internet Adoption.

While the spirit of this effort is right on—we have a broadband problem—the way we go about addressing it is not right. 

In this article we draw on our recent case study research to examine the policy (and politics) shaping implementation of Australia's National Broadband Network (NBN) and its likely effects on equity of access to high speed broadband (HSB) services. We monitored NBN policy and implementation from 2015 to 2018 through policy documents, reports, and media. We found that equity considerations competed with political and commercial imperatives during the rollout of the NBN.

Even if broadband coverage isn’t the problem in a local area, the cost of high-speed Internet service may still hold back families who don’t have much money.

Current research suggests that low-income people can only afford to pay about $10  monthly for broadband. Anything more competes with other utility bills and the cost of food. Meeting the goal of universal connectivity and providing fixed broadband at about $10 per month requires a multi-pronged strategy - what my Benton colleague Jonathan Sallet calls an “Affordability Agenda.” It includes:

New America's Open Technology Institute urged the Federal Communications Commission to abandon a cynical set of proposals that would weaken the Lifeline program and jeopardize consumer privacy.

Free Press condemned the Federal Communications Commission for waging war on the poor as the agency moved forward with a proceeding to deny essential broadband and telephone subsidies to low-income people. 

In Washington, DC, today, policymakers, public interest advocates and nonprofits, researchers, and the business community are gathering for the 2020 State of the Net Conference. Hosted by the Internet Education Foundation, State of the Net explores important, emerging trends and their impact on internet policy.

For nearly 35 years, the Lifeline program has provided discounts on phone service for qualifying low-income consumers. Over the years, the program has been reformed to include other critical communications services, including wireless and broadband. On Jan 27, a new set of changes, adopted back in Oct, will go into effect while the public gets to weigh in on additional proposals to reform the program. All month, we've been publishing articles on broadband adoption. For many people who haven't yet started using broadband internet access service, cost is a major obstacle.

New analysis of broadband adoption in a selection of cities shows a strong relationship between low household broadband adoption levels and poverty. The analysis also shows that rising economic tides in cities has little to do with recent growth in broadband adoption – but that declines in poverty rates do.