ISPs seeking government handouts try to avoid offering low-cost broadband

Enlarge (credit: Getty Images | Yuichiro Chino)

Internet service providers are eager to get money from a $42.45 billion government fund, but are trying to convince the Biden administration to drop demands that Internet service providers offer broadband service for as little as $30 a month to people with low incomes.

The Broadband Equity, Access, and Deployment (BEAD) program was created by a US law that requires Internet providers receiving federal funds to offer at least one "low-cost broadband service option for eligible subscribers." The Biden administration says it is merely enforcing that legal requirement, but a July 23 letter sent by over 30 broadband industry trade groups claims that the administration is illegally regulating broadband prices.

The fund is administered by the National Telecommunications and Information Administration (NTIA). The NTIA is distributing money to states, which will then distribute it to ISPs. Before obtaining money from the NTIA, each state must get approval for a plan that includes a low-cost option. Nearly half of US states have already gotten approvals.