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2021-04-14 2:30 PM - Broadband Survey Results
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Meeting
Date
4/14/2021
Meeting title
Broadband Survey Results
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Webex
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CenterFuse Broadband Feasibility Report <br /> An analysis of recent FCC 477 data shows that there is a direct correlation between household income <br /> and buying a home broadband connection. Only about half(53%) of households with annual incomes <br /> under$30,000 buy broadband. This contrasts sharply with 93% of homes with incomes over$75,000 <br /> buy broadband. There is no clearer evidence that there is an affordability gap for broadband. <br /> There are studies available for those who want to dig deeper into quantitative and qualitativeresearch <br /> into broadband affordability for low-income households. The first was published by the Benton <br /> Foundation and authored by Dr. Colin Rhinesmith.8 The second report is issued by the Quello Center <br /> and is authored by Bianca Reisdorf.9 This report looks at a study conducted in three low-income <br /> neighborhoods of Detroit. <br /> Both reports say that low-income households with a limited budget appreciate the advantage of having <br /> broadband at home but can't fit it into their budgets. They find it difficult or impossible to prioritize <br /> broadband compared to paying rent or buying food. These studies indicate that a big part of the solution <br /> for getting broadband into homes without it is going to have to involve finding a way to pay for the <br /> monthly broadband access. <br /> It's not easy to measure the affordability gap in Ellensburg (or anywhere). Every community has low- <br /> income homes and senior on fixed incomes where affording broadband is out of reach. We know from <br /> talking to the libraries in Ellensburg that there are residents who use the public computers since they <br /> can't afford broadband at home. Probably the best way to quantify the issue in Ellensburg would be to <br /> ask the libraries to give a short survey to people who use the library's broadband. Affordability is not the <br /> only reason why people don't have home broadband. Later in the report we discuss ways to address the <br /> affordability gap. <br /> Comparinz US Broadband Prices to the World <br /> Cable Company of the United Kingdom also tracks broadband prices around the world. The most recent <br /> comparison of prices is from 2020.10 The average price of broadband in the US in 2020 is $50. It's <br /> worth noting that these prices were gathered from advertised prices, and most big ISPs in the country <br /> advertise special prices that expire after a one or two-year period. The price also doesn't include the cost <br /> of a modem or WiFi router. Even using the absurdly low $50 price,the US ranks as the 119th most <br /> affordable out of 206 countries. However, it's worth noting that most of the countries that are more <br /> expensive than the US are either third world countries or island nations. The few exceptions of first <br /> world countries that are more expensive than the US are New Zealand, Norway, and Switzerland. <br /> In that same report, the US looks better when looking at advertised prices compared to advertised <br /> bandwidth. In that comparison the average cost per megabit of speed in the US is $0.26, placing the US <br /> 27th in terms of affordability. However, we know that many ISPs advertise speeds that are faster than <br /> what they actually deliver—but this may be true in other countries as well. We also know that many <br /> 8 Digital Inclusion and Meaningful Broadband Initiatives. https:l/www.benton.ors/publications/digital-inclusion- <br /> and-meaningful-broadband-adoption-initiatives <br /> 9 Broadband to the Neighborhood.https://aapers.ssm.conlsol3/papers.cfm?abstract id=3103457 <br /> 1° Broadband prices around the world. https:llwww.cable.co.uklbroadbandlpricing/woridwidc-comparison! <br /> Page 44 <br />
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