Cheap broadband, PCs aimed at low-income families
— -- The federal government unveils on Wednesday a major escalation of its initiative to get low-cost computers and high-speed Internet service in the homes of low-income students and families.
Cox, Charter, Time Warner Cable and other Internet service providers plan to offer $9.95 monthly broadband service to households eligible for school-lunch aid, and PC refurbisher Redemtech will sell $150 laptops and desktop PCs with monitors.
The initiative is part of a stepped-up effort by the Federal Communications Commission to roll out fast Internet connections to an estimated 100 million Americans who don't have broadband and are in danger of falling behind in a technology-driven economy.
The percentage of Americans who use broadband Internet at home rose to 68% last year, but "a persistent digital divide" continues in rural communities and especially among low-income blacks and Hispanics, says a report from the Commerce Department's Economics and Statistics Administration (ESA) and National Telecommunications and Information Administration (NTIA).
As part of the FCC's Connect to Compete public-private initiative, Microsoft will develop $250 laptops and desktops aimed at low-income students and families, says FCC Chairman Julius Genachowski. Students and families can apply for micro loans to help with the cost. Morgan Stanley will develop a loan program that incorporates local lenders.
"In this difficult economy, we need everyone to be working together on solutions," Genachowski says. "Broadband is a key to economic and educational opportunity and these kinds of commitments to close the digital divide are powerful."
Last month, Genachowski detailed the initiative's plan to increase digital literacy with training at Best Buy stores and libraries, along with online learning provided by Microsoft and Web sites including Monster.com.
The low-cost broadband and PC availability is scheduled to kick off in spring 2012 in 10 to 15 pilot cities, with nationwide availability in fall 2012. The $9.95 monthly service (typical price $35-$40) is good for two years to families with at least one child in free lunch program. They must not have been a subscriber for 90 days and have no outstanding balance with the provider.SO
Redemtech's PCs will be specially designed for first-time users and include preloaded educational and careers content. Both the Redemtech and Microsoft PCs will have Windows 7 Home Premium operating system and Microsoft Office.
The NTIA study finds that only 55% of black households and 57% of Hispanics households use broadband Internet. By comparison, 72% of white households and more than 80% of Asian households do.
A lack of access to high-speed Internet is no longer a key reason why the digital divide persists, NTIA says, as broadband service is available to about 95% of households in the U.S.
Nearly half of those who didn't have broadband access said they have no interest or need for it, while about a quarter said they can't afford the service.
Karen Mossberger, a professor at the University of Illinois at Chicago who studies the issue, said the lack of interest may be a factor among senior citizens, but her studies have shown that low-income families cite high cost as as the principal barrier. "Cost is a really huge factor," she says. "Especially among African American and Hispanic groups."
Other findings from the report:
