NDIA (National Digital Inclusion Alliance) looks at two ways broadband providers can help low income customers…

In the absence of what was the Federal government’s largest subsidy targeting service prices (a $30/month discount for households, and $75/month discount for those households on tribal lands) the responsibility to keep low-income Americans connected to the internet falls more heavily than ever on individual companies – a responsibility which a number have met. NDIA’s Honor Roll page lists those plans from ISPs that meet our low-cost plan inclusion standards for low-cost broadband service.

Of the strategies used to bring broadband into the realm of affordability for low-income households, two approaches from ISPs have emerged as the most common: fixed discount offers, and low-cost plans.

More on low cost options…

Low-cost plans are structured more simply than fixed discount offers, which we review below. Everything to do with subscribing to a low-cost plan can be completed within a single transaction – no need to work out whether an internet plan is compatible with a separate discount offer, or what the final price will be during a promotional period and after promotions expire.

A disadvantage of traditional low-cost plans as an affordability solution is that individual ISPs themselves determine what is considered to be “low-cost” –that is, what qualifies as low-cost for Spectrum may not align with what qualifies as low-cost for AT&T. And neither may coincide with what a consumer considers low-cost.

And fixed discounts…

Fixed discount offers refer to a voucher-style, broadly applicable discount that is applied to an existing internet offer to lower the total monthly price paid by the consumer.

In comparison to traditional low-cost offers, fixed discount offers allow users a certain level of flexibility that traditional low-cost offers may not. Verizon’s Forward discount offer, for example, means a discounted price to consumers who meet certain eligibility criteria, bringing down the cost of a given internet plan by up to $30 (ACP was an example of a fixed discount offer)

One advantage of fixed discount offers is the potential to combine a discount with other promotional offers to reduce monthly bills further, even if temporarily. Fixed discount offers also place slightly more choice, typically with regards to bandwidth, in the hands of users when it comes to choosing the right low-cost internet plan for their needs, assuming there are sufficient options available. In other words, consumers can choose which plans to apply their discount towards, instead of being boxed into an existing low-cost offer being made available by an ISP.