In recent years AT&T and Verizon, the nation’s two largest telco Internet providers, have eliminated their cheaper rate tiers for low and mid-speed Internet access, except at the very slowest levels. Each company now charges essentially identical monthly prices – $63-$65 a month after first year discounts have ended – for home wireline broadband connections at almost any speed up to 100/100 Mbps fiber service.

This policy of upward “tier flattening” raises the cost of Internet access for urban and rural AT&T and Verizon customers who only have access to the oldest, slowest legacy infrastructure.

Affordability is the greatest barrier to increased home broadband subscriptions. In the United States, broadband is becoming faster for some households and more expensive for others.

This report from the National Digital Inclusion Alliance (NDIA) takes a detailed look at tier flattening from AT&T and Verizon, digging into monthly rates that users pay and the types of services they obtain from each company. The authors put the numbers side by side and show that those purchasing what used to be the most economical Internet access service are now simply paying higher rates for slow service.

Download the report to see the comparisons and the authors' analysis.

Hillsboro, Oregon, has studied the possibility of investing in high-quality fiber connectivity for residents and businesses since 2014. After considering the pros and cons, this northwest city of 105,000 has decided to move ahead, with spring 2019 as a target launch date of its own Internet access service.

Communications Utility and Beyond

In January, the City Council approved establishing a communications utility, creating a communications fund, and taking the necessary steps to develop a dig once policy in the city’s code. Elected officials had not yet decided if the community would pursue a city-wide network, but wanted to create an environment that would offer future options and encourage private sector partners to invest in Hillsboro.

The city already owns fiber optic resources that it uses for municipal facilities, schools, traffic signals, and other purposes. They plan to use that network as a foundation to expand in order to bring better connectivity throughout the community. With a wider network, Hillsboro hopes to adopt public Wi-Fi, better public safety notifications, and applications for smart-meters for utility services as well as real-time parking and traffic updates.

Keeping it Affordable for All Segments

Hillsboro plans to offer gigabit connectivity at around $50 per month but hopes to provide the same symmetrical service to lower-income households at a lower rate. In addition to equitable access for all income levels in Hillsboro, the city wants to ensure that students have the ability to compete.

“For our students, for our businesses, and for our entire community, we are moving forward now to expand the City’s fiber network to include Internet service,” said Hillsboro Mayor Steve Callaway. “We want to ensure affordable, equitable high-speed access to keep Hillsboro competitive with cities around the world."

The city wants to ensure that network neutrality protections remain in effect in the community for individuals and businesses. Encouraging entrepreneurs and making high-quality access with good customer service affordable for all subscribers are more goals they intend to pursue.

Incremental

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People living at the Arlington Mill Residences in Arlington, Virginia, are on track to obtain no-cost high-quality connectivity this fall, likely through the ConnectArlington network. The initiative is an example of how one local community plans to use its publicly owned Internet infrastructure to reduce the digital divide on its home turf.

The Homework Gap

Within Arlington Mill’s 122 affordable units, live 159 children; approximately half of the residences do not subscribe to an Internet access service. Because homework is increasingly dependent on a child’s ability to work online, kids at Arlington Mills must contend with the problem of finding access to computers and the Internet. For households that do subscribe, no-cost Internet access would free up monthly resources from $50 - $75 per month.

The Department of Technology Services (DTS) and Department of Community Planning, Housing, and Development (CPHD) are collaborating to support the Arlington Digital Inclusion initiative. The initiative will start in Arlington Mills by providing free Wi-Fi to each unit and will eventually move to other properties owned by the Arlington Partnership for Affordable Housing (APAH). As the program moves forward, the city plans to seek out private donations and other grants to reduce the digital divide. The program will also be exploring ways to help residents obtain reduced cost or free devices or computers to take advantage of the high-quality connectivity. APAH has already applied for a 2019 Community Development Fund grant to cover the cost of training and notebook computers for residents.

APAH expects to choose an ISP that will use ConnectArlington, the county's dark fiber network infrastructure.

The network began offering dark fiber services to business customers in 2015, but the infrastructure has been in place since 2012. Arlington took advantage of several infrastructure projects, including traffic control upgrades and other public safety improvements, to expand its fiber footprint. In 2014, Christopher spoke with Jack Belcher, who shared ConnectArlington's backstory, for episode 97 of the Community Broadband Bits podcast....

This is the transcript for Episode 281 of the Community Broadband Bits podcast. Will Rinehart of the American Action Forum in Washington D.C. discusses telecommunications and economics with our host Christopher Mitchell. Listen to this episode here.

Will Rinehart: And I do think that obviously good policy is very very important and that's where you and I agree a lot. You know there's obviously some good policies that can be enacted. There's probably better conversations that could be had in this space and that's also something else that I really do really want to see. You're

Lisa Gonzalez: listening to episode 281 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzales as a research organization. We here at the institute make it a habit to hear all sides of the debate along the way we make connections with people who offer perspectives on policy that differ from ours. We consider these conversations critical as we analyze factors that help us create policy recommendations and resources for local communities. This week Christopher talks with Will Rinehart from the American Action Forum. They got together at the recent broadband community's economic development conference in Atlanta. In this conversation you'll hear the two discuss a variety of topics they talk about the area of telecommunications and economics and the forum's approach. You'll also hear that these different perspectives aren't as black and white as they first appear. Now here's Christopher with Will Rinehart from the American Action Forum.

Christopher Mitchell: Welcome to another edition of the community broadband bits podcasts. I'm Chris Mitchell with the Institute for Local Self-Reliance. Coming to you from Atlanta sitting practically on a runway at the Atlanta airport with Will Rinehart the Director of Technology and Innovation Policy with the American Action Forum. Welcome to the show. Thanks Chris. Thanks for having me. We're at the broadband community's event here. We just had our second panel which is called a blue ribbon panel and general session kind of thing. And you and I are typically brought on as people who have very opposing points of view.

Will Rinehart: [laughs] To...