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What the US can learn from Europe about broadband affordability

Some of the prices for fixed broadband in Europe are low enough to make the average internet-addicted American swoon. Think gigabit fiber for less than $10 per month. No strings or income restrictions.

Thanks to COVID-19, the effects of the digital divide are more pronounced than ever. With broadband affordability high on the agenda, it could, at first glance, seem that Europe has all the answers. This is decidedly not the case. Europe, too, has its own struggles with the digital divide, and it hasn’t cracked the affordability problem across the board. Cheap prices do not always equal broad availability or high bandwidth, and every European country comes with its own baggage and struggles. But look closely at Europe’s success stories and you’ll see there are potential takeaways for the US, which is amid a debate over how to close the digital divide.

Despite the pressures of the pandemic, broadband affordability improved everywhere in the world this past year except in North America, according to the inclusive internet index, which is commissioned by Facebook and developed annually by the Economist Intelligence Unit. Overall, the US tends to rank well in affordability lists (which are an inexact science and use sources tricky to verify), but it doesn’t want to be standing still while the world marches forward.

Within the EU, member states are working toward ensuring every household can be connected to gigabit fiber by 2030, and there are a number of financing initiatives they’re able to take advantage of to keep costs down. Speaking to the European Parliament in October, European Commission President Ursula von der Leyen emphasized that no one should be deprived of broadband for economic or social reasons.

“Greater connectivity is not a luxury — it is a necessity,” she said. “And it is a right for everyone. Every citizen should have access to an affordable fixed data connection. It is a universal service — like receiving post or electricity.”

 

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