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FREE UNIVERSAL

BASIC BROADBAND

A Cost Analysis

What it actually costs to provide every American household

free 100/20 Mbps broadband — wholesale cost breakdown,

deployment ramp, sensitivity, and platform precedent.

An Analytical Framing Document

Jason Robertson

v1.2 · Created May 4, 2026 · Updated May 4, 2026 · Updated May 6, 2026 for v2.26.2 (MIN-1: Path B header note) · Updated May 6, 2026 for v2.26.2 (MIN-1: v2.26 header note)

Ohio · 2026

v2.26.2 update: This document analyzes the Path A architecture (federal subsidy of private internet service providers) which has been superseded by Path B (federal ownership of broadband and cellular infrastructure with companies paying a use fee) per v2.26 and Federal Infrastructure Fee. The cost analysis below remains valid for understanding the comparative economics of Path A and informed the original architectural choice; for the platform's current commitments, consult item 78. The document is preserved for historical context and analytical comparison.

v2.26 update: This document analyzes the Path A architecture (federal subsidy of private ISPs) which has been superseded by Path B (federal ownership of broadband and cellular infrastructure with companies paying an infrastructure fee). The cost analysis remains valid for understanding the Path A vs Path B comparison; for current commitments and the Path B cost architecture, see Federal Infrastructure Fee. The original Path A analysis is preserved here for transparency about the architectural decision the platform made and the reasoning behind it.

Sources Baseline. Numerical claims in this document derive from the canonical sources cataloged in 05_Sources_And_Derivation_Convention.docx, including: FCC residential broadband market data ($111 billion annual market revenue; 120 million subscriber count; average $77 monthly price); BLS labor data for buildout cost projections; Census Bureau household-count denominators. The $48 billion universal-basic-broadband cost figure is derivational from per-household cost projections at scale, with full derivation in the Universal Broadband Access Substantiation.

Executive Summary

If the platform commits to free universal basic broadband (100/20 Mbps to every American household at no cost to the household), the annual federal cost at full deployment is approximately $48 billion. This is well within the Civic Infrastructure pillar's funding envelope and substantially less than the $111B Americans currently pay annually for residential broadband through retail bills.

The Bottom Line Numbers

Metric | Value | Notes
US households (eligible for service) | 132 million | ACS 2024 estimate
Wholesale cost per connection per month | $30 (mid) | Range: $24-43; basic tier 100/20 Mbps
Annual federal cost at full deployment | $48 billion (See Sources Baseline.) | 132M × $30 × 12; mid scenario
Annual cost range (low to high) | $38-68 billion | Sensitivity to wholesale cost
Status quo: current US residential broadband revenue | $111 billion/year (See Sources Baseline.) | 120M paying subscribers × ~$77/mo
Net economic resource savings | ~$63 billion/year (See Sources Baseline.) | Free model is more efficient than paid retail
As % of GDP at full scale | ~0.16% | $30T US GDP
As % of platform's full Sovereign Fund disbursements | ~3% | $48B / $1.5-2T disbursements at Year 30

Why This Costs Less Than the Status Quo

Counterintuitive but defensible: free universal broadband costs the economy less than the current paid system. Three reasons:

Retail-to-wholesale margin elimination. Current retail broadband prices include marketing (5-8% of revenue), customer acquisition (10-15%), churn management (3-5%), billing infrastructure (2-3%), and shareholder returns (15-25% of revenue for incumbent telecoms). Wholesale-to-government provision strips these out: no marketing because no acquisition needed, no churn because everyone is enrolled by default, minimal billing because there's no per-customer bill, no shareholder margin for cooperative or municipal providers. The wholesale cost is approximately 35-50% of the retail price for the same physical service.

Bulk procurement leverage. The federal government as a single buyer for 132 million connections has substantial negotiating leverage that no individual customer has. Bulk procurement across regions naturally pushes wholesale prices toward the lower end of the cost band, particularly when contracts are awarded preferentially to lower-cost providers (rural electric cooperatives, municipal broadband authorities, fiber-only operators).

