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The money will focus on affordability, adoption and access to broadband
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AT&T will tout its low-income Access from AT&T service
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The company supports 37 Connected Learning Centers across the country
AT&T today said it’s committing an additional $3 billion by 2030 to help close the digital divide in the U.S., focusing on affordability, adoption and access to broadband for lower income people. This will bring the company’s total commitment for these things to $5 billion since 2021.
First, everyone is anticipating that the federal government won’t refund its Affordable Connectivity Program (ACP), which is due to wind down soon. ACP offers a $30 per month broadband subsidy to more than 22 million subscribers across the U.S.
AT&T says it will continue to offer its Access from AT&T service, which is a $30 per month home internet service available to eligible limited-income AT&T Internet and AT&T Fiber households. AT&T has offered Access since 2016.
"We’re also working with customers enrolled in the ACP to find the solution that’s right for them," said an AT&T spokesperson.
The company also offers low-income discounts for its prepaid mobile services Cricket and AT&T Prepaid. And it plans to expand the discounts to other, forthcoming mobile services.
AT&T is already doing things to address digital literacy and adoption of broadband. It has created 37 Connected Learning Centers (CLCs) in community centers across 15 states. The CLCs are equipped with high-speed internet connections and computers supplied by Dell. The CLCs help people learn how to do things such as use search engines and email so they can accomplish tasks like paying bills, applying for jobs and submitting college applications.
The AT&T spokesperson said the company expects to have increased its CLC count to 50 by this summer.
Since 2021, AT&T has also expanded network coverage on tribal lands by more than 40%, and the company has opened CLCs on the Rincon and Pinoleville Pomo Nation reservations in California and the Cherokee Nation Tribal land in Oklahoma.
In addition, AT&T offers discounted wireless solutions to more than 135,000 public and private K-12 schools, colleges and universities.
“Connectivity is critical for success and prosperity in America today. Whether it’s a first-generation high school graduate applying for college, a veteran accessing telehealth services, or a grandparent connecting with their family thousands of miles away — we want to help unlock greater possibility for the millions of people who remain unconnected,” said AT&T CEO John Stankey in a statement.
Today’s news about the extra $3 billion may also include some network infrastructure builds.
AT&T today said that since 2021, it has won competitive bids for government funding to deploy more high-speed fiber broadband in 12 states.
It also plans to participate in the upcoming Broadband Equity, Access and Deployment (BEAD) program.
In its last earnings call in January, AT&T said it remains on track to pass 30 million consumer and business locations with fiber by the end of 2025.
For the past few years, AT&T has been spending above $17 billion per year in capital expenditures. Some of that capex has gone toward fiber deployments, and much more has gone toward deploying 5G. But it plans to scale its annual capex down to the “mid-teens” billions this year and moving forward.
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