Benton: Affordability Blocks FCC’s Connectivity Goals

WASHINGTON, Nov. 12, 2024 – As federal regulators prepare their latest report on the state of internet access across the U.S., one organization has sounded the alarm on a key issue blocking connectivity for all: affordability.

As the Federal Communications Commission drafts its annual Section 706 report to determine whether “advanced telecommunications capabilities are accessible to all Americans in a timely and reasonable fashion,” the Benton Institute for Broadband & Society argued the FCC must acknowledge affordability as a major barrier.

Benton’s filing – submitted by senior fellow John Horrigan, senior counsel Andrew Jay Schwartzman, and executive editor Kevin Taglang – reminded the FCC of its own statement from earlier this year: “if broadband is unaffordable, it is not effectively available, even if it has been physically deployed.”

In the Section 706 report, Benton urged the FCC to reaffirm its stance, noting “that continuing shortcomings in broadband affordability cause grievous harm to individuals and that advanced telecommunications capability is being not deployed to all Americans in a reasonable and timely fashion.”

Benton highlighted that despite physical broadband deployment, 43 percent of low-income U.S. households in 2024 remain “subscription vulnerable” due to the high cost of monthly internet bills. This vulnerability means that even minor financial shocks or price hikes could force households to cancel their internet service or downgrade to a lower-quality plan. 

The Benton Institute’s survey underscored the depth of the affordability problem, finding that over half (53%) of all respondents find it “very” or “somewhat difficult” to pay for their monthly internet in addition to other household expenses. 

Among low-income households, 34% stated that even $60 per month was too expensive, and 56% say $75 or less was still unaffordable. Yet, half of these households pay more than $60 monthly.

For the many Americans who are already stretched thin, Benton warned that any further price increase could jeopardize their ability to stay connected.