Universal eligibility eliminates means-testing overhead. Affordability subsidy programs (the predecessor ACP (Affordable Connectivity Program), Lifeline) require eligibility verification, application processing, recertification, fraud prevention, and dispute resolution. Approximately 8-12% of subsidy program costs go to administrative overhead. Universal eligibility eliminates this overhead entirely — every household at every address gets the service automatically with no application or verification.

How This Fits the Platform's Architecture

The free universal basic broadband commitment fits the platform's existing architecture with surprising cleanness. The Civic Infrastructure pillar's broadband component, currently estimated at $15-20B/year for access deployment plus affordability subsidy, expands to approximately $48B/year for free universal service. Total Civic Infrastructure pillar shifts from approximately $270B/year mid estimate to approximately $300B/year mid estimate. This remains within the 0.7-1.1% of GDP envelope established for the pillar.

Funded through the same mechanism as the rest of the pillar: Sovereign Fund disbursements (~55% share, $26B annually for broadband alone), consolidated existing federal spending (~30% share including the existing Universal Service Fund's roughly $8B/year), and state/local cost share (~15%). No new tax revenue required. No sustained additional federal borrowing required. The funding mechanism that supports universal healthcare also supports free universal basic broadband.

“Counterintuitive but defensible: free universal broadband costs the economy less than the current paid system. Retail-to-wholesale margin elimination, bulk procurement leverage, and elimination of means-testing overhead each contribute.”

Per-Connection Cost Architecture

This section breaks down the cost of providing one residential broadband connection at the basic tier (100 Mbps download, 20 Mbps upload, no data caps). Understanding the per-connection cost is what makes the total cost legible.

Capital Expense Components

Capital expense is the one-time cost to build the physical infrastructure connecting a household. Once built, the infrastructure depreciates over its useful life (25-30 years for fiber). Capital expense per connection is amortized over the depreciation period to compute the equivalent monthly cost.

Capex Component | Per Connection | Notes
Fiber drop and last mile (urban/suburban) | $1,200-2,000 | From existing aggregation point to home
Fiber drop and last mile (rural) | $2,500-5,000 | Longer distances, lower density
Fiber drop and last mile (frontier rural) | $5,000-15,000 | Where FWA or satellite displaces fiber
Customer premises equipment | $150-300 | Optical network terminal + router
Service activation and provisioning | $100-200 | Truck roll, install labor
Allocated headend/aggregation infrastructure | $300-800 | Pro-rated central office equipment
Average capital expense per connection | $1,500-2,500 | Weighted across deployment types

Capital expense amortized at 5% interest over 25-year fiber lifecycle: approximately $9-15 per connection per month. This is the equivalent monthly cost of the one-time infrastructure investment, distributed across the connection's useful life.

Operating Expense Components

Operating expense is the ongoing cost of running the network and supporting customers. Unlike capex, opex is a continuous monthly cost that scales with subscriber count and is paid by whoever operates the network. The components are well-understood from telecom industry analysis:

Opex Component | Per Connection per Month | Notes
Network operations and maintenance | $5-8 | Field crews, monitoring, repairs
Backhaul and upstream transit | $2-4 | Per-Mbps cost; declines at scale
Customer support (technical) | $3-5 | Help desk, troubleshooting
Billing and customer management | $0-3 | Near-zero for free service (no bills)
Power, facilities, and overhead | $1-2 | Central office and aggregation point operation
Security, monitoring, abuse management | $1-2 | Network security operations
Total operating expense per connection | $12-24 | Range across operator efficiency

Opex is where free universal service achieves significant savings. Current paid retail service includes substantial billing infrastructure ($2-3/month/customer) and customer acquisition activities ($5-10/month/customer amortized) that disappear with universal automatic eligibility. Cooperative and municipal providers operating without shareholder margin further reduce opex by approximately $5-10/month/customer compared to incumbent telecoms.

Total Wholesale Cost

Combining amortized capex and ongoing opex produces the total wholesale cost per connection per month. Provider margin (the difference between cost and what providers charge the federal contracting authority) is added on top to ensure provider sustainability.

