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Expanding Broadband into Underserved Communities

  • John Tusa

    John Tusa

    Industry Partner, Communications & Media

Created at February 15th, 2023

Expanding Broadband into Underserved Communities

I’ve seen countless examples over the years of how the martech industry allows brands to better understand and reach people on their terms. At Acxiom, we call that helping people find their brands. We know that when done right, marketing improves people’s lives in a myriad of ways. I also get to see examples of where marketing and technology, and more specifically the data-driven side of that work, positively impact our larger society.

Despite the well-documented challenges it brings, fast, reliable access to the internet has brought mind-blowing benefits to all of us. Education, entertainment, commerce, and healthcare come to mind, just to name a few. Few, if any, aspects of our lives have not been impacted by the internet. But not all people have access to the vast benefits equally.  

Two reasons jump out – cost and geography, and in many cases, cost due to geography, with perhaps a helping of fear on the side. Say you are one of the 46 million people who live in rural America. You likely have the opportunity to access “high-speed” internet as defined by the dated standards of the FCC. According to the FCC, most of the country has at least one provider, and many have multiple, but that speed may be a fraction of how “high-speed” is defined in more urban areas, where next-gen speeds are common.  

Many of the things urban residents take for granted, such as the ability to stream TV and have unlimited or almost unlimited data, are an internet pipe dream for our rural neighbors. And to add salt to the wound, in part because of a lack of competition, rural internet access has historically been more costly than access in urban areas, in some cases hundreds of dollars a month more. But even in urban areas where it may be less costly, many still find it unaffordable. So, while high-speed internet might be technically available, many may consider it financially out of their reach.

Then came the COVID-19 pandemic. When many schools switched to distance learning during the early days of the pandemic, nearly 30% of all students didn’t have access to broadband internet for distance learning according to a recent Acxiom-sponsored study by the Harvard Business Review. Congress responded with the American Rescue Plan Act (ARPA), which allocated $20 million for programs dedicated to providing greater access to broadband internet including the Emergency Broadband Benefit (EBB), which provided significant incentives for people to pay for internet access.  

Congress updated the EBB program in December 2021 with a longer-term broadband affordability program dubbed the Affordable Connectivity Program (ACP). It appropriated $14.2 billion for the FCC to implement and support transformational changes around broadband access

Implementation support included subsidizing providers to build the necessary infrastructure in underserved areas, making that investment less costly. It also provides direct subsidies to low-income people and those in the vast tribal lands of the U.S. to purchase broadband service and the devices to connect, including computers. The program provided participants with a $30 monthly discount for internet access as well as a one-time $100 discount to purchase a connected device. People who live on tribal lands can qualify for an enhanced tribal benefit subsidy of up to $75 per month. 

Affordable rural access is a game changer, but equally if not more impactful could be what the ACP can do for those in more urban areas. By sheer volume, the biggest impact could be the improved access provided to low-income Americans, many of whom live in urban areas where access has been technically available but perhaps financially unfeasible.

Notice that the billions of dollars allocated with the ACP also were to “support” the changes.  Among other things, think marketing. The assumption at first may have been “if you build it, they will come.” But despite the infrastructure being built and the subsidized opportunities offered, the efforts to get Americans connected to high-speed internet have underperformed. Many simply are not taking advantage of the benefits offered. Reasons include a perception that internet still costs too much.  

In a 2022 speech, Vice President Kamala Harris noted that “half of all the people who do not have high-speed internet say it is because the monthly cost is too high.” That, of course, is true for some but perhaps a false assumption for others once ACP subsidies are factored in. Also, there is the fear or distrust of the unknown. That could be cultural, i.e., fear of the internet itself and all its unfamiliar and confounding wonders and complexities. Or it could also be a concern based on real negative experiences or a belief that switching from one provider to one promising better service could result in hidden fees or worse service.

Here’s where I get excited though, because I get to play a small role in helping people overcome much of this hesitance and help communities access what I know to be life-changing benefits. My team and I work with telecommunications company that are taking a visible leadership role in implementing the ACP, driving transformation – not only in underserved communities but also as the builders of the infrastructure to support future customer experience (CX) needs and present customer expectations.  

By using a data-driven approach, marketing solutions can identify the right audiences and channels to improve response rates, reduce acquisition and CRM costs, and measure efforts and attribution. Marketing promoting the ACP can be finely tuned to the unique concerns and needs of a tightly defined segment of the population who are then more likely to respond to those messages.  

This awareness outreach and education, of course, benefits the business goals of the telecommunications company by building trust in the message and the messenger, but I believe that it has life-changing benefits for the millions of Americans who until now may have been unable or reluctant to pursue the benefits of high-speed internet access. I truly believe that in the United States of America, everyone should have access to affordable, high-speed internet and the benefits that it affords. I’m proud to be working on efforts to do just that.  

To learn more about the Affordable Connectivity Program and how providers can better reach people these subsidies would benefit, contact us at [email protected].

John Tusa

Industry Partner, Communications & Media

John serves as Industry Partner for Communications & Media at Acxiom. He is responsible for client relationship management, client satisfaction and overall account retention and growth for many leading clients in these industries.

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