Broadband Subsidy Program Ends But Debate Continues

Four months after the end of a subsidy program for home broadband, individual states are figuring out if and how they can expand access. Meanwhile the debate over the value and impact of the Affordable Connectivity Program (ACP) continues to rage.

The program launched in 2021 as part of a wider infrastructure package. It was available to households earning up to double the federal poverty level or with somebody in a government assistance program.

Under the program, households would get a government-funded discount of up to $30 a month on broadband services and a one-off discount of $100 for a computer or tablet. In some cases Internet providers launched $30 a month services, meaning ACP recipients didn't have to pay anything.

The argument behind the program was that having more people online benefits society as a whole as well as making it easier for people to adjust to the growing trend for services (private and public) to be available online. Funding for the program expired in May.

Adoption Rates Could Slow

CNET now reports census data shows 3.2 million households got Internet subscriptions for the first time in 2022, as did 2.8 million in 2022. Adoption rates were highest among low income households, suggesting the program played a big part. (Source: cnet.com)

Meanwhile Pew reports that around one in four of people who were on ACP plans have either cancelled their broadband since the subsidy ended or plan to do so imminently. The counter argument is that leaves 75 percent who are still able to afford their service without the subsidy. (Source: pewtrusts.org)

Funding Workarounds

Pew also notes that individual states are now exploring measures to get more people connected. Funding rules mean a state can only offer subsidies for broadband service once they've completed expansion projects that mean almost all homes have access to broadband regardless of the cost. This is particularly relevant in rural areas where broadband providers are reluctant to spend money on expanding cabling to sparsely populated locations.

Meanwhile Michael Santorelli, writing for Forbes, questions whether "affordability" is a useful measure for broadband access in the first place. He says many of those not yet online are motivated by reasons other than costs such as not thinking Internet use is relevant to their life, being worried about security and privacy, or having disabilities that make the online experience less usable. (Source: forbes.com)

What's Your Opinion?

Is getting more people online a worthwhile public goal? If so, should it be a state or federal issue? Does it make more sense to target low-income household or those in more remote areas?