Cost Component | Low Scenario | Mid Scenario | High Scenario
Capex amortization (per month) | $9 | $12 | $15
Operating expense (per month) | $13 | $17 | $22
Subtotal: Provider cost | $22 | $29 | $37
Provider margin (10-15%) | $2 | $3 | $6
Wholesale price to federal contractor | $24 | $32 | $43

The mid scenario at $32/month wholesale is conservative — it assumes typical operator efficiency and a 10-12% margin. Actual contracts with cooperative and municipal providers would likely run lower. The low scenario at $24/month represents what efficient cooperative providers can deliver. The high scenario at $43/month represents incumbent telecoms with legacy cost structures.

Why Wholesale Differs from Retail

Current US residential broadband retail prices average approximately $77/month. Wholesale costs as analyzed above run $24-43/month. The difference between $77 retail and ~$30 wholesale is not provider gouging; it's the cost of operating in a retail market:

What's in retail price but not in wholesale • Customer acquisition costs (advertising, sales commissions, free installation promotions): approximately $12-15/month/customer when amortized across customer lifetime. • Customer churn management (retention programs, win-back offers, billing disputes): approximately $5-8/month/customer. • Brand marketing and competitive positioning: approximately $4-6/month/customer. • Shareholder dividend yield expectations (incumbent telecoms typically distribute 50-70% of net income): approximately $8-12/month/customer for shareholder-owned providers. • Multiple-product subsidization (cable companies use broadband margin to subsidize TV bundles): approximately $3-5/month/customer. • Regulatory compliance and government affairs operations: approximately $1-2/month/customer.

None of these costs are present when broadband is provided as universal Civic Infrastructure. The retail market exists because of the retail market; remove the retail competition layer and the costs that competition produces also disappear. This isn't a unique insight to broadband — the same dynamic explains why public utilities (water, sewer) typically cost households substantially less than equivalent private market services would.

“The difference between $77 retail and ~$30 wholesale isn't provider gouging — it's the cost of operating in a retail market: customer acquisition, churn management, marketing, shareholder margin. Universal Civic Infrastructure provision eliminates these.”

Total Annual Cost at Scale

Per-connection cost analysis multiplies up to the total annual federal cost when applied to all 132 million US households. This section articulates the scaling math, the deployment-type weighting that produces blended cost, and the bounded uncertainty range.

Mid Scenario: $48 Billion Per Year

At wholesale cost of approximately $30/month per connection (the mid scenario), serving 132 million households produces an annual federal cost of approximately $48 billion at full deployment. This is the headline number for free universal basic broadband.

The calculation: 132,000,000 households × $30/month × 12 months = $47,520,000,000/year, which rounds to $48 billion. The $48B figure is presented throughout this analysis as the central estimate. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Range Across Cost Scenarios

Scenario | Wholesale per Connection | Annual Federal Cost | Notes
Low (efficient cooperatives) | $24/month | $38 billion (See Sources Baseline.) | Mostly cooperative and municipal providers
Mid (mixed providers) | $30/month | $48 billion (See Sources Baseline.) | Realistic mix of provider types
High (incumbent-heavy) | $43/month | $68 billion (See Sources Baseline.) | Incumbent telecoms providing service

The realistic range is $38-68 billion annually. The mid estimate of $48 billion assumes a provider mix weighted toward cooperatives and municipal authorities for fiber deployment in served areas, with incumbent telecoms continuing to serve their established service territories at higher cost. As cooperative and municipal capacity expands during the buildout phase, blended cost trends toward the lower end of the range. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Deployment-Type Weighting

The blended cost incorporates multiple deployment types with different per-connection economics:

Deployment Type | Households | Per-Connection Cost | Annual Subtotal
Fiber (urban/suburban) | 95M (72%) | $26/month | $30B
Fiber (rural cooperative) | 20M (15%) | $32/month | $8B
Fixed Wireless Access | 10M (8%) | $35/month | $4B
LEO satellite (frontier) | 5M (4%) | $60/month | $4B
Public WiFi/community access | 2M (1%) | $15/month | $0.4B
Total weighted | 132M (100%) | ~$30/month avg | ~$46B

LEO (Low Earth Orbit) satellite (Starlink, Amazon Kuiper) is the most expensive deployment type per connection — approximately $60/month wholesale because the satellite operator's costs are largely external to terrestrial infrastructure economics. However, satellite serves only the genuinely frontier 4% of households where running fiber is uneconomic at any reasonable cost. The blended cost stays around $30/month because the expensive satellite tier serves so few households.

