A federal subsidy approved Thursday could to nearly nothing for some low-income households.
As part of the government’s , which discounts phone service for those at or below 135 percent of , the U.S. Federal Communications Commission agreed to add fixed-broadband service to the program and offer households a $9.25 discount.
In Colorado, there could many takers. CenturyLink and Comcast both offer $9.95 broadband service to low-income users. The subsidy could drop the price to 70 cents per month. But the companies say it is too early to say what future pricing could be. Broadband providers must also join the program, which is expected to go into effect Dec. 1.
For Comcast, Colorado has the highest penetration of subscribers for the plan, which offers and includes a Wi-Fi router, security software and .
Of 80,421 Coloradans eligible, 33 percent use the cable provider’s $9.95 month plan. Nationwide, Comcast’s penetration rate for the same plan is 23 percent in the nearly 40 states where it’s available.
“Comcast has been leading the way in closing the digital divide through our Internet Essentials program, which is the nation’s largest and most comprehensive broadband adoption program,” Comcast spokeswoman Leslie Oliver said.
CenturyLink offers also $9.95. The company also participates in the service.
Most broadband providers aren’t part of Lifeline. But the FCC created a path to get them verified and approved, said Mark Wigfield, an FCC spokesman.
“Once they are accepted into the program, they can accept Lifeline (users) and have to pass through the $9.25 they receive as a discount to the consumer,” he said.
Speeds must be “what a substantial majority of consumers receive,” or currently 10 mbps down and 1 mbps up. Providers must offer at least 150 GB of data per month. The FCC set the program’s budget at $2.25 billion. Future goals include adding mobile broadband service.
The broadband industry supported the FCC’s move. In a statement citing the FCC’s efforts to increase administrative efficiency and a national verification system, US Telecom CEO Walter McCormick said, “We applaud the FCC’s modernization of the Lifeline program.”
Tamara Chuang: tchuang@denverpost.com or visit
