The U.S. Federal Communications Commission approved a $9.25 broadband subsidy per month on Thursday. This fund will help the many millions of Americans in the low-income bracket to enjoy home internet connection.
The FCC pushed for the approval of the subsidy to bridge the digital divide currently existing in U.S. households.
Currently, one in five Americans has no access to home broadband service while the vast majorities who have internet connection are poor. According to FCC, approximately 40 percent of those earning less than $25,000 annually can pay for broadband service while those earning more than $150,000 per year are connected to high-speed internet at home.
With a vote of 3 to 2, the subsidy effectively becomes a part of the transformation of an existing fund called Lifetime Program. Broadband internet will be treated by the government agency as a public utility,
Households are increasingly realizing their need for high-speed internet as a tool for accomplishing homework, job searches and in doing basic household chores.
With the approval of the subsidy, "Americans can access the dominant communications platforms of the day," stated Tom Wheeler, F.C.C. Chairman.
Approximately 40 million U.S. citizens will benefit when the subsidy starts rolling out soon. These are the households that depend on food stamps, Medicaid and a variety of federal assistance.
They can use the subsidy to pay for broadband service on a standalone basis with no voice plan attached or as part of a voice bundle on cellular or fixed networks. According to federal officials, among those who are eligible for this subsidy, 13 million are without internet service at present.
This sector of society can now enjoy affordable broadband service that only their wealthier peers were able to afford.
On Thursday's meeting, the agency also acted on a proposal to establish the nation's first broadband privacy rules. These regulations will enable consumers to choose whether Comcast and AT&T could gather and share information about their subscribers.
