La. Admin. Code tit. 4 § XXI-1701

Current through Register Vol. 50, No. 11, November 20, 2024

Section XXI-1701 - Required Subgrantee Low-Cost Broadband Service

A. GUBMO 2.0 applicants and subgrantees may request a modification to their low-cost service option from the $30 target effective rate as follows.

1. In no case may the offered rate exceed the $65 average rate for comparable service plans in Louisiana as reflected in the 2023 FCC Urban Rate Survey, as adjusted for annual inflation as described below.

2. Modifications to offered rates to a level between $30 and the $65 not to exceed (NTE) level may be granted based on evidence supporting the newly proposed rate:

a. Per-subscriber costs in an area indicating that the target effective rate above would be financially unsustainable; and/or

b. The impact on average revenue per user (ARPU) and total project revenue of the target effective rate above would be financially unsustainable given actual or projected subscriber adoption patterns.

i. If a modification request is granted, the new modified level shall remain the maximum Not to Exceed offered rate for the provider for the duration of the federal interest.

B. All subgrantees must offer to eligible households at locations included in a subgrant award a low-cost broadband service option as follows:

1. an end-user effective rate of $30 per month for a service offering of 100 Mbps downstream, 20 Mbps upstream, and a minimum latency of 100 milliseconds.

2. GUMBO 2.0 applicants and subgrantees may request modifications to this rate based on evidence of financial non-viability, but the rate must always be at or below the initial $65 not to exceed level, subject to adjustment for inflation as provided below;

3. is available to all households eligible for the Affordable Connectivity Program or a successor program as modified by congress;

4. the rate specified or subsequently modified, as well as the other provisions identified in this section, for this service option will be a contractual requirement of awardees for the duration of the federal interest, as specified by NTIA;

5. in the event that the FCC during the period of this obligation revises the federal definition of broadband to a performance level that is higher than the 100/20 standard required currently for BEAD, that new federal definition shall become the required performance standard;

6. allows the end user to apply the ACP benefit to the service price and encourages customers to participate in the ACP or successor program(s);

7. the specified price may be adjusted once per year based on the to the consumer price index, up to a maximum annual upward adjustment of 3.0 percent or the prior year level, as defined by the U.S. Bureau of Labor Statistics, beginning with an adjustment in the first new calendar year after the date of approval of this Initial Proposal Volume 2 by NTIA;

8. is not subject to data caps, installation or other nonrecurring charges, surcharges or usage-based performance reductions, and is subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the participating subgrantee must adhere;

9. in the event the provider later offers a low-cost plan with higher speeds downstream and/or upstream, permits Eligible Subscribers that are subscribed to a low-cost broadband service option to upgrade to the new low-cost offering at no cost;

10. to make households within subgrant service areas aware of the availability of the low-cost plan via public awareness campaign activities, as mandated by NOFO IV.C.2.c.iv.

C. Service Initiation Cost

1. Installation fees or any other non-recurring charge may not be assessed for households adopting the low-cost service option.

D. Basic Service Characteristics

1. Providers will be held to performance requirements as established by the BEAD program, with download speeds of at least 100 Mbps and upload speeds of at least 20 Mbps.

2. Provides typical latency measurements of no more than 100 milliseconds.

3. Is not subject to data caps, surcharges or usage-based performance reductions, and is subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the participating subgrantee must adhere.

E. Affordable Connectivity Subsidy

1. Subscribers using the low-cost broadband service option must be ACP eligible or eligible for a successor program enacted by Congress, and must also be permitted to apply the prevailing ACP subsidy amount toward the plan's rate.

F. Ability to Upgrade to New Low-Cost Option

1. The rate specified, as well as the other provisions identified in this section, for this service option will be a contractual requirement of awardees for the duration of the federal interest, as specified by NTIA. In the event that the FCC, during the period of this obligation, revises the federal definition of broadband to a performance level that is higher than the 100/20 standard required currently for BEAD, that new federal definition shall be the required performance standard.

2. In the event the provider later offers a low-cost plan with higher speeds downstream and/or upstream, permits Eligible Subscribers that are subscribed to a low-cost broadband service option to upgrade to the new low-cost offering at no cost.

3. If the provider voluntarily offers other low-cost plans elsewhere in the state of Louisiana, the provider must make the same offer(s) available on identical terms to households associated with all eligible locations included in the BEAD subgrant award.

La. Admin. Code tit. 4, § XXI-1701

Promulgated by the Office of the Governor, Division of Administration, Office of Broadband Development and Connectivity, LR 50, exp. 7/18/2024(Emergency), Amended LR 50515 (4/1/2024).

AUTHORITY NOTE: Promulgated in accordance with R.S. 51:2370.21-2370.33.