ISPs are fighting to increase the price of broadband for low incomes

A new government initiative is trying to encourage internet service providers (ISPs) to offer lower prices to low-income customers by spreading government funds through the states. The only problem is that the ISPs don't want to give the proposed prices.

found a letter sent to US Commerce Secretary Gina Raimondo signed by more than 30 broadband industry trade groups such as ACA Connects and the Fiber Broadband Association and several state-based organizations. The letter raises “both a sense of dread and urgency” about their ability to participate in the Broadband Equity, Access and Deployment (BEAD) program. The newly created BEAD program provides more than $42 billion to “expand high-speed Internet access through financing, infrastructure, deployment and acquisition programs” in states across the country, according to the (NTIA).

The money first goes to NTIA and is then distributed to the states after getting approval from NTIA for introducing a low-cost broadband internet option. An ISP industry publication says the $30 per month fixed rate for high-speed Internet access “doesn't take into account the economic reality of deploying and operating networks in high-cost, hard-to-reach areas.”

The letter encourages NTIA to review the level of low-cost service options proposed or approved to date. have completed all phases of the BEAD program.

Americans pay an average of $89 a month for Internet access. New Jersey has the highest bill at $126 a month, according to a study by . A 2021 study from the study found that 57 percent of households with an annual income of $30,000 or less have a broadband connection.