Why 132 Million Households

Total US household count is approximately 132 million per the American Community Survey. This includes occupied housing units of all types: single-family homes, apartments, condos, manufactured homes, and group quarters. The platform's commitment is to make free basic broadband available at every household address — individuals in shared housing receive service through the household connection rather than per-person.

Some households will have multiple internet-enabled devices and multiple users; the platform's basic tier (100/20 Mbps) is sufficient for the majority of multi-person households' typical use. Households requiring more bandwidth (heavy work-from-home, large families with simultaneous streaming, gaming households) can purchase premium tiers from providers — the basic free tier is the floor, not the ceiling.

Excluded from the 132M count: vacant homes (approximately 12M units that aren't occupied), seasonal/recreational properties, and commercial premises (which remain in the paid commercial broadband market). Mobile broadband is also separate — the free tier covers fixed residential service, not cellular data plans.

Comparison to Status Quo Spending

Current US residential broadband market revenue is approximately $111 billion per year (120 million paying subscribers × average $77/month). Free universal basic broadband at $48 billion shifts approximately $48B of household spending into public funding while eliminating approximately $63B in retail market costs (acquisition, marketing, churn, shareholder margin). The net economic resource impact is substantially positive: total resources consumed delivering broadband service decline, even though more households are served. (Source baseline: see Sources_And_Derivation_Convention.docx.)

What changes for households • Households currently paying $50-100/month for basic broadband: receive free service, no longer pay this bill. Net household savings: $600-1,200/year. • Households currently paying $30-50/month through ACP-style subsidies: receive free service, the affordability subsidy is no longer needed because basic service is free. • Households currently lacking broadband entirely (~14.5 million Americans): receive service for the first time through deployment to currently-unserved areas, free. • Households wanting premium service (gigabit symmetric, business class): purchase premium tier from providers; net household cost approximately $30-50/month for the upgrade above basic.

“Free universal broadband at $48B/year shifts ~$48B of household spending into public funding while eliminating ~$63B in retail market costs. Total resources consumed delivering broadband decline.”

Phased Cost Ramp During Buildout

The $48 billion annual cost is the steady-state figure at full deployment. During the buildout phase (Years 1-7 in the platform's timeline), cost ramps as deployment reaches more households. This section traces the cost trajectory and the funding implications. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Buildout Phasing

Free universal basic broadband applies to a household once that household has deployed broadband infrastructure capable of meeting the 100/20 Mbps service standard. Households in already-deployed areas receive free service from Year 1; households in unserved areas receive free service when deployment completes in their area. The buildout ramp matches the deployment timeline established in the Civic Infrastructure pillar's Phase 1 priorities.

Year | Cumulative Coverage | Household Cost @ $30/mo | Annual Cost | Notes
1 | 55% (already-deployed urban) | Months 6-12 | $13B | Program launch in served areas
2 | 65% | Full year | $31B | Extended urban + suburban deployment
3 | 75% | Full year | $36B | Rural electric cooperative deployments
4 | 85% | Full year | $40B | Continued rural deployment
5 | 92% | Full year | $44B | FWA covering medium-density rural
6 | 97% | Full year | $46B | LEO satellite covering frontier
7 | 100% | Full year | $48B | Universal coverage achieved
8+ | 100% | Full year | $48B | Steady state, ongoing replacement

Year 1 cost is approximately $13B because the program launches mid-year and only covers already-deployed areas. By Year 7, deployment reaches 100% of households and annual cost stabilizes at approximately $48B. This trajectory matches the Civic Infrastructure pillar's overall Phase 1 timeline (Years 1-5 for acute gap closure including broadband completion).

