A new government program is trying to encourage Internet service providers (ISPs) to offer lower rates for lower income customers by distributing federal funds through states. The only problem is the ISPs don’t want to offer the proposed rates.
Ars Technica obtained a letter sent to US Commerce Secretary Gina Raimondo signed by more than 30 broadband industry trade groups like ACA Connects and the Fiber Broadband Association as well as several state based organizations. The letter raises “both a sense of alarm and urgency” about their ability to participate in the Broadband Equity, Access and Deployment (BEAD) program. The newly formed BEAD program provides over $42 billion in federal funds to “expand high-speed internet access by funding planning, infrastructure, deployment and adoption programs” in states across the country, according to the National Telecommunications and Information Administration (NTIA).
The money first goes to the NTIA and then it’s distributed to states after they obtain approval from the NTIA by presenting a low-cost broadband Internet option. The ISP industries’ letter claims a fixed rate of $30 per month for high speed Internet access is “completely unmoored from the economic realities of deploying and operating networks in the highest-cost, hardest-to-reach areas.”
The letter urges the NTIA to revise the low-cost service option rate proposed or approved so far. Twenty-six states have completed all of the BEAD program’s phases.
Americans pay an average of $89 a month for Internet access. New Jersey has the highest average bill at $126 per month, according to a survey conducted by U.S. News and World Report. A 2021 study from the Pew Research Center found that 57 percent of households with an annual salary of $30,000 or less have a broadband connection.
This article originally appeared on Engadget at https://www.engadget.com/isps-are-fighting-to-raise-the-price-of-low-income-broadband-220620369.html?src=rss