Analysis

On May 9, 2022, President Joe Biden and Vice President Kamala Harris announced that they have secured commitments from 20 internet service providers to lower high-speed internet costs for US consumers. The providers are all participating in the Affordable Connectivity Program, a $14.2 billion federal program created by the Infrastructure Investment and Jobs Act to subsidize broadband service for

On President Biden's first day in office, he signed the Executive Order On Advancing Racial Equity and Support for Underserved Communities Through the Federal Government. The January 20, 2021 order states that the federal government must pursue a comprehensive approach to advancing equity for all.

As policymakers begin to plan how to use Infrastructure Investment and Jobs Act (IIJA) funds to increase broadband connectivity, there are three important data points from two recent surveys to keep in mind:

1. Some 32% of households are subscription vulnerable, that is, they struggle to maintain service and have a very difficult time affording service.

2. Only 18% of cellphone-only respondents were “very satisfied” with their online access for activities such as school or work, activities that moved online during the COVID-19 pandemic.

On March 15, 2022, President Joe Biden signed the Consolidated Appropriations Act, 2022 which provides funding through September 30, 2022 for projects and activities of the Federal Government. Much of the coverage of the law highlights the $13.6 billion in funding to address Russia’s invasion of Ukraine and the impact on surrounding countries. But there's also more funding for broadband in the new law.

 This is the third in a series of articles looking at which providers are opting to offer services supported by the Affordable Connectivity Program. Here, Benton looks at the offerings of the largest wireless companies in the United States. According to wireless trade association CTIA, all three national providers and numerous regional providers support the Affordable Connectivity program—representing approximately 95% of existing wireless subscriptions and covering more than 99% of all Americans.

Low-income households are spending too much on connectivity. Prior to the pandemic, the Federal Communications Commission’s Lifeline program supported mainly wireless communication services for low-income households; its $9.25/month subsidy resulting in service plans that restricted voice and data usage. To address Americans’ online connectivity needs during the pandemic, Congress directed the FCC to launch the Emergency Broadband Benefit (EBB) program—a historic expansion of financial support for universal service.

February 4 was the deadline for written public input on the Infrastructure Investment and Jobs Act broadband programs that the National Telecommunications and Information Administration (NTIA) will administer. Much attention is rightly being paid to the many billions of dollars NTIA will distribute to states in the coming months to ensure broadband networks reach everyone in America. However, there's been less attention given to a provision in the new law creating a new vehicle for broadband deployment: private activity bonds.

As Congress found in the Infrastructure Investment and Jobs Act, access to affordable, reliable, high-speed broadband is essential to full participation in modern life in the United States. The aim of the Affordable Connectivity Program is to ensure broadband is affordable for any household no matter its income. Although the Federal Communications Commission has met an incredibly tight timeline to adopt rules and launch the new Affordable Connectivity Program, there is still a great deal of work to be done. Here's a quick look at what remains on the FCC's agenda.

Congress created the Affordable Connectivity Program through the Infrastructure Investment and Jobs Act, building on the Emergency Broadband Benefit Program created earlier in 2021. For the EBB Program, Congress provided the Federal Communications Commission with $3.2 billion to make monthly broadband service bills more affordable for low-income households. The Infrastructure Investment and Jobs Act adds an additional $14.2 billion for the Affordable Connectivity Program, while leaving in place the EBB Program's basic framework.

On January 11, the U.S. Senate voted 60-31 to confirm the nomination of Alan Davidson to be the Assistant Secretary of Commerce for Communications and Information. Once sworn in, Davidson will lead the National Telecommunications and Information Administration (NTIA), which is President Joe Biden's principal adviser on telecommunications and information policy.