Cumulative First-Decade Cost

Total federal investment in free universal basic broadband across the first ten years (Years 1-10):

Period | Cumulative Cost | Notes
Years 1-5 (Phase 1 buildout) | $164 billion (See Sources Baseline.) | Cost ramping with deployment
Years 6-10 (Phase 1 completion + early Phase 2) | $236 billion (See Sources Baseline.) | Steady state achieved
Years 1-10 total | $400 billion (See Sources Baseline.) | First decade of free universal commitment
Years 11-30 (Phases 2-3 ongoing) | $960 billion (See Sources Baseline.) | Steady state at $48B/year
30-year total federal cost | $1.36 trillion (See Sources Baseline.) | Cumulative across full platform horizon

The 30-year cumulative cost of $1.36 trillion is substantial but bounded. For comparison, the platform's healthcare commitment over 30 years exceeds $90 trillion (~$3T/year), and the Sovereign Education Fund commitment exceeds $30 trillion. Free universal basic broadband at $1.36T over 30 years is approximately 1.5% of the platform's healthcare commitment by total spending — small in the platform's overall scale. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Funding Source Allocation Year-By-Year

During Phase 1 (Years 1-5) the Sovereign Fund hasn't yet reached full disbursement scale. Free universal broadband during this period relies more heavily on consolidated existing federal spending (Universal Service Fund's $8B/year, BEAD (Broadband Equity, Access, and Deployment) funding for ongoing deployment) and modest new federal investment. From Year 12+ when Sovereign Fund disbursements reach full scale, the broadband commitment is supported primarily by Sovereign Fund disbursements within the Civic Infrastructure pillar's allocation.

Funding Source | Years 1-5 | Years 6-12 | Years 13-30 | Notes
Existing federal infrastructure | 70% | 55% | 30% | USF, BEAD, IIJA broadband, etc.
New federal investment (transition) | 20% | 20% | 0% | Bridge funding before Sovereign Fund scale
Sovereign Fund disbursements | 0% | 15% | 55% | Primary source after Year 12
State and local cost share | 10% | 10% | 15% | Federal-state-local matching

“Year 1 cost is ~$13B because the program launches in already-deployed areas mid-year. By Year 7, deployment reaches 100% of households and annual cost stabilizes at $48B. The 30-year total of $1.36T is small in the platform's overall scale.”

Sensitivity Analysis and Stress Tests

The $48B central estimate depends on assumptions about wholesale cost, household count, deployment mix, and provider efficiency. This section tests how the headline cost responds to adverse changes in each assumption.

Stress Test 1: Wholesale Cost 50% Higher

If actual wholesale cost runs 50% higher than the mid estimate — $45/month per connection instead of $30 — annual cost rises to approximately $71 billion. This stress reflects scenarios where incumbent telecoms dominate provider mix more than expected, or where cost reduction from cooperative/municipal expansion proceeds slower than projected. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Stress Test 1 results • Wholesale cost per connection: $45/month (vs $30 mid estimate) • Annual federal cost at full deployment: $71 billion (vs $48B mid) • Total Civic Infrastructure pillar cost: ~$320B/year (vs $300B with mid estimate) • % of GDP at full scale: ~1.07% (vs 1.0% mid) • VERDICT: Within pillar funding envelope. Sovereign Fund can absorb the additional cost. Pillar's 0.7-1.1% of GDP envelope holds.

Stress Test 2: Household Count 10% Higher

If US household count grows 10% over the 30-year platform horizon (population growth, household formation) — from 132M to 145M — annual cost grows proportionally.

Stress Test 2 results • Household count: 145M (vs 132M) • Annual federal cost at full deployment: $52 billion (vs $48B mid) • Buildout ramp adjusted: ~$52B by Year 8 instead of Year 7 • VERDICT: Cost growth tracks population growth. The mechanism scales naturally. Negligible stress on pillar architecture.

Stress Test 3: Deployment Mix Shifts Toward Higher-Cost Tech

If deployment mix shifts toward more LEO satellite (more expensive per-connection) and away from fiber (less expensive) due to workforce constraints or regulatory delays in fiber deployment:

Stress Test 3 results • Satellite share rises from 4% to 12% (frontier expansion + workforce constraint mitigation) • Fiber share drops from 87% to 79% • Blended wholesale cost: $35/month (vs $30 mid) • Annual federal cost at full deployment: $55 billion (vs $48B mid) • VERDICT: Modest cost increase. Satellite as backstop is intentionally part of the architecture. Cost remains within pillar envelope.

