FCC Moves Toward Making Broadband More Affordable Through Its Lifeline Program

On June 18, 2015, the Federal Communications Commission proposed to again reform modernize its Lifeline program, seeking public input on restructuring the program to better support 21st Century communications while building on existing reforms to continue strengthening protections against waste, fraud and abuse.

Established in 1985, the Lifeline program has made phone service – first landline service and now supporting wireless service as an option -- affordable for low-income Americans. Last year, Lifeline served some 12 million people. Now, a majority of the five FCC commissioners believe it is time for a fundamental, comprehensive restructuring of the program to meet today’s most pressing communications needs: access to broadband. As Brian Fung writes in the Washington Post, the June 18 vote was about considering how to subsidize broadband access “in a move that recognizes high-speed Internet as a key to pulling the poor out of poverty.” The FCC is proposing to maintain the program’s $9.25/month subsidy for low-income consumers, and seeks to use that money as efficiently and effectively as possible to deliver modern communications services.

Proposals on which the FCC seeks comment include:

• Adopting minimum service standards for both voice and broadband service,
• Whether broadband should be a required offering of Lifeline providers,
• How to encourage more competition to improve price and service, and
• How to encourage more participation by the states.