Smartphones with 4G and 5G capabilities provide users the same essential Internet connectivity functions as tablet devices. And smartphones are extraordinarily popular for accessing the Internet – especially for low-income households, for younger Americans, and for education-related uses. The FCC ought to treat smartphones as eligible connected devices for the Emergency Broadband Benefit (EBB) program.
The Commission is now preparing rules to implement EBB program, which will enable eligible households to receive broadband Internet services and connected devices at discounted prices. The EBB program is intended to help out Americans who have been hit hard by the COVID-19 pandemic and lockdowns. Under the EBB program, broadband providers who provide Internet access and connected devices to eligible households can receive reimbursements from a $3.2 billion fund established by Congress. Section 904 of the Consolidated Appropriations Act of 2021 authorized the Commission to implement the EBB program.
Apparently, there has been some question within the Commission about whether smartphones provided to eligible households should be considered "connected devices" for purposes of discount reimbursements under the Act. According to Section 904(a)(4) of the Act, a "connected device" means "a laptop or desktop computer or a tablet." The Act provides no further guidance regarding the meaning of those terms. But the Commission has discretionary authority to interpret the term "tablet" to include "smartphone."
In its 2020 Communications Marketplace Report, the Commission cited 2019 estimates that over 106 million households have smartphones – of which nearly 93 million households subscribe to mobile data plans. It cites surveys indicating smartphone population penetration rates of 80% to 85% at the in 2017 and 2018 – a number that surely is higher in early 2021. The report also cited a 2019 survey indicating that smartphone-only Internet users are particularly popular among lower-income households, and especially for young people and for educational uses:
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In addition to being widely used for accessing the Internet, there is no meaningful distinction between smartphones and tablets regarding broadband-related capabilities. Both are portable and both feature the same or similar apps as well as voice, HD-or-better video, and high-speed Internet connectivity. At the very least, the Commission has discretion to interpret the Act's term for "associated equipment" to include smartphones. Indeed, many Americans use smartphones as hotspots in order to connect laptops and tablets to the Internet.
By making smartphones eligible devices for EBB reimbursements, the Commission can help ensure that the program serves its purpose in helping Americans in difficult circumstances access school work, apply for jobs, receive telehealth services, and engage in other important life activities. In fact, smartphone inclusion in the EBB program could give a boost to those Americans who now are the most in need.
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