Stress Test 4: Buildout Slips 5 Years

If deployment slips behind schedule by 5 years (workforce constraint, permitting delays, supply chain issues):

Stress Test 4 results • Full deployment achieved Year 12 instead of Year 7 • Annual cost ramps slower; $48B/yr not reached until Year 12 • Cumulative first-decade cost: $300B (vs $400B mid scenario) • 30-year cumulative cost: $1.20T (vs $1.36T mid scenario) • VERDICT: Slower deployment paradoxically reduces near-term cost but extends the period during which some Americans lack service. The cost-savings shouldn't be celebrated; the slip causes real harm.

Stress Test 5: Premium Tier Uptake Lower Than Expected

If fewer households than projected upgrade to premium tiers (gigabit, business-class), more households remain on the basic free tier:

This stress doesn't actually affect cost — the basic tier is free regardless of premium uptake. The platform commitment is universal basic; premium uptake is a private market question. Lower premium uptake might affect the broader telecom industry's revenue base but doesn't change federal cost. This is actually a strength of the structural design: federal cost is bounded by household count, not by usage variability.

Combined Stress (All Adverse)

If all adverse stresses combine — 50% higher wholesale cost, 10% more households, mix shift toward satellite, and 5-year buildout slip:

Combined adverse stress • Wholesale cost: $50/month (high scenario + satellite mix shift) • Household count: 145M • Annual federal cost at full deployment: $87 billion • Year of full deployment: Year 12 • Total Civic Infrastructure pillar cost: ~$340B/year (vs $300B mid) • % of GDP at full scale: ~1.13% (vs 1.0% mid; just outside the 1.1% envelope) • VERDICT: Pillar envelope strained but not broken. Cost remains within Sovereign Fund disbursement capacity. The combined adverse scenario is unlikely (requires multiple things going wrong simultaneously) but architecturally absorbable.

None of the stress tests, individually or combined, push the broadband commitment outside the platform's funding envelope. The core architectural insight — that the Sovereign Fund's eventual disbursement scale provides substantial headroom for Civic Infrastructure commitments — holds even under adverse scenarios.

“None of the stress tests push the broadband commitment outside the platform's funding envelope. The Sovereign Fund's disbursement scale provides headroom for Civic Infrastructure commitments even under adverse scenarios.”

Per-Capita Comparison to Other Platform Commitments

Free universal basic broadband at $48 billion/year is small compared to the platform's other major commitments. This section places the broadband cost in context across the full platform architecture. (Source baseline: see Sources_And_Derivation_Convention.docx.)

Per-Person Annual Cost

Platform Commitment | Annual Cost | Per-Capita | Per-Household
Healthcare (universal coverage) | $3.2 trillion (See Sources Baseline.) | $9,700 | $24,000
K-12 Education | $800 billion (See Sources Baseline.) | $2,400 | $6,000
Sovereign Education Fund (post-secondary) | ~$300 billion (See Sources Baseline.) | $900 | $2,300
Universal Mental Health Access | ~$113 billion (See Sources Baseline.) | $340 | $860
Universal Childcare | ~$140 billion (See Sources Baseline.) | $420 | $1,060
Civic Infrastructure (full pillar) | ~$300 billion (See Sources Baseline.) | $910 | $2,270
Free Universal Basic Broadband (subset) | $48 billion (See Sources Baseline.) | $145 | $360
Public libraries (existing) | ~$15 billion (See Sources Baseline.) | $45 | $115
US Postal Service (existing) | ~$80 billion (See Sources Baseline.) | $240 | $610

Free universal basic broadband at $145 per person per year is comparable to the existing US Postal Service ($240/person/year) and substantially smaller than mental health access ($340/person/year). It's a small commitment per capita despite being a meaningful structural addition to the platform.

