US Lawmakers Seek Information From Telco's To Decide Broadband Stimulus Aid: Washington Post

Lawmakers are reaching out to telecom giants like AT&T Inc (NYSE: T), Comcast Corporation (NASDAQ: CMCSA), and Verizon Communications Inc (NYSE: VZ) to get a fair estimate of the number of Americans who need broadband stimulus aid, reports Washington Post.

What Happened: As per the Washington Post, the lawmakers are concerned over reports of broadband disconnections in certain constituencies. It is also considering the possibility that companies offering telecom services could raise broadband charges.

These reports have emerged after the Keep Americans Connected Pledge expiry — a voluntary agreement between the telecom operators and Federal Communications Commission, in summer last year.

Legislators are seeking information from the telecom companies about the users whose internet bill payments are lagging. Reps. Frank Pallone Jr. (N.J.), Jerry McNerney (Calif.), and Mike Doyle (Pa.) are asking the telecom giants to gauge their user’s financial condition based on delays or defaults in making the broadband bill payments.

Why Does It Matter: A sizeable sum of $7 billion is held under an Emergency Rebate Program dedicated to offering discounts to low-income Americans. However, the program may not be finalized before February, says the report.

A support package on the broadband aid may be decided using this information and ensure that customers have consistent access to the internet. The WP report also says that the Democratic members were uncertain if these efforts would bear fruit since the Trump administration collected no data.

Since March last year, after implementing lockdown measures, the dependence on the internet has increased dramatically. Many enterprises have adopted a remote work culture allowing employees to work from home. Educational institutions have opted for e-learning by moving their courses online, and students are getting accustomed to virtual classrooms. In all of these cases, unrestricted access to the internet is paramount.

Price Action: On Tuesday, T shares closed 0.42% lower at $28.75, CMCSA closed 2.93% lower at $50.01, and VZ shares ended 0.35% lower at $57.26.