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AT&T pledges $2bn to low-cost broadband initiatives to close digital divide

Telecom giant AT&T has announced a $2 billion initiative to expand affordable broadband access in the U.S. over the next three years.

Telecom giant AT&T has announced a $2 billion initiative to expand affordable broadband access in the U.S. over the next three years.

On Wednesday, U.S. telecommunications giant AT&T announced a sweeping pledge of $2 billion toward low-cost broadband and other community re-investment initiatives over the next three years. The investment program aims to help close the American “digital divide” between households, neighborhoods and regions with reliable internet coverage and those that lack it.

“We believe that broadband connectivity is essential for all Americans,” AT&T CEO John Stankey said in announcing the investment push on Wednesday. “Our broadband networks rose to the challenge of the pandemic in part due to policies that promoted private sector investment in multiple technologies and networks. AT&T is investing in and expanding the reach of our broadband networks while also advocating for effective and sustainable public policies that help close this country’s digital divide.”

AT&T has committed to expanding its affordable broadband offering through existing low-cost programs, and the FCC’s Emergency Broadband Benefit program. The company currently offers discounted wireless solutions to more than 135,000 public and private K-12 schools and universities, and has increased its support over the last year to address education inequality for the estimated 17 million U.S. students nationwide, in low-income and rural households, who do not have internet connectivity.

The company also hopes to expand its Access from AT&T program, a five-year-old program which provides qualifying households with wireline internet service at $10 or less per month, building upon the existing framework with help from government policymakers to ensure sustainable funding.

Additionally, AT&T notes, eligible customers will be able to temporarily reduce monthly broadband costs by applying for the Federal Emergency Broadband Benefit, administered by the FCC, which will also more than 30 million eligible households to receive an additional subsidy of up to $50 per month. EBB can be applied to home internet services or wireless plans.

Last week, AT&T joined nearly 50 advocacy organizations, companies, and non-profit groups setting out guiding principles for Congress and the Biden Administration as it debates specifics for the American Jobs Plan. The company says it “urged policy makers to enact sustainable, effective broadband policies that have proven to build the most resilient broadband networks, create jobs and empower opportunities for all Americans.”

“We tip our hat to Acting FCC Chairwoman Jessica Rosenworcel for her leadership in making the Emergency Broadband Benefit available to more than 30 million households,” Stankey said. “The EBB is a great first step in addressing affordability in the short term. We continue to encourage Congress to work on more permanent solutions with sustainable funding so that all Americans can have access to affordable broadband.”

In partnership with employees and local organizations, AT&T announced that will launch 20 AT&T Connected Learning Centers in 2021, located in traditionally underserved neighborhoods where residents face barriers to connectivity, and equipped with high-speed fiber internet, Wi-Fi, and resources for devices like laptops and tablets. The centers will have access to content from WarnerMedia (which AT&T owns) and virtual learning tools from collaborators like Khan Academy.

News of AT&T’s initiative was widely lauded by community and advocacy groups.

“The COVID-19 pandemic has laid bare the broadband challenges we have been fighting to resolve for years,” said Marc Morial, President & CEO of the National Urban League. “We applaud AT&T’s recent efforts to ensure that all people – and especially historically unserved and underserved communities — can access affordable, reliable broadband internet.”

Will Townsend, senior analyst with the technology consulting firm Moor Insights & Strategy, added: “The digital divide in America is real and the challenges are being magnified during the pandemic. Many have to scramble to find Wi-Fi hotspots to support critical activities such as telemedicine sessions and distance learning.  I applaud AT&T’s efforts to bridge the connectivity gap with incremental investments and subscriber subsidies, as well as no-cost educational content through its WarnerMedia division.”

“As we work to remedy existing gaps in internet access and overcome the challenges associated with connecting every single American to broadband service, we celebrate the efforts of AT&T and others working hard to help close the digital divide,” said Linda Ng, National President of OCA-Asian Pacific American Advocates. “This kind of sustained industry engagement will be indispensable for getting families, students, educators, and others in communities with the most urgent need online.”

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