Why the Per-Capita Cost Is So Low

Two structural reasons broadband is cheap per capita relative to other essential services:

Marginal cost economics. Once fiber is deployed to a neighborhood, the marginal cost of adding one more household connection is small — mostly the customer premises equipment ($150-300 capex amortized) plus a tiny share of network capacity. This is fundamentally different from healthcare, where each person consumes their own healthcare resources independently. Network economics naturally produces low per-capita cost when service is universal.

Infrastructure-not-services nature. Broadband is infrastructure that enables services rather than a service itself. Healthcare cost is dominated by the labor cost of providing care to each person. Broadband cost is dominated by the capital cost of building infrastructure once, then operating it for decades. Capital-intensive infrastructure naturally has lower per-capita cost than labor-intensive service delivery, particularly at scale.

Comparison to Other Free-at-Point-of-Use Services

If the platform commits to free universal basic broadband, it would join healthcare, K-12 education, mental health, and (in the platform's vision) childcare and post-secondary education in the tier of services free at point of use. This tier would represent approximately $4.6 trillion annually in federal commitment at full platform deployment — of which broadband at $48B is approximately 1%.

The structural significance of free broadband is larger than its 1% cost share suggests because broadband is the enabling infrastructure for several other free services. Telehealth requires broadband; without broadband, the mental health pillar's universal access target slips by years. Online education requires broadband; the Sovereign Education Fund's reach into rural areas depends on it. Government services increasingly require broadband; Civic Technology investments depend on universal broadband for full effectiveness.

Free broadband makes other platform commitments more achievable. This is the clearest argument for the structural decision: broadband isn't just one more thing to fund; it's the infrastructure that other things depend on. Funding it as universal Civic Infrastructure rather than as a paid utility removes the affordability barrier that otherwise compromises the universality of services that depend on it.

“Free broadband makes other platform commitments more achievable. Telehealth requires broadband. Online education requires broadband. Government services require broadband. Funding it as universal Civic Infrastructure removes the affordability barrier compromising other services that depend on it.”

Verdict and Decision Implications

This analysis answers the cost question Jason posed: yes, the platform's funding model can support free universal basic broadband at approximately $48 billion per year, with the cost growing with population and shrinking with provider efficiency. The funding mechanism is the same architecture supporting other Civic Infrastructure components and other free-at-point-of-use platform services. The structural decision — whether to commit to free at point of use or to remain at the v2.3 framing's access plus affordability subsidy commitment — is now a clear choice with quantified implications. (Source baseline: see Sources_And_Derivation_Convention.docx.)

What Free Universal Basic Broadband Costs

Cost summary • Annual federal cost at full deployment: $48 billion (mid estimate, range $38-68B) • Per capita: $145/person/year • Per household: $360/household/year • As % of GDP: 0.16% • As % of platform Sovereign Fund disbursements at Year 30: ~3% • 30-year cumulative federal cost: $1.36 trillion • Net economic resource impact: positive ($63B/year less spent than current paid system)

What This Adds Relative to v2.3 Framing

The v2.3 Civic Infrastructure framing committed to universal broadband access plus affordability subsidy at approximately $15-20 billion annually. Free universal basic broadband expands this commitment to $48 billion annually — an additional $28-33 billion per year that goes to providing the basic service free to all households rather than just affordability-subsidizing it for low-income households. (Source baseline: see Sources_And_Derivation_Convention.docx.)

The expansion is approximately the same scale as several other Civic Infrastructure components (Civic Technology at $10-15B, Public Spaces at $20-30B). It's not a small commitment, but it's a commitment within the established pillar architecture rather than something that requires new architectural work to support.

The Structural Argument

Three reasons free universal basic broadband is structurally coherent with the platform:

Platform pattern alignment. The platform treats universal participation in modern life as the test for free at point of use. Healthcare, mental health, and K-12 education are free at point of use because they enable participation. Broadband meets the same test — it enables telehealth, online education, government services, remote work, and civic participation. Treating it as a paid utility puts it in the wrong tier of platform commitments.

Cross-pillar enabling. Several of the platform's other free-at-point-of-use commitments depend on broadband to deliver their universality. Mental health's telehealth-based workforce capacity multiplier requires universal broadband. Sovereign Education Fund's reach into rural areas requires universal broadband. If broadband has an affordability barrier, the universality of these other commitments is compromised. The simplest solution is removing the affordability barrier from broadband entirely.

