Universal Service Fund

This study draws on participant observation and interviews with low-income adults in Chicago to show how the poor stay connected to phone service and mobile Internet through the possession of multiple phones, including those subsidized by government aid. The “accumulation” of phones by individuals is widely observed, though underexplored in scholarship. Popular media coverage in the US frames the possession of multiple phones by people in poverty as criminal or excessive.

More than 1 million veterans rely on the Lifeline program connecting low-income households to essential services like health care, job opportunities and public safety. Unfortunately, proposed changes from the Federal Communications Commission threaten to undermine this vital program and hurt those who depend on it most. About 40 million people are eligible for Lifeline and roughly 10 million of those have enrolled. Of the enrollees, around 1.3 million (or more than 10 percent) are veterans or disabled veterans living near or below the poverty line.

There's no better time for state and local governments to get serious about developing proactive approaches to keeping residents connected in the days, months and years following a natural disaster. Among the programs that should be advertised to disaster survivors is the federal Lifeline program, which provides a subsidy that covers all or a portion of the cost of wireless voice and internet services for low-income consumers who qualify.

NextLink, the internet service provider owned by AMG Technology Investment Group LLC, was the biggest winner in the recent Connect America Fund Phase II (CAF II) auction. Specifically, NextLink will get around $281 million of the $1.5 billion that the Federal Communications Commission distributed to telecommunications companies around the country so they can deploy services to rural areas in order to cross the digital divide. What does NextLink plan to do with all that money?

Over the past several years the Federal Communications Commission has brought sweeping changes to Lifeline, the telecommunications aid program for low-income households. These changes are designed to shift the program’s focus from telephone service to broadband service. Though few would question the need to narrow the digital divide, many (including me) have criticized the way the commission has chosen to do so.

House Commerce Committee Chairman Greg Walden (R-OR) and Telecommunications Subcommittee Chairman Marsha Blackburn (R-TN) want more information from the Federal Communications Commission on a petition from USTelecom seeking regulatory relief from some unbundling requirements, as well as details on the agency’s recent Connect America Fund broadband subsidy auction.

The support structures that assist low-income families cannot work unless those in need have functional means of communication. Doctors monitoring children with fragile health, employers who can offer an extra shift to a struggling worker, nutrition support programs like SNAP which must confirm income eligibility — all these must be able to communicate with a low-income person, often within limited timeframes. Our collective and individual economic well-being is dependent on communications tools.

In spite of the billions of dollars in private investment and government subsidies over multiple decades, the numbers still paint a disturbing picture. Roughly 39 percent of rural Americans lack access to high-speed broadband, compared with just 4 percent of urban Americans. The internet that rural Americans can access is slower and more expensive than it is for their urban counterparts. And to add insult to injury, the rural population generally earns less than those in urban areas.  Building networks in rural America is incredibly expensive, and in some places it's nearly impossible.

Even in the country that invented the internet, access has remained painfully slow for many rural residents in places like the central state of Arkansas, far from the big cities of the East and West coasts. That may be about to change. The Federal Communications Commission recently auctioned off almost $1.5 billion in subsidies to get broadband providers to serve an additional 700,000 American homes over the next 10 years. Additional such auctions are planned.