The Benton Institute for Broadband & Society has a new publication that looks at Achieving Affordability: State Strategies for Getting Everyone Online…
In the absence of federal leadership, state governments are working to ensure that every household can afford to get and stay connected
They looked at…
Some state governments have long prioritized broadband affordability, while others are only now stepping in to fill the vacuum left by Washington. Across their strategic plans, all states cite affordability as one of the chief barriers to achieving universal connectivity. This report examines how states are working to make high-speed internet more affordable for their residents, offering a menu of policy
options explored by states around the country. These approaches fall into six broad categories:
1. LOW-COST PLANS: New York’s Affordable Broadband Act caps the cost of internet plans for low-income households at $20 per month or less. Connecticut will soon require low-cost plans for qualifying low-income residents.
2. STATE LIFELINE REFORM: State Lifeline programs collect mandatory fees from telecommunications companies, which are generally passed on to consumer bills, to fund discounts on eligible low-income residents’ phone and internet bills. State programs supplement a similar Lifeline program at the federal level, which provides a $9.25-per-month discount. Oregon recently passed legislation to expand its Lifeline subsidy and offer discounts on devices to low-income residents.
3. ONE-TIME SUBSIDIES: States, including Maryland and South Carolina, have used or plan to use federal funding for short-term affordability programs. These efforts are inherently time-limited and rely on one-off funding streams.4. LOW-INCOME HOUSING INCENTIVES: States like Pennsylvania and Indiana are using the Low-Income Housing Tax Credit (LIHTC) to encourage developers to offer free or subsidized internet in affordable housing units.
5. CONSUMER PROTECTIONS and TRANSPARENCY MEASURES: States such as Arkansas, Virginia, and Tennessee have passed laws to improve pricing transparency and billing practices. These policies aim to empower consumers
to better understand the costs of internet service and avoid excess charges.
This approach may lower costs indirectly.
6. ENHANCED COMPETITION and CONSUMER CHOICE: Some states are fostering competition and affordability by permitting the market participation of municipal broadband providers and cooperatives, as well as investing in open-access, middle-mile infrastructure. Others offer deployment subsidies or regulatory relief to lower provider costs and encourage new entrants
They found…
States pursuing broadband affordability must consider key factors:
• Available state resources, such as fiscal and institutional capacity
• Local market landscape, including providers and their offerings
• The time horizon of affordability needs
• Positions of key political, industry, and consumer groups
• Implementation strategies for enrolling households and managing program
outreach