Affordability/Cost/Price

New York City unveiled a massive new Internet Master Plan in Jan that experts say is the largest and most aggressive local broadband improvement project in US history. If successful, the city's proposal could become a template for other towns and cities looking to improve broadband access and provide a leg up to regional economies.

It's budget season. Federal departments and agencies are making their funding requests to Congress for fiscal year 2021 (starting October 1, 2020 and ending September 30, 2021). And part of the ask is reporting how well an agency did achieving its FY 2019 goals. One of the primary goals of the Federal Communications Commission is to close the digital divide in rural America.

As policymakers consider digital inclusion solutions, understanding the root of the problem is important. There are a number of ways people’s decisions not to subscribe to broadband could play out. Older adults – especially those on fixed incomes – may find the monthly fee burdensome but also struggle with the skills to use the internet. Low-income households, particularly those with children, likely understand the internet’s importance, but they may struggle with service affordability.

In the coming years, 5G wireless Internet stands poised to remake the online world, its unprecedented speed enabling advances in everything from public safety to virtual reality. Within this progress, however, there exists another near-certainty — segments of the population will be left out of the advantages.

Sixty-one percent of the US population had low-priced wired broadband available to them in the fourth quarter of 2019, according to new broadband affordability research from BroadbandNow. Researchers defined low-priced service to include offerings priced at $60 or less. This was a substantial increase from the third quarter of 2019, when 52% of the US population had low-priced service available.

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: