Want to Keep America Home? Give Everyone Free Basic Broadband.

Here is a very simple idea to persuade Americans to stay home, keep our virtual society running, and stimulate the economy. As part of the coronavirus stimulus package, the US government will cover everyone’s broadband bill for a basic connection capable of supporting two-way video (ideally 25/25 Mbps, but we may have to settle for the Federal Communications Commission official definition of broadband of 25/3 Mbps). 

How This Would Work: In the next stimulus bill, we include a provision that requires all ISPs to provide a broadband connection that either meets this definition or is as fast as technically feasible to anyone who asks for it. This only applies to wireline or fixed-wireless connections, not mobile (wireless) internet. In return, the ISP gets to bill the government a set amount per subscriber. Let’s be generous and say $50/month per subscriber, plus a $25 hook-up fee for new customers. The broadband provider submits an invoice to the government. The federal government pays the broadband provider. One month after the crisis ends, everyone reverts back to their previous contract with their broadband provider. In the case of new hook ups, they can either get a new subscription or be terminated without any fee. This won’t help the people who don’t have access to broadband at all. The stimulus package should also include funds to expand deployment to people who have no access. But this provides a financial stimulus to both the ISPs and directly to consumers. In terms of stimulating the economy, that’s double the bang for the buck for a desperately needed service.