Affordability/Cost/Price

This brief examines how place-based factors—such as education levels, social vulnerability, regional economic strength, and measures of income inequality—influence broadband affordability. These measures reinforce that income is not the only factor policymakers should consider when seeking to understand broadband affordability and adoption challenges.

State Broadband Offices and the BEAD grant process have designed grant rules that put pressure on internet service providers to provide inexpensive rural broadband. But in doing so, I’m not sure that they understand the high prices that rural folks are paying for broadband today. In rural areas I've looked at, most households are paying over $100 a month for broadband. There are state BEAD rules that are trying to force rates down to rates between $50 and $75 per month for gigabit speeds. I find several faults with these rate-setting efforts:

The Federal Communications Commission's Wireline Competition Bureau (Bureau) and the Office of Economics and Analytics (OEA) announce the availability, under the terms of the 2023 IPCS Protective Order, of the preliminary Incarcerated People’s Communications Services (IPCS) Database (2023 IPCS Database). The FCC staff developed this database to help analyze data and other information that IPCS providers submitted in response to the Commission’s 2023 Mandatory Data Collection.

On Monday, March 18, 2024, Federal Communications Commission Chairwoman Jessica Rosenworcel, FCC Commissioner Geoffrey Starks, and Congresswomen Yvette Clarke (D-NY) urged action to continue the Affordable Connectivity Program (ACP).

Congress is spending $65 billion to connect the rural United States to the world. Orangeburg (SC) knows the stakes better than anywhere. Like hundreds of rural counties across the US, Orangeburg is ignored by commercial broadband service providers who think it’s not profitable to lay fiber optic lines in the area. In the absence of service from companies like AT&T, Comcast, Verizon and Charter, counties and small towns in rural America could build broadband networks for their residents themselves, which can make the difference between prosperity and poverty.

A group of 33 senators urged Senate leadership to include funding for the Affordable Connectivity Program (ACP) as part of future must-pass legislation, including the next government funding package. We write to urge you to take immediate action to fund the Affordable Connectivity Program (ACP) and the Secure and Trusted Communications Networks Reimbursement Program. Both of these programs are vital for closing the digital divide, by making connectivity affordable to millions of working families and ensuring providers are able to continue serving rural communities.

Created by Congress in 2020 and renewed in 2021, the Affordable Connectivity Program (ACP) is helping 23.3 million households afford internet access. But funding for ACP—the largest, most successful internet affordability program in US history—is set to expire on May 30, 2024. This week, President Joe Biden proposed short- and long-term funding solutions in his budget. And a House bill to provide funding through the end of 2024 had 180 cosponsors in the House of Representatives.

This week, the Biden-Harris Administration announced its proposed 2025 fiscal year (FY) budget. According to the White House, President Biden's top economic priority in the FY 2025 budget is to lower costs for American consumers–reducing junk fees, lowering healthcare costs, and the prices of everyday goods and services.

On March 14, the Federal Communications Commission adopted its annual assessment of whether broadband is being deployed in a reasonable and timely fashion.

Even though there are enough Republicans in Congress to pass an extension of the soon-expiring Affordable Connectivity Program, industry observers are pessimistic about its passage. Because House Speaker Mike Johnson (R-LA) is not supportive, said Blair Levin, the measure is unlikely to get a vote before the House of Representatives. Paul Gallant, a technology policy analyst for investment bank TD Cowen, agreed. “Congress is probably going to do nothing,” said Levin. "If it were to hit the floor, it would pass, and I don’t think Speaker Johnson is going to let it go to the floor.