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Cable firms offer low-cost service to poor

Published: November 9, 2011 10:19 PM
By Cable companies said Wednesday they will offer Internet service for $9.95 a month to homes with children eligible for free school lunches.. The offer will start next summer and is part of an initiative the Federal Communications Commission cobbled together to get more U.S. homes connected to broadband.. One-third, or about 35 million homes, don't have broadband. That affects people's ability to educate themselves, and find and apply for jobs, FCC chairman Julius Genachowski said.. In the initiative, called Connect-to-Compete, Microsoft pledges to sell PCs with its Office software suite to low-income families for $250. Redemtech, an Ohio computer information recovery firm, is offering refurbished computers for $150, including shipping.. For families that can't afford those prices, Morgan Stanley is pledging to develop a microfinance lending program.. People are still signing up for broadband, but growth has slowed in recent years. To help address the lack of computer skills, Best Buy Co., Microsoft and nonprofits such as America's Promise Alliance and United Way are promising to support the initiative with training.. All major cable companies, including Newsday owner Cablevision, are standing behind the $9.95 offer, valid for two years.. "Cablevision has long recognized the importance of broadband adoption, particularly for students," said Jim Maiella, a Cablevision spokesman. "We were the first cable provider to join this important effort."  

-- AP

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