Chairman Pai Proposes Lifeline Minimum Service Standard Order

Federal Communications Commission Chairman Ajit Pai circulated an order to his colleagues that would improve the way the FCC calculates annual updates to the minimum service standard for mobile broadband service provided through the Lifeline program. The draft order would revise the FCC's existing methodology to ensure predictable, reasonable yearly updates to the standard so that Lifeline subscribers can receive robust yet affordable mobile broadband service. Under the revised methodology, the Lifeline program’s minimum service standard for mobile broadband data capacity would increase, effective December 1, 2020, from 3 GB to 4.5 GB per month. Absent this reform, the standard would increase from 3 GB to 11.75 GB per month. In 2016, the FCC adopted minimum standards for services provided through the Lifeline program, including mobile broadband service, as well as mechanisms intended to predictably update those standards on an annual basis. However, the existing formula for updating the minimum standard for mobile broadband data capacity results in dramatic year-over-year swings in the standard—fluctuations that risk making Lifeline service unaffordable for many current subscribers. For example, in 2019, the formula would have resulted in an increase from 2 GB to 8.75 GB per month had the FCC not stepped in to limit that increase to 3 GB per month. This year, this standard would again increase dramatically to 11.75 GB per month, absent FCC action.

The draft order would fix several flaws in the existing formula for updating the Lifeline minimum standard for mobile broadband data capacity. These changes would (1) ensure greater predictability in the standard from year-to-year for Lifeline subscribers and providers; (2) better account for the needs of smaller-than-average households; and (3) enable the Wireline Competition Bureau to rely on the latest data sources in making its calculations.