Lifeline/Low-Income Consumers

The Federal Communications Commission's Wireline Competition Bureau announces updated minimum service standards for Lifeline-supported services as required by the 2016 Lifeline Order. Absent action, beginning December 1, 2021, the Lifeline minimum service standard for mobile broadband data capacity will increase to 18 GB per month pursuant to the calculations set out in the FCC’s rules and the 2016 Lifeline Order. The Lifeline minimum service standard for mobile voice service will remain unchanged, at 1000 minutes per month.

The Federal Communications Commission's Wireline Competition Bureau announces the counties in which conditional forbearance from the obligation to offer Lifeline-supported voice service applies, pursuant to the Commission’s 2016 Lifeline Order. This forbearance applies only to the Lifeline voice obligation of eligible telecommunications carriers (ETCs) that are designated for purposes of receiving both high-cost and Lifeline support, and not to Lifeline-only ETCs. The Bureau identifies the counties in which certain competitive conditions are met. In particular, the FCC grants forbearance fr

Senators Edward Markey (D-MA), Richard Blumenthal (D-CT), Sheldon Whitehouse (D-RI), Dianne Feinstein (D-CA), and Ron Wyden (D-OR) pressed the Federal Communications Commission to probe Verizon’s proposed acquisition of TracFone and secure specific commitments from the company to ensure that this acquisition will not harm consumers. In the $6.9 billion transaction, Verizon would acquire one of the largest operators of the Lifeline program which provides free or discounted internet and affordable prepaid mobile phone services to low-income Americans.

Two weeks ago, the Federal Communications Commission released data on how many households have signed up for the Emergency Broadband Benefit (EBB), a program created by Congress in response to the COVID-19 pandemic. The program offers eligible households a discount of up to $50 per month on broadband service.

In 2016, the Federal Communications Commission adopted a comprehensive reform and modernization of its Lifeline program. For the first time, the FCC included broadband as a supported service in the program, allowing support for stand-alone mobile (think cell phone) or fixed broadband Internet access service (think home broadband service delivered over a wire), as well as bundles including fixed or mobile voice and broadband. But the 2016 decision also set out to zero-out support for voice-only services.

In this report, the Federal Communications Commission's Wireline Competition Bureau provides a summary of the state of the Lifeline marketplace as directed by the 2016 Lifeline Order.

The key findings of this report reflect the need to establish a clearer connection between Federal Communications Commission policy and how Universal Service Administrative Company operationalizes this policy through an FCC-directed Lifeline program strategic plan. Currently no such document exists. This prescriptive document will significantly contribute to the resolution of many of the findings. Broadly, findings, observations, and recommendations span two main categories:

The Federal Communications Commission is still reviewing Verizon’s proposed purchase of TracFone Wireless from América Móvil. Verizon CEO of the Consumer Group, Ronan Dunne, and TracFone CEO, Eduardo Diaz Corona, met with Acting FCC Chairwoman Jessica Rosenworcel to try and convince her that the transaction is in the public interest. Their main argument is that a combined Verizon/TracFone will introduce a third facilities-based provider in the prepaid segment to compete against T-Mobile’s Metro and AT&T’s Cricket.

Reps Elaine Luria (D-VA) and John Katko (R-NY) introduced the Ensuring Phone and Internet Access for SNAP Recipients Act of 2021 (H.R.4275). This bipartisan bill would lower the cost of phone and internet access for households that benefit from the Supplemental Nutrition Assistance Program (SNAP). SNAP recipients automatically qualify for the Federal Communications Commission’s Lifeline Program, which offers discounted phone and internet service.

In response to the impact of the ongoing COVID-19 pandemic in the United States, the Federal Communications Commission's Wireline Competition Bureau has waived certain Lifeline program rules in seven previous Orders to provide necessary relief for low-income households. Although vaccination efforts have been underway for several months and overall cases have decreased, the effects of the COVID-19 pandemic are still being felt by many Americans.