I recently wrote a blog about the new legislation approved in New Mexico that will fund a low-income program similar to the now-defunct federal Affordable Connectivity Program (ACP). The New Mexico program provides a subsidy of up to $30 per month to help qualified households afford a home broadband connection. The new LITAP program is being funded by a monthly surcharge of around $1.50 added to telephone, VoIP, and cellular bills.
State legislatures across the country are recognizing that good broadband adoption is vital for a robust economy and have tackled or are considering plans to make broadband more affordable.
In June of last year, the Oregon legislature passed HB 3148, which strengthens support for low-income broadband customers. The legislation increased the monthly subsidy for low-income households for broadband from $10 to $15 per month. On Tribal lands, the subsidy is increasing to $40. When added to the federal Lifeline subsidy, residents get a total reduction of broadband bills of $24.95. The program also allows a one-time subsidy of $100 to help low-income households buy a computer or tablet.
Like in New Mexico, the Oregon program is funded through the Oregon Telephone Assistance Program (OTAP), which is funded from the existing Residential Services Protection Fund (RSPF) that is supported by surcharges on retail telecommunications bills. All ISPs in the state are required to participate in the plan.
California also has a new low-income broadband plan. The California LifeLine Home Broadband Pilot Program is a three-year program designed to make home broadband more affordable. The program officially launched on January 26 of this year.
The California program offers a $20 discount for qualified homes to help pay for standalone broadband. The subsidy is $30 if used for a bundle of broadband and telephone service. The program also covers up to $39 to cover the installation cost of enrolling with an ISP. The California program is also funded by surcharges on customer bills through the California Lifeline program.
The Connecticut legislature also passed legislation that implements a plan in reaction to the end of the federal ACP plan and that creates affordable broadband for qualified low-income households. Connecticut took a different approach from the other states and is mandating that ISPs offer at least one affordable plan for low-income households.
The Net Equality Program requires ISPs to offer a broadband plan to eligible households for a rate of $40 that must deliver speeds of at least 100/5 Mbps for the first year of the plan and 100/20 Mbps after that. The plan goes into effect this month on a voluntary basis and becomes mandatory for ISPs by October 1 of this year. The $40 rate can be adjusted annually by the rate of inflation. The program is administered by the Office of Consumer Counsel.
If Congress is unwilling to tackle broadband affordability, then states will have to step up. I have to think other states are discussing the topic, and I’d love to hear from folks about other efforts.