70% of EBB Households Getting Mobile
Nearly seven in 10 households getting the FCC emergency broadband benefit chose to receive mobile broadband services rather than fixed broadband. Experts said in recent interviews that the trend is likely because most enrolled households participate in Lifeline.
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Nearly 3 million EBB subscribers sought U.S.-subsidized wireless broadband by Aug. 1, compared with about 1.3 million households for fixed broadband, according to Universal Service Administrative Co. Low-income households are more likely to opt for mobile broadband because “access 24/7 is more important than higher speeds,” said New Street’s Blair Levin. This “big difference,” Levin said, tracks with the number of households enrolled in Lifeline and receiving mobile services.
Lifeline providers had a “runner's start” because they had customers eligible for EBB and could hit the ground running “on day one,” said ACA Connects Senior Vice President-Government Affairs Ross Lieberman. More than 60% of EBB enrollees qualified through existing Lifeline participation, so some “may have made their choice to use EBB for more robust mobile,” emailed Free Press Research Director Derek Turner.
The FCC hopes EBB "can provide relief to help struggling households afford the cost of internet service during this crisis,” emailed a spokesperson Tuesday. “EBB is technology-neutral, with fixed, mobile, and satellite providers all participating and providing internet service supported by the program,” she said: “Mobile service is especially important for both rural and non-rural low-income households who tend to rely heavily on this wireless broadband service to get online.”
Wireless service flexibility is “probably a big part” of why more are getting that, said R Street Institute Resident Fellow-Technology and Innovation Jeff Westling. Such low-cost or prepaid services may be “driving more low-income consumers to those services,” Westling said. Having a smartphone or tablet may makes devices affordable, and they connect to the internet, he said. Mobile adoption has outstripped fixed for years, emailed Information Technology and Innovation Foundation Director-Broadband and Spectrum Policy Doug Brake.
The fixed take rate is “low relative to mobile, but that is likely a function of a number of factors that speak more to the program's design,” Turner said. He noted that ISPs choose which of their plans qualify.