Wednesday, December 30, 2020

Broadband Rescue

 

The $900 billion pandemic relief bill passed by Congress on December 22nd and signed by President Trump five days later, includes $7 billion for broadband programs.  Approximately half of the total, $3.2 billion, will fund an emergency broadband benefit program wherein internet service providers (ISPs) will temporarily discount internet service to eligible households by as much as $50 per month.  (Details of the program will be spelled out in FCC regulations, expected to be released within the next 60 days.)

The focus on broadband is late, but better late than nothing at all.  According to an October 2020 Pew survey, approximately 70 percent of the workforce is now working from home.  (This compares to 20 percent before the coronavirus outbreak.) Many children and young adults, from elementary school to college, are, at least partially, learning virtually.  Without available and affordable connectivity for all, the digital divide enlarges gaps in income (wealth), education, and hope.   

According to the FCC’s 2020 Broadband Deployment Report, 94.4 percent of the U.S. population has access to fixed terrestrial (cable, fiber, DSL) broadband (25 Mbps download and 3 Mbps upload).  By geographical density, broadband deployment is 98.5 percent in urban areas, 77.7 percent in rural areas, and 72.3 percent on tribal lands.  At the state level, broadband deployment is as high as 99.2 percent in New Jersey and as low as 78.7 percent in Arkansas.

According to the Census Bureau’s 2019 American Community Survey (ACS), so pre-covid, nearly 93 percent of U.S. households have a computer in their home and 77.3 percent subscribe to a wired broadband service (includes cable, fiber, DSL, and satellite).  Again, there is quite a bit of variation by state.  In New Jersey, over 82 percent of households have a wired broadband subscription, compared to just 60 percent in Arkansas.  

The variation in access and usage is even greater at the county (and city) level.  For example, in the state of Pennsylvania, 95.4 percent of households have access and nearly 77 percent subscribe to fixed terrestrial broadband.  However, in the low income, sparsely populated (rural) area of Sullivan county, less than 70 percent of households subscribe to a wired broadband service.  Why?  Lack of access and financial means.  By contrast, in Montgomery country, which is more densely populated (suburban) and wealthier, broadband usage jumps to nearly 85 percent.  Why? Abundant access and financial means to subscribe.  The county of Philadelphia tells a slightly different story.  Broadband availability exceeds 99 percent, yet less than 70 percent of households have a broadband subscription.  Why? A simple matter of affordability for the monthly service (and a computing device).

 

 

 

Broadband Subscription (%)

No Internet Subscription (incl. cellular plan) by HH Income

 

 

No Computer in HH (%)

Cable, Fiber, DSL

Satellite

Total Wired

All Income Groups

< $20K

$75K+

Median HH income ($)

US

7.1

70.8

6.5

77.3

13.4

35.6

4.3

       62,843

New Jersey

6.4

78.6

3.7

82.3

10.5

34.9

3.3

       82,545

Arkansas

13.8

51.6

8.4

60.0

26.5

49.8

10.8

       48,952

Pennsylvania

9.3

72.5

4.4

76.9

14.1

35.3

4.1

       61,744

Sullivan

16.7

60.4

8.5

68.9

25.3

54.9

13.6

       47,407

Philadelphia

13.9

64.6

4.4

69.0

22.9

43.9

6.3

       45,927

Montgomery

6.7

82.4

2.1

84.5

10.3

34.1

3.0

       91,546

Source: 2019 American Community Survey, U.S. Census Bureau

By race, broadband subscription was highest among whites (90.1 percent) and lowest for Blacks (83.9 percent),    and native Americans (77.9 percent).  By education level, broadband subscription was highest in households with a bachelor’s degree (95.5 percent) and lowest for those without a high school diploma (72.6 percent)

Will the broadband benefit program help low-income families in counties such as Sullivan and Philadelphia alike?  Absolutely!  But, when the money runs out and the program expires, what then? How can we sustain making broadband accessible and affordable for all?

 

Sources:

https://www.pewsocialtrends.org/2020/12/09/how-the-coronavirus-outbreak-has-and-hasnt-changed-the-way-americans-work/

https://arstechnica.com/tech-policy/2020/12/50-per-month-emergency-broadband-subsidies-approved-in-pandemic-stimulus/

https://broadbandnow.com/

https://data.census.gov/cedsci/

https://www.fcc.gov/reports-research/reports/broadband-progress-reports/2020-broadband-deployment-report

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