Low-Cost Internet Plan Model

In the absence of the Affordable Connectivity Program, the National Digital Inclusion Alliance (NDIA) encourages ISPs to offer a low-cost plan and/or a discount to qualifying households. NDIA is creating a good-better-best rating system to evaluate the affordability and quality of low-cost internet plans. The rating system will be featured on the Free & Low-Cost Internet Plans webpage to help consumers understand their low-cost options. The low-cost plan model outlined below includes criteria for a “better” rating on the webpage. Before the pandemic, some Internet Service Providers (ISPs) offered “low-cost plans” for eligible households. However, the plans varied widely in their offerings, administration, and eligibility requirements, and many smaller ISPs didn’t offer one. The ACP has demonstrated the essential role of low-cost internet plans. According to the Federal Communications Commission (FCC), over three-quarters (77%) of the survey respondents say losing their ACP benefit would disrupt their service by making them change their plan or drop internet service entirely, and about half of the survey respondents (47%) reported having no internet service or relying solely on mobile internet service before receiving their ACP benefit. NDIA encourages ISPs to adopt the low-cost plan model and/or discount offer.