Bridging the digital divide: Where the US stands in its broadband journey

The telecommunications landscape has undergone a dramatic transformation over the past three decades. What were once separate, single-purpose analog networks for voice, data and video have converged into a modern digital landscape. 

This shift, spurred by the Telecommunications Act of 1996, reshaped competition and broadband investment in the telecommunications marketplace and led to programs like the E-Rate provision to ensure digital connectivity for all K-12 schools and public libraries. 

In the first two decades following the 1996 Act, many service providers focused their digital service efforts in areas where they could gain the most profit rather than the most subscribers. This happened as technology evolved and e-connectivity became increasingly fundamental to economic and social prosperity. 

The result is more than 22% of Americans in rural areas and more than 27% of Americans in Tribal lands lacking reliable and affordable high-speed connectivity, as compared to just 1.5% of Americans in urban areas. This digital divide became even more apparent during the COVID-19 pandemic, as remote work and schooling became the norm and unserved and underserved communities struggled.

That brings us to where we are today — well underway with the Broadband Equity, Access, and Development (BEAD) program established by the Infrastructure Investment and Jobs Act (IIJA) and issued by the National Telecommunications and Information Administration (NTIA) in 2022. This groundbreaking initiative is pouring an unprecedented $42.45 billion of funding into states, the District of Columbia (DC) and five territories to bring affordable, reliable high-speed Internet service to all Americans. 

We sat down recently with Blair Levin, a leading policy analyst, to take a closer look at where the country stands with what he outlines as the three critical steps to broadband success: 

• Deploying networks everywhere

• Getting everyone connected 

• Leveraging networks to improve social and economic outcomes 

Deploying networks everywhere: A work in progress

The BEAD program is making significant strides. NTIA expects to approve all initial proposals by the end of 2024 and release 20% of allocated funds to eligible states and territories. Final proposals are due no later than one year after initial proposal approval, and once approved, NTIA will distribute the remaining 80% of the funds. 

The BEAD program requires states and territories to provide plans connecting 100% of locations, providing all Americans with connectivity that meets the FCC definition of high-speed. Levin says the BEAD program is a primary solution to addressing the first critical step of deploying networks everywhere, and he’s confident that will ultimately be achieved.

“Most BEAD-funded networks likely won’t be operational until 2026 to 2028, and there may be some high-cost geographic areas that will need to use satellite or fixed wireless,” he said. “But at the end of the day, we will build the networks, and all Americans will have an option.”

Connecting the unconnected: Affordability and adoption 

The phrase “build it, and they will come” has become indicative of the idea that once built, new broadband infrastructure will lead to conquering the second critical step — getting people connected. 

While the pandemic spiked demand for high-speed internet access, affordability for low-income Americans remains a crucial challenge. The end of the Affordable Connectivity Program (ACP), which provides broadband subsidies to about 23 million homes and is unlikely to be extended by Congress, recently shed more light on this issue. 

“We don’t yet know the number of people who will be permanently or periodically disconnected by virtue of ACP ending. However, support for the operational expense of new broadband networks is directly related to how many people actually pay for it. And that’s largely a function of how the government subsidizes connectivity for low-income households,” explained Levin. 

“Providers will charge based on maximum profit rather than the maximum number of subscribers, typically around 70 to 80 percent. Providing affordability for low-income households could get us to 90 percent," he added. 

While Levin regards affordability and digital literacy as critical factors in connecting everyone, he’s ultimately hopeful. “Many didn’t think we needed Gigabit connectivity, but in the third of the country where we built it, people came. I’m confident that a considerable proportion of the population will pay for broadband — it’s essential and not that expensive relative to other household expenses,” he said. 

“But as a matter of social justice, I believe we need to get everyone connected. Every kid in America should have internet access in the home.”

Leveraging broadband for a brighter future

The most essential principle in broadband success is how the country as a whole can benefit from closing the digital divide. But when it comes to leveraging built broadband networks to improve outcomes in health, education, job skills training, housing and urban development and other human services, Levin believes the country is still behind where we need to be. 

“The government is committed to delivering certain goods and services to all Americans, and broadband is a way of doing that much more effectively and at a lower cost,” said Levin. 

While COVID taught us that healthcare can and will be increasingly delivered online, Levin says we’re not quite there with education and skills training — something he sees as more critical than ever due to emerging technologies like AI.