ISPs seeking government handouts try to avoid offering low-cost broadband

Internet service providers (ISPs) are seeking to secure funds from a $42.45 billion government program but are resisting requirements to offer low-cost broadband plans for low-income individuals. The Broadband Equity, Access, and Deployment (BEAD) program mandates that ISPs receiving federal funds provide at least one affordable broadband option, ideally priced at $30 per month. However, over 30 broadband industry trade groups argue that this pricing requirement constitutes illegal regulation of broadband rates, which the law prohibits. They claim that the National Telecommunications and Information Administration (NTIA) is improperly pressuring states to adopt this fixed rate, which they argue does not reflect the economic realities of providing service in high-cost areas.

While the law allows ISPs to offer low-cost plans only to eligible low-income subscribers, the industry contends that the NTIA's guidance effectively mandates a specific price point. Many states have already received approval for their plans, which include low-cost options, with 22 states and several territories having their proposals accepted. The lobby groups are advocating for the NTIA to revise these approved plans to align the low-cost service rates with the actual costs of network deployment. The ongoing debate highlights the tension between government efforts to expand broadband access and the financial interests of ISPs.