Lifeline/Low-Income Consumers

[Commentary] The Federal Communications Commission took its first major step toward overhauling the controversial Lifeline program in a move that will punish not just low-income citizens but perhaps small, innovative service providers as well.  Yes, Lifeline was once teeming with fraud, waste and abuse. Yes, the program still has significant flaws. And yes, companies that fail to provide adequate services should be forever barred from Lifeline for preying on some of our most vulnerable citizens.

The Federal Communications Commission took steps to transform its Lifeline program. A Fourth Report and Order, Order on Reconsideration, and Memorandum Opinion and Order changes FCC rules to:

[Commentary] Federal Communications Commission Chairman Ajit Pai is setting a record pace for deregulating the communications industries. Believe it or not, things are about to get worse in Nov. Starting with the FCC’s open meeting on Nov 16, the agency is poised to approve or propose no fewer than four decisions that will deregulate consolidated industries, remove consumer protections, and widen the digital divide:

The National Hispanic Media Coalition, Color of Change, NAACP and the Benton Foundation are among the organizations concerned about proposed changes to the Lifeline program, which is on the docket for the Federal Communications Commission’s upcoming open meeting. FCC Chairman Ajit Pai -- who has long called for reforms to deter waste, fraud and abuse in Lifeline -- is seeking a vote at the agency’s Nov. 16 meeting on a major overhaul of the program, which subsidizes phone and broadband service for the poor.

As the Federal Communications Commission's Affordable Connectivity Program gets set to end at the end of May, at least three internet providers touted alternative low-cost offerings, including some available only to low-income households. During the ACP’s 29-month existence, numerous providers have offered a $30 service for low-income customers so that service is essentially free when the ACP discount is applied, and some of the providers plan to continue to offer the $30 services. With a few exceptions, however, service will no longer be free.

Life Wireless, the Lifeline Assistance Program’s provider for Telrite Holdings, has vowed to continue accepting applications for their Lifeline Assistance Program after the Affordable Connectivity Program (ACP) runs out of funding in May. Life Wireless offers free service, data usage, and smartphones to low-income Americans. Subscribers are eligible for Lifeline Assistance Program help if they receive government assistance or if their income level is at or exceeds 135 percent below the federal poverty level.

A number of former Federal Communications Commission (FCC) officials are pointing to expanding the Lifeline program, under the Universal Service Fund (USF), as the way to save a version of the Affordable Connectivity Program (ACP), and prevent tens of millions of people from losing access to the monthly broadband subsidy. One way the FCC could do that was outlined in a recent petition for expedited rulemaking filed

The Federal Communications Commission is poised to raise taxes through its Universal Service Fund—a regressive, hidden tax on consumers' phone bills that funds a series of unaccountable, bloated internet subsidy programs. Rather than giving the FCC carte blanche to expand its balance sheet, Congress must reform the USF's structural problems, reevaluate its component programs, and get the FCC's spending under control. Here is my plan to do that. 

Sen Shelley Moore Capito (R-WV) indicated to West Virginia TV station WTRF that Capitol Hill lawmakers were looking at the Universal Service Fund as a source of money for the Affordable Connectivity Program. The USF has about $8.

A recent survey revealed that 81 percent of households with schoolchildren receiving a monthly broadband subsidy are worried about the prospect of losing this assistance and its potential effects on their children's education, according to the Universal Service Administrative Company. These metrics “demonstrate with incredible clarity just how important it is to stay connected in modern life and how dangerous it is to threaten disconnection,” said Federal Communications Commission Chairwoman Jessica Rosenworcel.