Sprint says broadband co-pays kill Lifeline participation
Sprint urged the Federal Communications Commission to give Lifeline subscribers the option of applying the program's subsidies to either voice or broadband service, saying end-user co-pays for broadband service severely limit participation in the program. The nation's fourth-largest mobile operator provides federally subsidized Lifeline phone services under the brand Assurance Wireless, which is part of its Virgin Mobile division. The program offers a free phone, 250 local and domestic long distance voice minutes and unlimited texts to low-income users in participating states. Sprint said the annual income of an average Assurance Wireless household (including an adult and at least one child under the age of 18) is roughly $14,000. Sixty-one percent of Assurance users are temporarily unemployed or disabled, 89 percent don't have fixed-line phone service, and more than one-third had experienced an interruption in their mobile service before signing on with Assurance. Nearly 60 percent are more than 45 years old. "In short, these subscribers are severely cash-constrained and cannot readily afford out-of-pocket payments," Sprint said.
The carrier went on to say that implementing end user co-pays sharply limited participation in a recent Lifeline pilot program of broadband services. Assurance's least expensive option cost $30 upfront and had no recurring charges but only saw 526 users in its most active month. The most expensive option – which cost $50 upfront and a $20 monthly charge – had only 56 users in its most active month.