PCCA Journal|3
rd
Quarter 2015
35
still have not adopted broadband Internet services at home.
Several prominent studies by Pew and the FCC have strongly
suggested that broadband adoption rates in urban and rural
communities are largely associated with incomes levels and
the high cost of broadband services. While the broadband
penetration rate is over 90 percent nationwide among house-
holds making over $50,000 a year, that figure drops to 68
percent for homes bringing in $30,000-$50,000 a year, and to
less than half in households making under $30,000.
Key Provisions of the
Broadband Adoption Act of 2015
• The bill directs the FCC to establish a broadband Lifeline
Assistance program that provides low-income Americans
living in rural and urban areas with assistance in subscrib-
ing to affordable broadband service.
• The proposal would require the FCC, in calculating the
amount of support, to routinely study the prevailing mar-
ket price for service and the prevailing speed adopted by
consumers of broadband service.
• The bill is technology neutral to promote competition from
broadband service providers under the program.
• The bill allows eligible consumers to choose how they
would like their Lifeline support—whether for broadband,
mobile, basic telephone services, or a bundle of these ser-
vices. The bill clarifies that eligible households will qualify
for only one lifeline support amount for one of those func-
tions, not for multiple purposes.
• The bill requires the FCC to establish a national database
to determine consumer eligibility for Lifeline and to pre-
vent duplication.
• The bill encourages the FCC to consider providing a prefer-
ence to participating broadband service providers that
include components involving digital literacy programs as
part of their offerings.
Verizon, AT&T Support Lifeline
Following the introduction of the Broadband Adoption Act of
2015, Peter Davidson, Verizon senior vice president, federal
government relations, released the following statement:
“Verizon supports efforts to reform, modernize and add
accountability to the Lifeline program, and the bill introduced
by Representative Matsui and Senators Murphy and Booker
Continued on page 36
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