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People Most Likely to Benefit From Connectivity Are Least Likely to Have Broadband; New Report Urges Steps to Reach Near-Universal Broadband Access

WASHINGTON—People with the fewest resources stand to benefit the most from broadband connectivity, but the most effective subsidy program to bridge the gap between low-income consumers and broadband—the Affordable Connectivity Program (ACP)—is set to run out of money by 2024. A new report from the Information Technology and Innovation Foundation (ITIF) calls on Congress to support deployment to underserved areas and bolster adoption rates by sustaining ACP funding as part of an overall push to get offline Americans online.

“The people most likely to benefit from Internet access are those least likely to have a broadband subscription,” said Jessica Dine, a policy analyst at ITIF and author of the report. “Allowing low-income consumers to miss out on connectivity perpetuates the socioeconomic divide. For broadband access to help bridge this divide, we need to defray the cost of service on the consumer's side. The ACP is well designed for this because it gives money directly to consumers to buy the plan that best suits them, provides eligible consumers with free or low-cost broadband plans, and has bipartisan support.”

The report explores the economic impact of broadband access as well as how having access to online versions of institutions democratizes the process of acquiring resources and cuts out ancillary costs like commutes and extra time spent on paperwork. ITIF breaks down the unique benefits of specific online institutions, including e-government, telehealth, and online social safety net programs.

According to the report, the U.S. digital divide is largely driven by low adoption rates among subsets of the American population, some of which are caused by surmountable barriers to access. ITIF recommends the following broadband policies to address these barriers and to improve data collection on connectivity:

  • Sustain ACP funding.
  • Build economic impact analyses into broadband funding programs.
  • Survey households on the impact of remaining offline.

“Policies that aim to get offline groups online are necessary for everyone to reap the benefits of broadband,” said Dine.

Read the report.

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The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.

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