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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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