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Study: Affordable Connectivity Program More Than Paid For Itself

A new study by The Brattle Group found that the FCC’s Affordable Connectivity Program (ACP) generated more savings for taxpayers than it cost. Healthcare savings generated by the low-income program alone more than offset its annual burden to taxpayers, undermining claims that the program was dismantled as an act of fiscal efficiency.

The ACP, part of the 2021 infrastructure bill, provided 23 million low-income households a $30 broadband discount every month. It provided a larger $75 a month discount for low-income residents of widely underserved tribal areas.

The ACP also provided low-income Americans a $100 subsidy to help them afford a laptop, tablet or a desktop computer.

Generally viewed as a rare bipartisan success story, the ACP took direct aim at a primary problem across U.S. broadband: affordability.

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House Speaker Mike Johson holds his hand flat out jutting out as he speaks to a crowd

But the program was unceremoniously allowed to expire in 2024 after GOP leaders including House Speaker Mike Johnson refused to even bring funding bills to the House floor for a vote, despite widespread support from industry, consumer groups, and even then Republican Ohio Senator JD Vance.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

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Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.

Blueprints for BEAD: What We Can Learn From the Low-Cost Option That Was, Then Wasn’t, Then Was Again

Blueprints for BEAD is a series of short notes and analysis on nuances of BEAD that might otherwise get lost in the volume of material published on this federal funding program. Click the “Blueprints for BEAD” tag at the bottom of this story for other posts.

Few people dispute the vital importance of affordability in closing the digital divide. A 2021 Pew Research Center survey found that nearly half of all people without broadband cited cost as a barrier, with 20 percent listing cost as the primary reason for not subscribing to broadband service.

Research from EducationSuperHighway pegged that number even higher, estimating that lack of affordability explained about two thirds of the remaining digital divide in the country.

As the Broadband Equity, Access, and Deployment (BEAD) program steams ahead, questions about affordability have come to the fore. After all, deploying tens of thousands of miles of new fiber is only half the equation. BEAD will help build the physical networks necessary to connect the millions of households that still lack access to high-speed Internet service, but will it make a difference if they still can’t afford a plan? This possibility is all the more likely in light of the Affordability Connectivity Program’s (ACP) untimely demise.

Image
Empty Wallet

BEAD’s low-cost plan requirement sought to ease such concerns about affordability. To ensure households with limited financial means would actually see the benefits of the program’s massive infrastructure investment, this requirement mandated that all networks built using BEAD funds offer a low-cost plan for eligible subscribers.