Most EBB ISPs Opting Out of Offering Connected Devices
Eighty-nine percent of the 950 ISPs in the FCC’s $3.2 billion emergency broadband benefit program aren't selling connected devices to EBB-eligible households, per the FCC. Experts said in recent interviews it could hurt enrollment efforts. Providers can get $100 for providing a connected device so long as a customer makes a $10-$50 co-payment. Eligible devices are laptops, desktops and tablets.
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Some top telecoms opted not to offer eligible subscribers a connected device yet. AT&T isn't and is “always evaluating” its participation, said a spokesperson. Noting high demand for EBB, the spokesperson emailed that “through the first week of the program, we've had thousands of households sign up.” The FCC tallied 1 million-plus total.
USTelecom is “actively spreading the word to encourage EBB enrollment,” per a spokesperson: “This includes on our website, across social media, as well as by providing materials for our members to similarly promote on their website or share with their community.”
“I don’t believe any of our members are offering devices at this time,” said an NCTA spokesperson, saying many members don’t typically sell devices directly to consumers. Comcast said it's not offering one because “our focus for the near-term is to provide broadband connectivity across a range of options and tiers for as many eligible customers as possible.” New Internet Essentials customers are eligible for a “low-cost computer program,” Comcast said.
“It’s all great if you can give me a cheap service,” said Internet Innovation Alliance Co-chair Kim Keenan. “If I can’t afford the tablet or device, it doesn’t make a difference.” It would make a “huge difference” if companies started offering a connected device, Keenan said, because one of the biggest obstacles to broadband adoption is the inability to afford a device. “Participating EBB providers are not required to offer connected devices as part of the program,” said an FCC spokesperson. “Providers can update their election notice to begin offering connected devices at any time.”
Verizon, which recently came under scrutiny over reports it required customers to upgrade their existing plans to receive the benefit, didn't say why it decided against offering a connected device (see 2105200058). “We are providing EBB against monthly services of home broadband, Unlimited Mobile Smartphone plans, and standalone hotspot/jetpack plans,” emailed a spokesperson. Altice is offering a monthly discount for “any of our broadband plans and associated equipment rental charges,” said a spokesperson.
Opting out could be a business decision, said Sheppard Mullin's Dave Thomas. Providers may see offering a cheaper device as “conflicting with their ability to peddle a $1,200 iPhone,” Thomas said. They are missing an opportunity to add customers, and could benefit from partnering with manufacturers to offer a device, Keenan said. “This is really an all-hands-on-deck kind of problem.”
Some made the decision early on to offer a connected device. Cox made laptop and desktop computers available at a discount through its partner PCs for People (see 2105200004). “They have been in high demand,” said a spokesperson.
Eligible TruConnect subscribers can get an 8-inch Google Play Android tablet with LTE. “We have begun our community and public relations outreach to raise awareness about” EBB, said TruConnect co-CEO Nathan Johnson in a statement. “Government committees,” he said, specifically citing the California Public Utilities Commission “continue to put up roadblocks. Their efforts are actually depriving access to those most in need.”