Assessing Broadband Affordability Initiatives

Abstract

The advent of ACP provides a unique opportunity to rethink our approach to broadband affordability initiatives. Rather than replicating a faulty subsidy model originally developed during the Reagan administration for landline telephones, Congress should adopt a tailored, data-driven program targeting only those low-income households that currently lack broadband service or that are at significant risk of losing access absent a subsidy. Subsidies should be competitively neutral, direct, and portable, with the goal of giving these families greater purchasing power so they can participate in telecommunications markets like any other consumer. ACP should also address other drivers of low-income non-adoption if warranted by the data. With this targeted, market-based approach in place, Congress should shutter the largely duplicative and potentially ineffective Lifeline program and alleviate the pressure that it puts on the Universal Service Fund and consumers.