Affordability/Cost/Price

On September 9^th I testified to the House Subcommittee on Communications and Technology at a hearing entitled “From Introduction to Implementation: A BEAD Program Progress Report.

On September 10, 2024, the House Commerce Committee's Communications and Technology Subcommittee held an oversight hearing focused on the Broadband Equity, Access, and Deployment (BEAD) Program. BEAD was established with $42.5 billion by Congress in the Infrastructure Investment and Jobs Act. Congress charged the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA) with implementing BEAD which provides grants to states to deploy broadband in unserved and underserved areas.

On September 6, 2024, the Federal Communications Commission launched its latest (and 18th overall, if you're scoring at home) inquiry into the state of broadband in the United States.

FarrPoint's International Digital Connectivity Readiness Index (DCRI) measures performance in both digital infrastructure and digital adoption. Overall, the United States ranks joint 2nd in the G7 for Digital Connectivity Readiness. The US ranks 6th in digital infrastructure, leading in 4G and 5G but struggling with broadband and Gigabit coverage. On adoption, it ranks 3rd, excelling in the Digital Economy, innovation and public services but facing challenges with Digital Skills, Security, and affordability. However, the US faces challenges in other aspects of digital adoption.

After the Infrastructure Investment and Jobs Act was signed into law in 2021, the Massachusetts Broadband Institute (MBI) was tasked with the creation of an Internet for All plan that will work to close the digital divide for the Commonwealth of Massachusetts, expanding high-speed internet access and digital equity programming across the state. MBI plans to accomplish these tandem goals include its Broadband Equity, Access and Deployment (BEAD) Program Initial Proposals Volume 1 and 2, as well as the State Digital Equity Plan.

In early August 2024, the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) approved Wisconsin’s Initial Proposals for the Broadband Equity, Access, and Deployment (BEAD) Program. Congress allocated Wisconsin over $1 billion to deploy or upgrade high-speed Internet networks to ensure that everyone has access to reliable, affordable, high-speed Internet service.

With home working becoming ubiquitous, along with internet gaming and video streaming, a stable and dependable network is more important than ever. Alongside price, reliability is the key metric driving consumers’ decisions when choosing an internet connection—lightning-fast marketed speeds are irrelevant without a stable connection to use them. This report uses Opensignal’s new Broadband Reliability Experience metric to quantify the real-world experience of our U.S. fixed broadband users. Key findings include: 

The process of creating effective, pro-consumer policies is often filled with opportunities, challenges, and ambiguity. The process has been no different for the Federal Communications Commission’s Affordable Connectivity Program (ACP), which allowed 23 million low-income households an opportunity to reliably connect to affordable high-speed internet.

Two very real Universal Service Fund (USF) problems need to be addressed: funding and spending. The way the program is funded is inefficient, unsustainable, and regressive. Regardless of the judicial outcome, the tax that the court declared unconstitutional is both inefficient, by taxing a small, price-sensitive, declining base, and regressive, with a higher proportional burden falling on those least able to afford it. The program spends too much money on the wrong things. The High Cost Fund in particular, which accounts for about half of total spending, is outdated and wasteful.

Connect Kākou is the Hawaiʻi statewide broadband initiative led by the University of Hawai'i' Broadband Office (UHBO) to ensure people from all walks of life have reliable and affordable access to high-speed Internet. The name “Connect Kākou” was chosen to reflect Hawaii’s goal of using high-speed internet to connect everyone across the state. The Hawaiian word “kākou” is used to convey the idea of “all of us,” and underscores the sense of collective responsibility and unity that this initiative represents.