An internet price hike may soon be felt as early as May across low-income families in the US as broadband subsidies from the Affordable Connectivity Program dry out.
In a public announcement on Tuesday, the Federal Communication Commission said that it would be cutting back reimbursements for ACP beneficiaries from $100 per device down to $47.
(Photo : John Schnobrich via Unsplash)
Other beneficiaries will have a much bigger discount cut, going from $30 per month reimbursement to just $14.
An average monthly broadband service fee in the US costs around $54, meaning low-income households will have to soon shoulder $40 per month, rather than just $24, to stay connected.
Further decreases in incentives are expected in the following months as the FCC slowly closes down the program after several pushbacks for a budget extension.
As of writing, Congress has yet to approve the White House's $7 billion extended funding for the program.
Over 23 million households, including seniors, children, and people with disability, are estimated to be affected by the subsidy program shutting down.
The commission urged internet service providers to help affected customers "stay connected and mitigate their financial burden by offering to move consumers to low-cost internet service plans."
Also Read: FCC: Millions Could Lose Internet Access if Subsidies Discontinued
Affordability to High-Speed Internet Remains a Problem in the US
Despite the administration's supposed achievements of bringing much faster internet service across the country, access to affordable internet connection remains a challenge for many Americans.
A recent ranking in 2023 placed the US in thirty-second in the world for affordable internet access, surpassed by several European countries, Hong Kong, and Singapore.
This is in contrast to its sixth ranking for the fastest internet speed in the world at 30.68 Mbps upload speed and a latency of 13 ms.
Prices for internet services in rural places are far higher as access to signal towers and service connections are limited to only a few areas.
It did not help that only a limited number of internet service providers are operating in most parts of the US, limiting Americans' options for cheaper alternatives to stay connected.
Related Article: AT&T Outage Highlights US Internet Problem in Affordability, Service, and Solutions
Biden Admin Blames Republicans for Slow Approval of Internet Subsidies
As more Americans are put at risk of losing access to the internet, US President Joe Biden put the blame on Republicans for slowing down the passing of the proposed additional funding.
The Senate bill to pass the budget extension currently has only five sponsors, far from the 223 votes backing the version from the House of Representatives.
It is worth noting that wider access to internet connection has been among the highlights of Biden's reelection campaign against impeached President Donald Trump in the upcoming 2024 US Elections.
