TPRC 2024: The 52nd Research Conference on Communications, Information and Inter

Link to paper

Abstract:
The availability of reliable, high-speed internet throughout the United States has been a focus of policymakers for decades, with the need for an expansive broadband infrastructure listed as “the great infrastructure challenge” of the 21st century by the Federal Communication Commission. Federal policy has been implemented to confront this challenge, with investments targeting unserved and underserved regions of the country totaled $50 billion from 2009 – 2017, with $44 billion also spent from 2015 - 2020. Additionally, internet service providers (ISPs) have invested hundreds of billions more in broadband infrastructure, with estimates as high as $102 billion in 2022 alone.

Despite this investment, millions of Americans still need a broadband connection at home. A big reason for this lack of connection is the cost of services. Recent attempts to assist low-income households have included the Emergency Broadband Benefit (EBB) and the Affordable Connectivity Program (ACP). Additionally, Congress allocated nearly $65 billion for broadband programs through the Infrastructure Investment and Jobs Act (IIJA) of 2021, with the majority of funding directed to the Broadband Equity, Access, and Deployment Program (BEAD). A key component outlined in the program’s notice of funding opportunity is that state broadband officials, tasked with implementing the program and distributing billions of federal dollars in new investments, must ensure that “high-quality broadband services are available to all middle-class families … at reasonable prices” for BEAD-funded projects.

However, federal guidelines have never set a benchmark for what “reasonable prices” might mean for residents in each state, and there are no established benchmarks for determining what an affordable level of broadband service would look like throughout the country. Complicating the matter is the federal government’s goal of universal broadband access by 2030, pledging to connect “every resident and small business to reliable, affordable high-speed internet” (The White House, 2023). However, as with previous telecommunications policies, the lack of a precise definition for what “affordable” means hinders achieving the goal of universal, affordable access (Crandall and Waverman, 2000). To advance assessments about affordability, this paper opens the discussion on what publicly available data would be needed related to broadband pricing that could fit within a continuum approach to broadband.