US: FCC approves broadband subsidy for low-income households

The Federal Communications Commission last week approved a $9.25 monthly broadband subsidy to help millions of low-income households connect to the Internet, in a move aimed at bridging the digital divide.

Three of the agency’s five commissioners voted for the subsidy plan, with two against. The approval, which comes as part of the reform of a fund known as the Lifeline program, is the latest push by the FCC to treat broadband like a public utility. High-speed Internet has become increasingly crucial to households, used for doing homework, finding and maintaining employment, and completing other basic tasks.

The vote ensures that “Americans can access the dominant communications platform of the day,” said Tom Wheeler, chairman of the FCC.

During the agency’s meeting on Thursday, the FCC also moved forward on a proposal to create the first broadband privacy rules that would let consumers choose whether AT&T and Comcast could collect and share data about them.

But the Lifeline vote was the more heavily scrutinized agenda item. Today, 1 in 5 people do not have access to broadband at home, and the vast majority of those disconnected are poor. Only about 40 percent of people earning less than $25,000 a year can afford broadband while 95 percent of all households making over $150,000 have high-speed Internet at home, the FCC said.

Starting in December, those eligible for programs like the Supplemental Nutrition Assistance Program and tribal and veterans benefits will be able to apply for the subsidy. The funds can be used for wireless or fixed-wire broadband. The FCC said it would aim to keep the budget of the subsidy program under $2.25 billion, money that is provided through line-item charges on wireless and Internet bills.

Full content: Business Insider

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