Affordability/Cost/Price

For as long as the internet has existed, there’s been a gap between those who have access to it—and the means to afford it—and those who don’t. The vast majority of federal broadband spending over the past two decades has gone toward expanding internet access to rural areas. Only $14.2 billion went to making the internet more affordable through the Affordable Connectivity Program.

USTelecom and more than 30 other broadband industry groups sent a letter to Secretary of Commerce Gina Raimondo covering several ideas for how the National Telecommunications and Information Administration (NTIA) can remedy the issues posed by the rates being approved for the low-cost service option requirement in the Broadband Equity, Access, and Deployment (BEAD)Pprogram.

In a ruling that quickly caused shock waves in the U.S. telecommunications industry, the Fifth Circuit Court of Appeals ruled, 9-7, that the Universal Service Fund (USF) is unconstitutional as currently administered. The Court explained its ruling by saying that the USF is a “misbegotten tax” that violates Article I, § 1 of the Constitution, which states that all legislative powers are given to Congress, which is made up of the Senate and the House of Representatives.

Sen Chris Van Hollen (D-MD), Baltimore City Mayor Brandon Scott (D-MD), and Federal Communications Commission Chairwoman Jessica Rosenworcel spoke about plans to expand internet connectivity in Baltimore. The Enoch Pratt Free Library currently has about 2,000 hotspots in circulation. According to Meghan McCorkell, Enoch Pratt Free Library’s chief of marketing, communications and strategy, about 969 people are waiting for a hotspot.

After the Fifth Circuit ruled, 9-7, that the Universal Service Fund is unconstitutional as currently administered, we've seen the following responses.

A new survey from the Benton Institute for Broadband & Society focusing on low-income Americans shows that affordability challenges are pervasive for low-income households, a problem the Affordable Connectivity Program (ACP) helped alleviate for those most in need. The survey finds that:

Delaware’s goal for broadband deployment is to be the first state to deliver universal broadband—that is, to ensure an affordable high-speed internet connection to all homes and businesses. Affordability is the second most common reason for nonsubscription cited by Delawarean households who do not purchase home internet service—ranking above a lack of need for or interest in service, and slightly below service not being available. The struggle of some Delaware residents to afford broadband services, devices, and technical support restricts their ability to fully engage in the digital world.

West Virginia's plan for Broadband Equity, Access, and Deployment (BEAD) Program funds aims to ensure that every resident has access to reliable, affordable, and high-speed broadband and the ability to use it effectively. The cost of high-speed broadband internet service in West Virginia remains a significant barrier to adoption.

J.D. Vance, the Ohio GOP senator announced as Donald Trump's running mate for the presidency, isn't expected to have a broad impact on US telecommunications policies. But he could have something to say about how the country helps consumers afford access to critical broadband services.

San Francisco, Oakland, and Fremont (CA) all received a federal grant for $32 million to expand their internet access. The grant is hoping to serve people who lack fast internet service, and create more options for accessing the web. The grant comes from a program by the California Public Utilities Commission to expand broadband infrastructure across the state for underserved communities.