FCC, tech companies launch cheap Internet program

{mosads} Under the program, Internet service providers will offer eligible families two years of high-speed Internet access for $9.95 per month. Participating companies include Cablevision, Cox Communications, Mediacom and Time Warner Cable. Comcast is offering a separate low-cost Internet option through its “Internet Essentials” program.

To qualify, families must have a school-age child enrolled in the free school lunch program. 

According to the FCC, the offer covers between 15 million and 25 million Americans, and is a $2.5 billion commitment from the cable companies if all the eligible families take advantage of it.

Redemtech, a technology refurbishment company, will also offer a $150 used desktop or laptop computer to each of the eligible families. The computers will come with Windows 7 and Microsoft Office installed and will meet a set of minimum specifications for processing power and hard-drive space.

Starting early next year, Microsoft will offer a new computer for $250 to the families.

Genachowski acknowledged that some families might still not be able to afford the up-front cost of buying a computer. 

“Even with these offers, there are school-lunch-eligible families for whom $150 or $250 doesn’t fit into their budgets,” he said.

Morgan Stanley has promised to offer a finance program to help families afford to buy the computers.

In total, the program represents a $4 billion commitment from private companies.

Josh Gottheimer, the special counsel to Genachowski who spearheaded the partnership, acknowledged that the offer will not cover the millions of Americans who lack high-speed Internet access but do not have school-age children. In particular, he noted that about 20 million senior citizens are not online.

But he said the program is an “unprecedented first step” at closing the broadband adoption gap.

When asked what happens after the two-year offer expires, Gottheimer said, “We’re hopeful that everyone involved will see this as a win-win for consumers and for those companies involved. And hopefully this is something that will be around for a long time.”

This post was updated at 3:04 p.m.