Internet service providers (ISPs) are campaigning against a stipulation in a $42.45 billion government fund that obliges them to offer broadband for as little as $30 a month to low-income individuals. The Broadband Equity, Access, and Deployment (BEAD) program, part of a broader US legislative effort, requires ISPs receiving federal funds to provide at least one low-cost broadband option.
However, a July 23 letter sent by over 30 broadband industry trade groups argues that the Biden administration’s insistence on a $30 price point contravenes the legislation’s prohibition on rate regulation. The National Telecommunications and Information Administration (NTIA), which administers the funds, has approved plans for nearly half of the US states, mandating low-cost options in the approved proposals.
The letter alleges political pressure on state broadband offices to agree to the low-cost service option, violating the legislative intent. The BEAD program is designed to expedite broadband development in economically unfeasible areas, allowing ISPs to profit from network construction projects.The letter also states that the proposed $30 monthly rate does not reflect the economic realities of deploying and operating networks in high-cost, remote areas.
Among those signing the letter are prominent industry lobby groups such as USTelecom, representing AT&T, Verizon, and CenturyLink, as well as numerous groups for small cable firms and rural telcos. Many states have already received approval for their BEAD proposals, and the NTIA recently approved proposals from New Mexico and Virginia, raising the count to 22 states plus several US territories.
The industry groups are calling for the NTIA to retract approvals for state plans that include the $30 rate, urging that the rate be more closely aligned with realistic cost assessments, potentially using the FCC’s Urban Rate Survey benchmarks. For more details, visit the original article.