Economic efficiency. Free universal provision is more economically efficient than the current paid retail system. Total resources consumed delivering broadband decline from approximately $111B/year (current US household spending) to approximately $48B/year (universal wholesale provision plus voluntary premium tier purchases). The retail-market overhead disappears. The platform has been arguing throughout that the Sovereign Fund + universal services architecture is more economically efficient than the current arrangement; broadband is a clear demonstration of that argument.

The Counter-Arguments

Honest engagement with counter-arguments:

Variable usage suggests pricing. Some households use far more bandwidth than others; price signals normally manage this differential. Counter-counter: the basic tier (100/20 Mbps) sets a usage floor sufficient for typical household needs. Households requiring more bandwidth pay for premium tiers, which retains usage-based pricing for variable consumption above the floor. The free commitment is to the floor, not to unlimited usage.

Disrupts existing private market. Current private ISPs would lose approximately $48B/year in basic-tier residential revenue. Counter-counter: ISPs retain premium tier revenue (~$30-50B/year) and continue providing the actual service to all households as federal contractors. The disruption is to the retail-margin layer of the industry, not to the actual service provision. ISP workforce, capital, and operational expertise remain employed; the difference is who pays the bill.

Crowds out premium investment. If basic service is free, providers may invest less in network upgrades because the marginal customer pays less. Counter-counter: contracts with providers can require continued infrastructure investment as a condition of federal payment. Universal service contracts have historically required network maintenance and expansion; the same mechanism applies here. Premium tier revenue still incentivizes upgrades because faster premium service is what customers pay for.

Other utilities aren’t free. Water, electricity, natural gas are universally accessible but billed. Why should broadband be free? Counter-counter: water is partially free in many places (drinking fountains, public access) and the platform could plausibly argue for similar treatment of broadband (free basic, paid premium parallel to free public water access plus paid private water service for high-volume users). The platform doesn't argue all utilities should be free; it argues services that enable participation in modern life should be free at point of use, and broadband meets that test more clearly than water (which has industrial and irrigation uses beyond personal participation).

The Decision

The cost analysis supports the structural decision but doesn't make it. The platform's author has architectural authority over whether to commit to free universal basic broadband or to remain at the v2.3 access-plus-affordability framing. Both are defensible commitments; the question is which better fits the platform's broader architecture.

If the decision is to commit to free universal basic broadband (Path A) • Update v2.3 Civic Infrastructure framing to include free-at-point-of-use commitment as the broadband architecture. • Adjust Civic Infrastructure model: broadband component shifts from $15-20B/yr to $48B/yr. • Adjust pillar total: from $215-325B/yr (mid $270B) to $248-373B/yr (mid $300B). Still within 0.7-1.1% of GDP envelope. • v2.4 Universal Broadband Access Substantiation operationalizes the free-at-point-of-use commitment with full implementation analysis. • Platform's free-at-point-of-use tier expands to include broadband alongside healthcare, mental health, K-12 education, post-secondary education, childcare.

If the decision is to remain at access-plus-affordability framing (Path B) • v2.3 Civic Infrastructure framing remains as built. Broadband component stays at $15-20B/yr. • v2.4 Universal Broadband Access Substantiation analyzes both options in depth and recommends one as the substantive policy commitment. • Platform's free-at-point-of-use tier remains as currently defined (healthcare, mental health, K-12 education, eventually post-secondary, eventually childcare). • Affordability subsidy successor to ACP closes the affordability gap for low-income households without making basic service universally free. • Decision deferred to v2.4 substantiation work.

Either path is defensible. The cost analysis demonstrates that affordability is not the barrier to Path A; the barrier (if any) is the structural design preference for what counts as free at point of use. That's a judgment call for the platform's author to make based on architectural intuition, not on cost feasibility.

“The cost analysis supports the structural decision but doesn't make it. Both paths are defensible. The barrier to free universal broadband (if any) is structural design preference, not cost feasibility.”

Jason Robertson

Ohio, May 4, 2026