Lifeline/Low-Income Consumers

The California Public Utilities Commission (CPUC), in ongoing efforts to ensure reliable and affordable telecommunication services, approved Verizon Communications’ acquisition of TracFone Wireless with consumer protection conditions to ensure the acquisition will be in the public interest. The CPUC's Decision finds that in order for Verizon and TracFone to meet the burden of proving their acquisition is in the public interest, they must adopt a number of specific measures to protect consumers-including California Lifeline customers-from price increases and service disruptions.

November 5, 2021 may be remembered as the day the U.S. House of Representatives passed the infrastructure bill. But it was also a big day for the Federal Communications Commission's Lifeline program—because of actions both the FCC and Congress took that day.

The Infrastructure Investment and Jobs Act not only provides the means to make broadband service more available by funding deployment of broadband middle-mile and last-mile networks, it also aims to make the service provided more affordable so more people can subscribe and use it.

The Federal Communications Commission's Wireline Competition Bureau paused the scheduled phase-out in Lifeline support for voice-only services and the scheduled increase in the mobile broadband data capacity minimum service standards for the Lifeline program. As directed by the FCC in the 2016 Lifeline Order, support for services that meet only the voice minimum service standard is scheduled to be eliminated in most areas on December 1, 2021.

This proposal that would approve Verizon Communications’ acquisition of TracFone Wireless with consumer protection conditions to ensure the proposed acquisition will be in the public interest.

In meetings with Federal Communications Commission staff, NTCA–The Rural Broadband Association reiterated its support for ensuring that lowincome consumers have affordable access to the voice service they need and therefore urged the Commission to retain the Lifeline subsidy for stand-alone voice service. Voice service remains critical for many low-income and older individuals who rely on such service as an affordable method of contacting health care providers, government agencies, and public safety. NTCA further stressed the urgent need for FCC action on the National Association of State U

The Federal Communications Commission designated five carriers across six states as eligible telecommunications carriers (ETCs) in eligible high-cost areas within the specified states. Designation in these areas is conditioned upon, limited to, and effective upon petitioners’ authorization to receive support under the Rural Digital Opportunity Fund (RDOF) program. Any such ETC designation covering RDOF supported areas, however, should not be interpreted as an entitlement to support or an indication that the Bureau will ultimately authorize the petitioner for support.

On October 4, 2021, the National Lifeline Association (NaLA) met with the Office of Acting Federal Communications Commission Chairwoman Rosenworcel to discuss the Lifeline Program and the Emergency Broadband Benefit (EBB) Program. The discussion focused on the Lifeline minimum service standards (MSS), getting the Lifeline program ready for the end of the EBB and certain Lifeline and EBB process improvements that should be made by the Universal Service Administrative Company (USAC).

Reps Jahana Hayes (D-CT), and Marc Veasey (D-TX) introduced the Preventing Disruptions to Universal Services Funds Act (H.R.5400) to extend access to federal funds for telecommunications programs for three years, eliminating the need for a yearly fund recertification. The bill was created to ensure internet access for millions across the country is not disrupted by federal funding costs allowing for continuous access to available resources.

There is currently a policy debate circulating asking who should pay to fund the Federal Communications Commission’s Universal Service Fund. For decades the USF has collected fees from telephone carriers providing landline and cellular phones – and these fees have been passed on to consumers. As landline telephone usage has continued to fall, the fees charged to customers have increased. To fix this, there have been calls to spread fees more widely.