Affordability/Cost/Price

Senator Ed Markey (D-MA) introduced a bill with real potential to mitigate the digital divide. Most proposals simply call for more money for existing programs or for new programs without evidence they will help. Real-world experience, however, has demonstrated how little we truly understand about why many low-income people do not subscribe. The Markey bill tackles this underlying issue.

The Federal Communications Commission in April estimated that 22.3% of Americans in rural areas and 27.7% of Americans on tribal lands don’t have access to fixed broadband with the typical speed standard of 25 megabits per second (mbps), a moderate browsing speed. By comparison, only 1.5% of Americans in urban areas can’t reach that speed. Nearly 21% of Americans also aren’t active smartphone users, according to market research.

On March 19, 2020, Senators Richard Blumenthal (D-CT), Ed Markey (D-MA), Michael Bennet (D-CO), and Brian Schatz (D-HI) wrote to Federal Communications Commission Chairman Ajit Pai regarding keeping Lifeline subscribers connected during the COVID-19 pandemic. "We strongly urge the FCC to commit that no one loses access to Lifeline at this time of crisis. Congress has invested the FCC with emergency powers to waive, suspend, or revise its policies and regulations for challenging times.

New York City is committed to the goal of universal broadband, as described in the New York City Internet Master Plan (2020). In light of COVID-related health and safety guidance from New York City and public health officials, internet access in the home has become an even more essential service, required for safe access to health care, continuation of employment and schooling, and connections to family and friends.

Despite private-sector broadband investment exceeding $70 billion per year since 2013, the digital divide remains. Over 20 million households have access to, but are not connected via, a fixed broadband connection. This is a classic market failure. Without some government intervention, there will be an under-consumption of broadband. But what kind of intervention is called for?

For many Americans during the height of the COVID-19 crisis, gaining access to high-speed Internet hinged on the temporary charity of private service providers, or perhaps required a family to drive to a more connected area.

Federal Communications Commissioner Michael O'Rielly and Rep. Suzan DelBenne (D-WA) agreed that the US government needs to help expand internet access to more households as the coronavirus pandemic exposes significant gaps in coverage. Commissioner O'Rielly said that while many classrooms, doctor’s offices and workplaces have moved online, about 20 million Americans don’t have broadband. “COVID-19 didn't bring this issue upon us, but it's made it more prominent.” He said that lack of equipment and affordability are the main obstacles for households who aren't able to log on.

Internet providers like Charter and Comcast have introduced offers of free and low-cost internet with great fanfare in the last several weeks. The companies have said they want to help connect poor Americans during a pandemic that has shifted much of life online. Schools and community organizations have aggressively promoted the offers. Scores of customers have tried to sign up. But people signing up for the programs have encountered unexpected difficulties and roadblocks, according to interviews with people who have tried to sign up or who have helped them.

The federal Lifeline program was created in the 1980s under President Ronald Reagan to help low-income Americans afford telephone service. It has been expanded over the years to help provide access to a basic cellphone with a limited amount of data. The most recent evolution, to accommodate broadband, was demonized by some Republicans who labeled it the “Obamaphone” program.

Companies say internet network capacity has stayed strong the last two months, but some providers are struggling to repay loans, provide internet routers, or find enough personal protective equipment to protect workers from COVID-19. Federal Communications Commission Chair Ajit Pai told the House Communications Subcommittee May 19 one reason the networks have been able to handle the traffic increase is because of investments and improvements in broadband infrastructure in recent years. “Since 2016, for example, Internet speeds are up over 80%.