Studies consistently show that the primary reason millions of households do not have home Internet service boils down to affordability.

Research by EducationSuperHighway indicates that of the estimated 28.2 million households in the U.S. that do not have high-speed Internet service, 18 million of those households (home to 48 million Americans) are not online because the cost of service is simply too expensive.

But now, thanks to a recently published study by the Federal Reserve Bank of New York, broadband affordability advocates may be able to more accurately measure the elusive nature of affordable broadband costs.

The study also examines how to better pinpoint contributing factors like the state of local infrastructure and how lower-performing broadband access technologies powerfully influence low-income households' decision to sometimes choose cellular service-only over home Internet service.

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“Broadband Affordability: Assessing the Cost of Broadband for Low-and-Moderate Income Communities in Cities” provides a research-driven lens on how to measure broadband affordability neighborhood by neighborhood, city to city.

“While national and state-level analyses have helped highlight the digital divide,” the study’s author Ambika Nair writes, “measures of broadband affordability at the community level are limited.”

Vineland, New Jersey officials say they’ve secured a $3.7 million grant from the state that will help expand fiber and wireless broadband access to the city of 62,000. Local officials are hopeful the grant is just the beginning steps toward dramatic expansion of affordable access.

Vineland’s new grant was made possible by the New Jersey Broadband Infrastructure Deployment Equity (NJBIDE) grant program. NJBIDE will be delivering $40 million in broadband grants via the state’s Capital Projects Fund (CPF), made largely possible by the 2021 federal passage of the American Rescue Plan Act (ARPA).

NJBIDE grants prioritize fiber optic infrastructure of 100 megabytes per second (Mbps) and mandates the provision of at least one low-cost option (not specifically defined by New Jersey) to serve low income communities – something increasingly important in the wake of the federal government’s retreat from efforts to ensure equitable and affordable broadband. (Still early in the process, the city has not yet determined the exact pricing and service tiers the network will offer once construction is complete).

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A 2024 city proposal indicates that city leaders want to spend between $35 and $40 million to create a citywide broadband network, starting with a citywide fiber ring. The city paid for a viability study from Bonfire that found that at least 42 percent of the City does not have access to viable, quality, affordable broadband service.

Newark, New Jersey is taking full advantage of its city-owned fiber network to expand affordable broadband access – with a particular eye on helping the city’s least fortunate.

Driven by past successes with city-owned fiber and Wi-Fi, Newark has announced the city is significantly expanding the availability of $20/month broadband service to numerous Newark Housing Authority (NHA) apartment buildings.

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This latest partnership with Adrena leans heavily on Newark Fiber, a 288-strand city-owned fiber network. Launched in 2016, the network has steadily been expanded to connect anchor institutions. But it’s also been a cornerstone of the city’s efforts to revitalize and assist many lower income – and long neglected – Newark neighborhoods.

“Nine percent of Newark families lack computers and about 20 percent of the city doesn't have an in-home broadband connection,” Aaron Meyerson, Chief Innovation Economy Officer & Director of Broadband for the City of Newark told ILSR.

After years of planning, Edison, New Jersey officials are moving forward on a municipal fiber plan built on the back of a $2 million American Rescue Plan Act (ARPA) grant. While the funding was originally announced last summer by state leaders, city officials only just passed a resolution last week accepting the grant.

Edison residents have long complained of a local broadband monopoly at the hands of Optimum, resulting in spotty access, slow speeds, and high prices. While Edison wants to break the competitive logjam, the full cost and scope of Edison’s as-yet-unfinished plan remains unclear.

Edison spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

"Ending Optimum’s monopoly in Edison is a high priority," Edison Mayor Sam Joshi wrote on Instagram and Facebook shortly after the study was published, calling it "a step towards internet freedom."

Edison, New Jersey is proceeding with the construction of an affordable, gigabit-capable fiber network after receiving $2 million cash infusion from state leaders. The resulting network will be built on the back of decades’ worth of local frustration with the high prices, spotty availability, and slow broadband speeds provided by regional monopolies. 

The city spent $36,750 on a feasibility study in 2022 to determine the plausibility of building a citywide fiber network. The resulting study by Matrix Design Group found that 87 percent of Edison locals would likely switch to a city-owned and operated fiber network if the option existed.

Edison’s network is in the early stages of planning, and city leaders are only just starting to field competing bids from consulting vendors who’ll then draft a more comprehensive business plan.

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In the interim, the city has received $2 million as part of the New Jersey fiscal year 2024 budget to help get the proposal off the ground.

"Access to the Internet is no longer a luxury, it’s a necessity,” State Senator Patrick Diegnan, Assemblyman Robert Karabinchak and Assemblyman Sterley Stanley said of the funding. “We commend Mayor Sam Joshi for making high-speed municipal broadband a priority for Edison."

In a post last year made to social media, Joshi detailed the city’s longstanding frustration with regional telecom monopoly Optimum, owned by French telecom giant Altice.  

Broadband was on the ballot as voters went to the polls for Election Day in many areas. Here’s a quick run-down of what happened.

Colorado

The Colorado state law (SB-152) that bans local governments in the Centennial State from establishing municipal broadband service suffered another defeat at the ballot box. Since the law was passed nearly two decades ago, more than 150 Colorado communities have opted out. That number continues to grow and we can now add the town of Windsor to the list of municipalities in the state who have voted to restore local Internet choice.

At the polls yesterday, 77 percent of Windsor voters said yes to Ballot Question 3A, which asked “shall the Town of Windsor, without increasing taxes by this measure, be authorized to provide high-speed Internet services (advanced services), telecommunications services, and/or cable television services … either directly or indirectly with public or private sector partners?”