FCC Decides High-Speed Internet Access Should Be Affordable for All

The Federal Communications Commission (FCC) recognizes that access the Internet is essentially today’s landline connecting people to the broader world. Accordingly, the FCC decided today that high-speed Internet access should be affordable and accessible to all.

The agency approved a $9.25 monthly subsidy for Internet access to be added to its Universal service/Lifeline programs that help lower-income households who cannot afford telephone service. The rational from the agency commissioners who voted for the subsidy plan is that Internet access should be treated as a public utility now like the phone was 30 years ago.

The vote for the program, which is expected to start in December, was a narrow 3-2 along party lines. However, FCC chairman Tom Wheeler said the move ensures that “Americans can access the dominant communications platform of the day” and its functionality.

High-speed Internet access is crucial today for applying for jobs, managing finances, doing schoolwork, accessing information and countless other tasks (like reading publications like this one) that are now “paperless.” However, Internet access has not become universal in the U.S.

An estimated 20 percent of homes do not have broadband capabilities. While some may be seniors who are still computer-phobic, the majority of those not digitally connected are lower-income households. Only 40 percent of those earning less than $25,000 annually have high-speed access in their residences, so the $9.25 monthly credit may be enough to enable affordability (provided they have a computer!).

The program allows those accepted to use the credit toward wireless, fixed-wire, a bundle with cellular service or other appropriate means. However, the small monthly subsidy would not go far in making faster-speed options, like cable lines, affordable for many.

By some estimates, there are 40 million people in homes that should qualify, based on other government aid programs. Furthermore, more than 13 million people who already qualify for the Lifeline phone discounts but do not have Internet service.

For three decades, the FCC has made telephone service available to low-income and rural users as a critical lifeline. Part of the justification for government support for telephone service affordability was the fact that phone service was essentially a monopoly in a local area.

Started in 1985 to bring phone services to low-income families, the Lifeline program has since incorporated subsidies for mobile phone services. However, that has created a political maelstrom because some households are now using subsidies for both regular and cellular phone service and the program’s costs have skyrocketed at a time when many are eliminating their landline service. Additionally, the original justification that phone service is a monopoly has changed with competition and various phone plan designs.

Concerns over duplicate service, water and lack of oversight reportedly led to two Republican FCC commissioners to vote against the Web-access subsidy. There has been a push for the FCC to appoint an objective administrator to look for billing issues and potential fraud, but that has yet to happen.

Wheeler commented on the digital divide that keeps a significant number of people from participating in the Internet and its benefits. That is why he proposed the measure decided Thursday that high-speed Internet access should be affordable for all.

Written and Edited by Dyanne Weiss

Sources:
FCC: Universal Service
New York Times: F.C.C. Approves Broadband Subsidy for Low-Income Households
Los Angeles Times: FCC votes to make low-income Americans eligible for subsidy for high-speed Internet service
Washington Post: America’s poor can now get cheaper Internet access

Photo by Jeffrey Billings, PVUSD – Creative Commons license