Telecom fights price caps as U.S. spends billions on internet access
Telecom resists price cuts in $42 billion U.S. program to expand internet The Washington Post
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AT&T, Charter, Comcast, and Verizon Lobby to Weaken Federal Program for Internet Access
Introduction
AT&T, Charter, Comcast, and Verizon are quietly attempting to undermine a $42.5 billion federal program aimed at improving internet access across the United States. They are seeking to block strict new rules that would require them to reduce monthly bills for their poorest customers in exchange for a share of the aid.
State-Level Opposition
In several states, the telecom companies have criticized the proposed price cuts as illegal, leading regulators in California, New York, South Carolina, Tennessee, Virginia, and other states to reconsider, scale back, or abandon their plans to condition federal funds on financial relief for consumers.
Sustainable Development Goals (SDGs)
The lobbying campaign poses a threat to the largest investment in upgrading the country’s internet service in U.S. history. The funds, enacted by President Biden as part of a comprehensive infrastructure law in 2021, aim to provide fast and affordable broadband to unserved areas of America by 2030. This goal aligns with the Sustainable Development Goals (SDGs) and is comparable to the federal campaign nearly a century ago to electrify rural areas.
Concerns about Affordability
Some state and federal officials are concerned that the significant influx of aid may not fully address the issue of affordability, particularly in long-neglected communities. They worry that if Americans cannot afford the new broadband service, the program’s potential impact will be limited.
Telecom Industry Lobbying
The telecom companies have focused their lobbying efforts on the states, which are responsible for distributing the funds. They have threatened litigation and successfully influenced regulators in various states to remove or weaken proposals that would limit monthly bills for low-income households.
Impact on Broadband Prices
Telecom companies have questioned the legality of government attempts to regulate broadband prices under the infrastructure law. They argue that undesirable regulation could lead them to withdraw from the program entirely, jeopardizing President Biden’s goal of providing internet access to communities that currently lack it.
Consumer Advocacy
Consumer advocates argue that the industry is attempting to benefit from federal funding without addressing one of consumers’ longstanding complaints about broadband: high prices. They emphasize that requiring price reductions in exchange for government aid is a standard practice.
Importance of the Digital Divide
The political wrangling surrounding this issue is crucial for the approximately 8.5 million U.S. households and small businesses that still lack access to modern internet connectivity. The digital divide remains a persistent gap, and despite previous government efforts, progress has been hindered by industry lobbying and market complexities.
The Broadband Equity, Access, and Deployment Program (BEAD)
In 2021, Congress established the BEAD program as part of the infrastructure law, providing approximately $42.45 billion in federal funds. While local officials have the flexibility to determine how to allocate the funds, the program includes national parameters to ensure affordability of newly built networks. The Biden administration suggested that internet plans should cost consumers no more than $30 per month, with room for local alternatives.
Challenges and Compromises
Telecom companies and lobbyists have opposed restrictions on pricing for customers served by taxpayer-funded networks. They argue that most providers already offer low-cost plans for needy families and that efforts to tie federal funds to specific pricing changes are illegal. They also highlight the financial challenges of building networks in hard-to-reach areas.
Political Influence and Lobbying
The telecom industry wields significant power and influence, making it one of the most formidable political forces in state capitals across the country. These companies have spent millions of dollars on lobbying efforts to shape policies, including the implementation of the infrastructure law. Their influence extends to federal lobbying as well.
Implications for Federal Broadband Initiatives
The opposition from telecom companies has raised concerns about the future of federal broadband initiatives. The imminent expiration of the Affordable Connectivity Program, which provides monthly subsidies to lower bills for millions of Americans, further underscores the urgency of resolving policy disputes and ensuring continued access to affordable internet.
Conclusion
The lobbying efforts by AT&T, Charter, Comcast, and Verizon to weaken the federal program for internet access have significant implications for bridging the digital divide in the United States. Balancing the need for affordable broadband with industry concerns poses challenges, but it is crucial to ensure that the massive investment in internet infrastructure benefits all Americans.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 10: Reduced Inequalities
- SDG 17: Partnerships for the Goals
The issues highlighted in the article are related to improving internet access and reducing inequalities in access to affordable broadband services. These align with SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. The article also addresses SDG 10, which focuses on reducing inequalities within and among countries. Additionally, SDG 17, which emphasizes the importance of partnerships for achieving the goals, is relevant as it discusses the lobbying efforts of telecom companies.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure
- SDG 9.c: Significantly increase access to information and communications technology
- SDG 10.2: Empower and promote the social, economic, and political inclusion of all
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships
Based on the article’s content, the following targets can be identified:
– SDG 9.1 aims to develop quality, reliable, sustainable, and resilient infrastructure, including broadband networks.
– SDG 9.c focuses on significantly increasing access to information and communications technology, including affordable broadband services.
– SDG 10.2 seeks to empower and promote the social, economic, and political inclusion of all, including ensuring affordable access to broadband for low-income households.
– SDG 17.17 encourages and promotes effective public, public-private, and civil society partnerships to achieve the goals, including partnerships between government agencies and telecom companies to improve internet access.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, the following indicators can be used to measure progress towards the identified targets:
- Percentage of population with access to affordable broadband services
- Number of households and small businesses without access to modern-day connectivity
- Amount of federal funds allocated for improving internet access
- Number of states implementing pricing requirements for low-income customers as a condition for participating in broadband programs
- Amount of lobbying expenditures by telecom companies
These indicators can help assess the extent to which progress is being made in developing infrastructure, increasing access to affordable broadband, reducing inequalities, and promoting effective partnerships.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 9: Industry, Innovation, and Infrastructure | 9.1 Develop quality, reliable, sustainable, and resilient infrastructure | – Percentage of population with access to affordable broadband services – Amount of federal funds allocated for improving internet access |
| SDG 10: Reduced Inequalities | 10.2 Empower and promote the social, economic, and political inclusion of all | – Number of households and small businesses without access to modern-day connectivity – Percentage of population with access to affordable broadband services |
| 10.2 Empower and promote the social, economic, and political inclusion of all | – Number of states implementing pricing requirements for low-income customers as a condition for participating in broadband programs | |
| SDG 17: Partnerships for the Goals | 17.17 Encourage and promote effective public, public-private, and civil society partnerships | – Amount of lobbying expenditures by telecom companies |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: washingtonpost.com
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