December 18, 2015cycCleveland

Charter unveils low-income rate proposal… no surprises, no training

Via a press release yesterday, Charter Communications has finally unveiled the low income broadband rate plan it promises to implement if its proposed acquisition of Time Warner Cable and Bright House Networks is approved by the FCC.

There were no surprises. The plan is exactly what CYC was hearing from Charter staffers months ago, before the merger case was filed — fairly cheap, very fast home broadband accounts for the families of K-12 students plus a limited group of low-income seniors.  From the press release:

  • What is the offer?
    • Charter will offer 30/4 Mbps at $14.99 a month.
    • Eligible customers will also be able to receive promotional video service and phone bundle offerings.
    • The service comes with a modem at no extra cost and free self-install.
  • Who can sign up?
    • Families with students who participate in the National School Lunch Program.
    • Seniors who are 65 and older who receive Supplemental Security Income* program benefits…
  • When will the offering be available?
    • The offer will become available within six months of the closing of the transactions [i.e. the merger].
    • The offer will be fully implemented across Charter’s footprint within three years of close.

There’s no mention in the press release of any plans to invest in marketing, community outreach or training.

CYC and our partners in the Coalition for Broadband Equity have asked the FCC to push Charter to a) extend its proposed low-income plan to serve a broader range of low-income households, and b) agree to spend at least $50 million a year (2.5% of the combined 2014 residential marketing budgets of Charter and Time Warner) to promote the plan through community outreach and training partnerships.

* Please note: Eligibility for seniors is linked to Supplemental Security Income (SSI), not Social Security.  SSI is a Federal income subsidy program for very low income people who are either 65 years or older, or disabled but lacking the work history to qualify for Social Security Disability.  In Cleveland, for example, about 21,000 households received SSI income last year (according to the Census), but it’s likely the majority of those recipients weren’t senior citizens.