FCC Prepares $75 Monthly Broadband Subsidies For 'High-Cost' Areas

The Federal Communications Commission is paving the way for $75 monthly subsidies to make broadband service more affordable for low-income households in certain "high-cost" areas. From a report: The $75 subsidy will be part of the Affordable Connectivity Program (ACP) that generally offers $30 monthly discounts to people with low incomes. The ACP was created by Congress in late 2021 and implemented by the FCC to replace a previous pandemic-related subsidy program. The ACP already provides $75 monthly subsidies for homes on tribal lands, but not in other areas. The US law that created the ACP lets the FCC make $75 subsidies available in areas where the costs of building broadband networks are higher than average. That's what the FCC did in its action announced yesterday. "The Infrastructure Act specified that the $75 monthly benefit would support providers that can demonstrate that the standard $30 monthly benefit would cause them to experience 'particularized economic hardship' such that they would be unable to maintain part or all of their broadband network in a high-cost area," the FCC said. ACP subsidies are distributed to Internet service providers that enroll in the program and give customers discounts. Comcast, Charter Spectrum, AT&T, Verizon, and other ISPs last year agreed to make $30 plans with download speeds of at least 100Mbps available to eligible low-income households, essentially making the Internet service free when the $30 subsidy is applied.

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