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.”

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

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BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

The White House, in coordination with the Federal Communication Commission (FCC) and the U.S. Commerce Department, has kicked off a major push to get more of the estimated 52 million eligible households across the nation to take advantage of the Affordable Connectivity Program (ACP).

Established with the passage of the bipartisan infrastructure law, the ACP provides a $30 monthly subsidy for qualified low-income households to pay for home Internet service, as well as a one-time $100 subsidy to help pay for an Internet-connected device. (Eligible households on Tribal land get a $75/month subsidy).

The FCC recently announced $66 million in grant awards to help states boost ACP enrollment, which has come to be seen as being notoriously complicated among those working in the field.

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And on Monday, the White House hosted a webinar with three national nonprofit organizations to announce the launch of an “Online for All” campaign aimed at helping more families enroll with what they called “user-friendly tools” and digital navigator support for community organizations and state governmental entities.

Call to Boost Anemic ACP enrollment

The nationwide push to get more ACP-eligible households enrolled in the program comes because, even a year after the ACP was first established, only “16 million (of 52 million) households are participating. We need to double down on that. We need your help more than ever,” one White House official told digital equity advocates and Internet service providers invited to Monday’s webinar.

The Schools, Health & Libraries Broadband Coalition (SHLB) will present the first AnchorNETS Broadband Summit this November 16th & 17th in Mountainview, California. The event is designed to help leaders from anchor institutions such as schools, hospitals, and libraries connect and learn about solutions to help them achieve gigabit connectivity. The conference will be held at the Computer History Museum. Our own Christopher Mitchell will be there as well.

Keynote Speakers include:

• Evan Marwell, CEO & Founder, EductionSuperhighway
• Catherine Sandoval, Commissioner, California Public Utilities Commission (CPUC)
• Sunne Wright McPeak, CEO, California Emerging Technology Fund

Attend AnchorNETS to:

• Gain information and practical guidelines to access funding from Federal, State and Local government
• Learn about the economics of middle-mile fiber deployment and the role of next generation wireless technology
• Develop new community engagement practices and programs

More information is available on the web: www.anchornets.com, where you can check out the agenda, information on the speakers, and register online.

Download the flyer below for more information.