December 2020

In meetings with Federal Communications Commission staff, NTCA discussed an issue identified recently related to the phasedown of Lifeline support for voice-only customers and its interplay with cost recovery under the High-Cost universal service program. Specifically, for many eligible telecommunications carriers (“ETCs”), the reduction of the Lifeline subsidy for such customers to $5.25 per month effective December 1, 2020, precludes recovery of the full amount of the Subscriber Line Charge (“SLC”), and it appears that these shortfalls may be unrecoverable through the High-Cost program.

Federal Communications Commission Chairman Ajit Pai has been extremely popular with the telecom companies he’s regulated for the last four years, but one corner of the industry will not be sad to see the chairman step down. The carriers that provide mobile service to the nation’s neediest citizens say Pai is trampling them on his way out the door while pulling critical service away from those hit hardest by this year’s economic downturn. Lifeline providers say an FCC order that took effect December 1 will force them to stop offering free data service to qualified low-income customers.