poor data collection, outdated infrastructure, and a non-competitive marketplace are the primary points of discussion when it comes to internet affordability and governmental policy. Heavy emphasis from numerous sources is given to creating fiber infrastructure to create affordable internet. Much of the discussion around internet affordability centers on Americans living in rural areas that do not have access to quality internet. The following information surrounding internet affordability in the US is broken down by news and opinion articles, think tank studies and reports, as well as Federal legislation and other resources.
News and Opinion Articles
- Jessica Rosenworcel is a commissioner for the FCC and published an opinion piece on CNN Business called "FCC commissioner: Our agency says all Americans are gaining advanced Internet access. It's wrong." She clearly states that she refuses to offer her support to the FCC's 2020 Broadband Progress Report. Rosenworcel explains that the FCC systematically overstates internet access availability across the US and refuses to consider price and affordability.
- In 2017 an opinion piece was published on The Hill entitled "Democrats promote internet access, but affordability is the big issue." The article addresses and commends the document "A Better Deal: Universal Internet Access" for addressing needed infrastructure for usable internet. Pain points needing attention include the cost of internet services with 33% of American households (in 2015) citing this as their chief barrier to having the internet. Additionally, the topics of monopolies and antitrust laws are front and center.
- In his bid for the presidency, Bernie Sanders outlined his "Green New Deal" which included measures to achieve affordable internet access. Sanders outlines a plan to view the internet as public utility like electricity and that the "greed machine" of large companies like Verizon and AT&T must end. He outlined that he would have provided grants to improve technology installations and overturn at least 19 state laws that allow internet provider monopolies. In addition, he stated that he would regulate these providers require a "basic internet plan" that would be affordable for all citizens.
- An article published in the San Fransico Chronicle highlighted that affordability of the internet is key to having it in all households. The article even claimed that having access to the internet in 2020 is similar to other "human rights." It was highlighted that both Comcast and AT&T hold a duopoly over internet access and that fiber infrastructure is the best course of action to ensure that all in San Francisco have access to affordable internet. The city developed a five-year plan in 2019 to address the internet access issues.
Think Tanks and Organizations
- Cisco reports that affordability is one of the key barriers to internet access. The organization proposes that broadband access be provided as a government utility in order to ensure access to all.
- An article appearing in NC State University's Philanthropy Journal advocates for the provision of community broadband networks. This type of broadband access is roadblocked or otherwise prohibited in at least 22 states across the US. Research shows that residents with municipal/community broadband pay on average 10% less than other internet users.
- The following states have established task forces and offices focused on broadband internet access: Idaho, Louisiana, Minnesota, North Carolina, Oregon, Texas, and Washington.
Reports and Studies
- The Alliance for Affordable Internet produces a yearly report on internet affordability and policy recommendations for improvement. The 2019 report starts off by stating that internet access should not be a luxury. A key to affordability is for the government to establish a competitive marketplace for providers which forces them to innovate and improve. Additionally, policymakers need to push for overall infrastructure improvements.
- Becky Chao, a policy analyst and fellow at the Open Technology Institute, published a report in July 2020 on the affordability of internet access in the United States versus other nations. Her in-depth report and analysis reveals that "U.S. consumers pay the highest average costs out of any region in our dataset."
- The think tank New America, of which Chao is a member, summarized their findings of the data as the cost of connectivity being too high and complicated. The report emphasized the need for the FCC to collect better data on internet cost and availability, citing that there are currently no government agencies collecting price data. This same report also indicates that the government is relying on flawed, self-reported data from ISPs. This includes the provision for reporting theoretical internet access rather than actual connectivity and leads to the overstatement of what is available to the consumer.
- Citing the need for transparency, the report states: "A clear takeaway from our research is that the cost of connectivity is difficult to find and often hidden in convoluted pricing schemes or obscure contract terms. Consumers cannot make informed decisions in this environment. Accordingly, the United States needs better truth-in-billing requirements for internet service." In order to make this happen, the Open Technology Institute has advocated for a "broadband nutrition label" which was approved by the FCC in 2016. The label is voluntary and the FCC has done little to promote or encourage its adoption.
- Other policy recommendations from the New America report include the government expanding lifeline and other low-income internet discounts along with allowing municipal/community networks in every state. The final recommendation is that the government should strengthen antitrust enforcement in the internet services market.
Federal Legislation
- In June 2020, The House of Representatives has presented a bill (HR7302) entitled the "Accessible, Affordable Internet for All Act." The bill has been presented by Congressman James E. Clyburn of South Carolina. The proposal aims to help with post-COVID-19 recovery by implementing a multi-gigabit capable fiber optics cable infrastructure across the US which will be run by a newly formed Office of Internet Connectivity and Growth. The EFF (a non-profit organization that defends digital civil liberties) stands behind this proposal and is actively supporting it.
- The HR7302 bill updates the legal definition of broadband which currently stands at 25 megabits per second of download speed and three megabits per second upload speed. In addition to this, the bill would remove the laws that prevent communities from creating their own broadband networks, thus removing the monopolies held by a few larger telecoms. Among other things, this bill also creates a new fiber network and removes the need for sustaining older, legacy networks which would cost the government more in the long run.
- The House of Representatives passed the "Moving Forward Act" in July 2020 which would allow the FCC to collect pricing data from Internet Service Providers. At this point in time, the Senate has not taken action on the bill. This act "requires the FCC to incentivize widespread adoption of the [broadband nutrition] label."
- In April 2020, several lawmakers and advocacy groups pushed to have affordable internet plans included in the stimulus package.
Communications Workers of America
- The Communications Workers of America have set up a project called "Speed Matters." The project outlines how the US is lagging behind other countries and needs to act now to bring internet access to all citizens by means of National Broadband Plan adopted in 2010.
- The billionaire hedge fund CEO Paul Singer supports this project and has personal ambitions to "destroy AT&T."
Potential Avenues for Further Research
- Our initial research reveals that there are still several avenues left to explore concerning internet affordability and policy. We discovered that three main keys are being discussed by those who recognize the problem of affordability: monopolies, inaccurate data, and laws preventing communities and municipalities from providing their own broadband internet.
- In the time frame allocated, we were not able to give proper consideration to subsidized internet options and policy proposals. We recommend looking into these factors for a well-rounded view of all policies being put forth for consideration.
- The focus of the above research was primarily on the US as a whole. San Francisco was included as an example of a municipality taking policy action to improve the affordability of broadband internet. Information is available for the other states requested (CA, AZ, NV, KS, OK, AR, VA, LA, GA, FL, RI). We recommend looking at some policies implemented by these states and the ones mentioned above in connection with the Broadband Now website as these states have task forces established for affordable internet.
- Due to the plethora of information uncovered we were unable to give adequate attention to researching public speeches, hearing transcripts and interviews of politicians and other policy influencers. It is very possible that these influential persons will echo the same thoughts and intents mentioned above. However, our review of the proposed legislation included in this research brief reveals some novel ideas that make further exploration of this facet worthwhile.