[Advisors] Re: [CommunityInformaticsCanada] [CTCNet-listserv:542] NY Times: F.C.C. Push to Expand Net Access Gains Help

[Catherine Middleton]

I find it very interesting that this story has been framed largely as =
"aren't the cable companies doing a great thing by making it cheaper to =
get online." Comcast did this initially because it was a condition of =
its purchase of NBC. The Connect to Compete website doesn't mention the =
cheap broadband, it is very much a digital literacy initiative. It will =
be interesting to see what impact it has.

http://connect2compete.org/connect-to-compete-overview

Catherine

On 2011-11-09, at 12:08 PM, michael gurstein wrote:

>=20
> -----Original Message-----
> From: ctcnet-listserv@googlegroups.com
> [mailto:ctcnet-listserv@googlegroups.com] On Behalf Of Stephen Ronan
> Sent: November-09-11 4:38 PM
> To: ctcnet-listserv@googlegroups.com
> Subject: [CTCNet-listserv:542] NY Times: F.C.C. Push to Expand Net
> Access Gains Help
>=20
> =
http://www.nytimes.com/2011/11/09/business/media/fcc-and-cable-companies
> -push-to-close-digital-divide.html
>=20
> F.C.C. Push to Expand Net Access Gains Help
>=20
> To sign up some of the estimated 100 million Americans who are not
> online,
> the Federal Communications Commission and private providers are trying
> to
> make broadband Internet access both less expensive and more valuable.
>=20
> On Wednesday, the F.C.C. will announce commitments from most of the =
big
> cable companies in the United States to supply access for $9.99 a =
month
> to
> a subset of low-income households. The low introductory price is meant
> to
> appeal to new customers who have not had broadband in the past.
>=20
> The F.C.C. is billing the initiative as the biggest effort ever to =
help
> close the digital divide. Because no federal funds are being invested,
> the
> initiative relies in large part on the cooperation of private =
companies.
> One such company, Comcast, started offering $9.99 monthly broadband
> service
> to some low-income households this year after promising the F.C.C. =
that
> it
> would do so when it acquired control of NBCUniversal.
>=20
> By enlisting the cable companies as well as a wide range of nonprofit
> groups that will educate eligible families about the low-cost access,
> "we
> can make a real dent in the broadband adoption gap," Julius =
Genachowski,
> the F.C.C. chairman, said in a telephone interview Tuesday.
>=20
> Mr. Genachowski has made broadband deployment and adoption the top
> priority
> of his tenure at the F.C.C. The government estimates that about
> one-third
> of American households, or 100 million people, do not have high-speed
> Internet access at home. Some of those homes simply do not have access
> to
> service, but most do and choose not to receive it, for reasons =
involving
> cost and perceived relevance to their lives.
>=20
> To address the first point, along with the low monthly price, a
> technology
> company will supply refurbished computers for low-income households =
for
> $150; Microsoft will provide software; and Morgan Stanley will help
> develop
> a microcredit program so that families can pay for those computers.
>=20
> To address the second point, job Web sites and education companies =
will
> offer content that will, in theory, make online access more valuable.
>=20
> Eligibility will be limited to those households that have a child
> enrolled
> in the national school lunch program and that are not current or =
recent
> broadband subscribers. About 17.5 million children are enrolled in the
> school lunch program. That limitation is likely to disappoint =
advocates
> who
> would like more affordable access extended to all households.
>=20
> For those households, the $9.99 monthly price will apply only for a
> two-year period. The price is akin to an on-ramp for new customers, =
with
> the hope being that they will decide to pay more for access once they
> have
> had it for a while.
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> The F.C.C. said the initiative would begin in the spring and reach all
> parts of the country in September 2012. It is similar in some ways to
> Adoption Plus, a partnership that was proposed two years ago, but =
never
> carried out, by the National Cable & Telecommunications Association, a
> cable trade group.
>=20
> The participating cable companies - including almost all of the =
biggest
> ones in the country, like Time Warner Cable, Cox and Charter - are not
> expected to sustain a significant financial loss. Broadband service
> normally has a high markup, and the $9.99 price will more than cover =
the
> overhead costs of providing monthly Internet service.
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> The announcement on Wednesday will not include two companies that are
> major
> players in the broadband business, Verizon and AT&T. The F.C.C. is
> reviewing AT&T's proposed acquisition of T-Mobile.
>=20
> Asked why the cable companies were willing to participate, Mr.
> Genachowski
> said he thought they "looked at this and said, this is an important
> national challenge, let's be part of the solution."
>=20
> --
>=20
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