As of 2023, Arkansas' low-cost plan price will be determined by the following formula:

The above formula stipulates that the annual cost of the state's low-cost plan should not exceed 2% of the state's bottom-quintile household income (the upper limit). This value is then divided by 12 to determine the monthly price for the state's low-cost plan.

The term “bottom quintile” refers to the upper limit of the lowest one-fifth of household incomes within a county, as provided by CACS data. The 2% threshold references established research on internet pricing , [FN1] which suggests that it is reasonable for households to allocate this share of their income toward internet expenses.

In accordance with the BEAD NOFO requirements subgrantees are asked to offer this low-cost plan -- inclusive of all taxes, fees, and charges billed to the customer, including upfront and ongoing fees. As bottom-quintile household income data is refreshed by the CACS [FN2], providers may petition ARConnect for a low-cost plan price increase, referring to the formula outlined above and most recent CACS data at time of publication. [FN3] ARConnect will grant petitions to increase LCP prices based on the latest Census Bureau and IRS data.

The broadband service applicants' offer for their low-cost plans must have the following characteristics:

Low-cost plans must allow the end user to apply the Affordable Connectivity Program and Lifeline program benefit subsidies to the service price. Providers must make a demonstrable effort to inform prospective customers of these programs and the steps necessary to enroll and apply the benefit to the service plan.

In the event the applicant later offers a low-cost plan with higher speeds downstream and/or upstream, the applicant must permit eligible subscribers that are subscribed to a low-cost broadband service option to upgrade to the new low-cost offering at little to no cost.

The BEAD NOFO requires subgrantees receiving BEAD funds to deploy broadband infrastructure to offer a low-cost broadband service option that is available to qualified customers within the project area for the useful life of the network assets. Qualified customers are those who qualify for the FCC's Affordable Connectivity Program. Eligibility criteria for the Affordable Connectivity Program are located at https://www.affordableconnectivity.gov/do-iqualify/. Subgrantees may not impose additional eligibility restrictions beyond those applicable to the Affordable Connectivity Program.