Comcast to Offer Free Internet to Lower Income Households

The plan is part of Comcast’s “Internet Essentials” program.

First, the cable and entertainment company reviewed the market:

It showed that approximately 30% of Americans do not subscribe to high-speed Internet service at home. About 7% of them live in rural communities that don’t have broadband infrastructure built, but about 23% live in areas where the service is literally available on the street in front of their homes. It was that 23% we thought we could do something about. The research also told us there are deeply entrenched barriers to broadband adoption that would be challenging to overcome. The number one barrier by a mile is digital literacy and a lack of the perceived relevance and value of Internet service. This is followed by the cost of computer equipment and the cost of home Internet service. These barriers also correlate with a number of complex socio-economic factors, including income, education, and race.

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And then its solution:

Comcast will include up to six months of complimentary service for any new family that has not yet applied for Internet Essentials. Families who are approved for Internet Essentials between August 4th and September 20th, 2014 will receive up to six months of Internet service. We’re doing this because there is no more important back to school supply than Internet service at home. In today’s classrooms, as well as in the workforce, students need to be digitally ready.

In addition, we announced an amnesty program for low-income families who could qualify for the Internet Essentials program, but have a past due balance with Comcast. If customers have an outstanding bill that is more than one year old, then as long as they meet all the other eligibility criteria, they can apply to the program and we will provide amnesty for that back due bill for the purpose of connecting to Internet Essentials. If customers’ outstanding bills are less than a year old, however, then we would like them to settle that debt with us before they can be eligible to apply for the program. We are willing to work with families whose debt is reasonable enough that that they could pay us back in installments.

It is unlikely that the need these households have is restricted to the “back to school” period. Comcast’s own research shows the importance of the service to the families who want it:

In addition, we have conducted our own consumer research, and we have learned a lot about what customers think about having Internet Essentials.

98% said they would recommend the program to friends and families.

97% said they use the service so their kids can do homework.

90% said they were satisfied with the program.

82% said they use the service every day or almost every day.

The cost to provide the service permanently is almost certainly very low for Comcast. It admits the barriers to change these factors are “challenging to overcome.” So, why doesn’t it extend the period indefinitely?

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