The FCC is calling on Congress to renew internet subsidies for low income families. The commission claims millions could be at risk of losing their internet connection without these funds.
Nationwide internet access has always been an issue, but has gotten more important with the explosion of online only entertainment and other network-consuming applications. CNN says:
Millions of Americans risk losing internet access or may face higher internet prices by as early as April if Congress does not quickly approve more funding for a popular federal aid program, the Federal Communications Commission warned on Monday.
In a letter to US lawmakers obtained by CNN, FCC Chairwoman Jessica Rosenworcel wrote that more than 1,700 participating internet providers “may cut off service to households” when existing funding runs out for the Affordable Connectivity Program, an outgrowth of the 2021 bipartisan infrastructure law that gives qualifying low-income households a monthly discount on internet plans.
Internet providers often have local monopoly on internet access, with high prices. The COVID lockdowns showed the importance of the internet for society to continue functioning. Yet, close to 20% of low-income Americans lost their internet connection during COVID.
In 2021, the nonprofit EveryoneOn, which helps underserved communities gain internet access, found that among households making $50,000 or less annually, 18% lost their access during the coronavirus pandemic “because of difficulty paying their internet bills.” Among lower-income and poorer middle-income households, EveryoneOn found that 40% said they couldn’t afford to pay anything for high-speed internet subscriptions, and 22% felt they could comfortably pay $25 per month.
The FCC says that it’s difficult to predict how many will lose their connectivity without the benefit, “as well as how many of the 1,700 service providers may choose to cut off households that are no longer in the program.” But it suspects “the likely number will be in the millions, given the growing demand of the program.”
The growth of satellite and 5G wireless internet is shaking up the industry, but both are not accessible everywhere yet. They are also slower than fiberoptic cables, though are fast enough for many consumers. Cord-cutting strategies, where consumers eschew cable television for easily cancellable streaming, is another way to lower joint cable-internet bills.
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