Lifeline/Low-Income Consumers

On Nov 16, the Federal Communications Commission released a ‘re-think’ of the Lifeline program. The FCC decision focuses squarely on prior criticisms, and plans to scale back the $2.25 billion annual program in three important ways. First, it proposes to only support facilities-based providers, and might prevent resellers (telecommunication providers who provide service, but don’t own and operate their network) from offering subsidized subscription plans.

The FCC’s latest efforts to quote “reform” the Lifeline Program, will actually decrease the availability of service less for those who stand to benefit the most. As you well know, connecting the unconnected is no easy task. Costs of just a couple dollars a month can be insurmountable for families that struggle to put food on the table each day. But what the FCC majority proposed to do earlier this month, is to take away no-cost service offerings, and eliminate the business model of 70% of providers in the current market

Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the December Open Commission Meeting scheduled for Thursday, December 14, 2017.

Rounding out our December meeting will be two matters that were previewed yesterday.

First, the Federal Communications Commission will consider an order that would restore Internet freedom and return to the bipartisan, light-touch framework that helped America's Internet economy become the envy of the world. And unlike the previous Administration, which pushed through its Internet regulations without letting the public see what was being proposed, anyone can read my plan. It's on the Commission's website —more than three weeks before our scheduled vote.

The federal government is going to make it even more difficult for people on Tribal Lands to be connected to the wider world. In fact, most Native Americans who were counting on the Federal Communications Commission to continue with policies that many tribal communities were counting on to bring more service to far-flung tribal lands may see even cell service reduced.

[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.

On November 16, 2017, the Federal Communications Commission adopted a Report & Order to change its definition of “rurality” for Tribal lands eligible for the enhanced Tribal subsidy of the Lifeline Program. Despite a thorough record of Tribal filings in this proceeding—including previous reform and modernization proceedings beginning initiated in 2011—the FCC has decided to eliminate the enhanced Tribal Lifeline support that was previously designated for all Tribal lands.

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] Under the guise of promoting network investment and deployment and enhancing consumer choice, Federal Communications Commission Chairman Ajit Pai’s attack on the Lifeline program does the complete opposite. His plan proposes to kick all non-facilities-based service providers out of the Lifeline program, which includes wireless carriers like Tracfone’s Safelink Wireless or Virgin Mobile’s Assurance Wireless, that don’t have their own networks but lease capacity from facilities-based providers (e.g., AT&T, Sprint) and serve approximately 70 percent of Lifeline subscribers.

Rep Doris Matsui (D-CA), along with 22 members of the House Commerce Committee, sent a letter to Chairman Ajit Pai urging the Federal Communications Commission to reconsider proposed changes to the Lifeline program. “Now more than ever, the wake of this year’s natural disasters has shown the critical importance that a mobile connection – a literal lifeline – can play in getting Americans back on their feet. We are concerned that proposed changes to the Lifeline program could potentially strand millions of struggling families with no way to connect.