The Federal Reserve Bank of New York released a report today titled “Digital Equity in the U.S. Northeast, Puerto Rico, and the U.S. Virgin Islands,” which examines broadband cost, speed, and availability in these regions from 2020 to 2023. The study highlights that rural, lower-income, and tribal communities are most impacted by inadequate broadband access, with tribal lands and rural areas experiencing the slowest download and upload speeds.
According to the report, the lowest-cost broadband available can account for up to 2% of median income in certain rural areas covered by the study as well as parts of New York City, including the Bronx, Upper Manhattan, the Lower East Side, and Eastern Brooklyn. In comparison, households typically spend around 3% of their income on utilities.
“Broadband is sometimes so expensive, as a share of median income, that lower-income households may be facing trade-offs between broadband and other monthly utilities,” said Ambika Nair, a community development research analyst at the New York Fed and an author of the report.
The authors also noted discrepancies between internet speeds reported by service providers and those recorded by users through speed tests. This gap is particularly pronounced in Puerto Rico and the U.S. Virgin Islands.
High-speed internet is crucial for accessing services such as telehealth, online banking, benefits enrollment, and homework assistance. However, an estimated 12% of Americans lacked high-speed access in 2021. Legislation like the 2021 Digital Equity Act aims to expand broadband service to underserved populations including rural communities and aging populations. The findings were initially presented to teams from the Northeast and Island regions preparing grant proposals under this legislation to address access gaps.
This report was part of the New York Fed's Community Development efforts focusing on health, household financial well-being, and climate risk.
Contact:
Ellen Simon
(347) 978-3036
Ellen.Simon@ny.frb.org
