The Digital Divide

Creating a Connected State

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Too many North Carolinians lack access to an internet connection, cannot afford an internet subscription or do not have an adequate device. Many also lack the skills to take advantage of digital services like telehealth, online education or online job boards. The state's plan aims to close the digital divide by addressing:

  • Infrastructure and access
  • Digital literacy
  • Digital devices

The nearly $1 billion in federal American Rescue Plan funds (and $30 million in state funds) invested in this plan must be spent by the end of 2026. North Carolina is also participating in the federal Broadband Equity, Access, and Deployment (BEAD) program, part of the Infrastructure Investments and Jobs Act, to fund high-speed internet infrastructure projects to connect remaining locations across the state. 

AmountPurpose
$967 millionTo rapidly build crucial infrastructure in unserved areas to give internet speeds of 100/20 Mbps to households (with the ability to handle future speeds of 100/100 Mbps)
$50 millionTo create awareness and support digital literacy and skills training to participate in the digital economy

An additional $15 million would cover administrative and operational costs to supplement existing state administrative capacity to support high-speed internet efforts. The plan also will require significant private sector investment. 

As North Carolinians in every corner of the state can get, afford and use high-speed internet, they can take advantage of job, education and health opportunities. That can drive the state's economy.

This vision is possible by achieving three goals:

  • Raising the percentage of North Carolina households with access to high-speed internet
  • Raising the percentage of North Carolina households with computers
  • Raising the percentage of North Carolinians who have digital skills

Infrastructure is a major challenge, affecting both rural and urban areas in of the state. North Carolina has the second largest rural population in the country, along with hard-to-reach areas in our mountains and challenging topographies in our coastal areas. 

Thanks to the vision and leadership from Governor Stein, former Governor Cooper and the N.C. General Assembly, North Carolina has made tremendous strides over the past several years in connecting our remaining households and businesses across the state to high-speed internet. With the appropriations for nearly $1 billion in broadband infrastructure through the American Rescue Plan Act (ARPA) from our general assembly and the dedication private investments from broadband providers in the state, we are getting closer to closing the infrastructure access gap.

Through this investment, we can rapidly build crucial infrastructure in unserved areas to give internet speeds of 100/20 Mbps to households (with the ability to handle future speeds of 100/100 Mbps).

We appreciate our partners' participation in these crucial programs to create a more connected and resilient state. 

ARPA Funding AllocationAmount
GREAT Grant Program$380 million
  • Upgrades and expands existing last-mile grant program to invest in future-proof technologies and connectivity speeds of at least 100/20 Mbps
  • Provides competitive grants for high-speed fiber connections, wherever feasible, supplemented by fixed wireless and satellite options where fiber is infeasible due to cost or geographic features
  • Relies on comprehensive mapping fabric and cost-modeling to use state resources more efficiently
Pole Replacement Program$100 million
  • Provides funds for pole replacements
  • Reimburses broadband service providers for eligible pole replacement costs in underserved areas
Broadband Mapping$1 million
  • Paints a paint a better picture of each community’s unique challenges and needs with more accurate data
  • Helps NCDIT design the necessary strategies and direct funding and grants to achieve affordable broadband access and digital literacy for all
Completing Access to Broadband Program$400 million
  • Creates a partnership between each county and NCDIT for a competitive bidding process to build infrastructure and provide service to unserved/underserved areas within each county
  • Provides opportunity to mutually identify eligible areas
  • Includes an NCDIT RFP template and process
Stop Gap Solutions$86 million
  • Provides targeted grants to address local infrastructure needs and connect underserved households with children and/or elderly (65+) not likely to get fiber for 3-4 years.
  • Includes funding to address tower deployments, support upgrades to state property in support of private, fixed wireless deployment, pole replacements in support of major broadband projects, as well as devices for underserved households. Solutions would be deployed in the interim period between planning and project completion to connect high-need areas.

Affordability is a barrier to low-income households. The FCC's Affordable Connectivity Program, which provided eligible, low-income households a monthly discount on internet service, has ended.

Without additional funding from Congress, the Federal Communications Commission (FCC) could no longer administer the program. It was fully funded through April 2024. 

Having broadband access does not mean being able to use it. By investing $50 million, the state is improving awareness and enable more North Carolinians to utilize the benefits of high-speed internet through programs aimed at accessing the digital economy (e.g., education, job seeking, telehealth).

Funding has been allocated as described below.

AllocationAmountFY22FY23-25
Awareness and Digital Literacy$50 million$12.5 million$37.5 million
  • Grants funding for broad-based awareness campaign with targeted community-based efforts and digital literacy offerings.