FCC Working on Lifeline Order for December Meeting
FCC staffers are trying to finish an order that would establish pilot programs in which Lifeline and Link-Up customers would be allowed to buy broadband Internet at subsidized prices, telecom officials told us. Staff is hoping to have the order ready for the Dec. 13 FCC meeting, the officials said. The order would structure a pilot program that would convert Lifeline subsidies to some kinds of broadband vouchers, the officials said. Lobbyists have increased their presence at the commission in recent days as word of the proposed order trickled out, filings in docket 11-42 showed. AT&T, USTelecom, Verizon and a handful of state officials have either written to or met with FCC staff on Lifeline changes in recent days. A telecom official said agency staff are worried about finding legal justification for supporting broadband with Lifeline funds.
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AT&T is apparently worried that the pilot programs would require providers to create new broadband programs for Lifeline customers, according to an ex parte notice the company filed. “Given that the anticipated broadband pilots will be of a limited duration and available to a relatively small number of consumers, requiring participating providers to create new offerings is likely to deter provider participation in the pilots,” AT&T said (http://xrl.us/bmicjf). “Instead, the Commission should permit providers to offer qualified low-income consumers a flat discount amount off the price of one or more of their existing broadband service offerings.” FCC officials didn’t immediately comment.
Verizon is worried that allowing Lifeline subscribers to buy bundled packages would expand the fund, not shrink it, the company said. “We explained that the Commission should not require carriers to allow consumers to apply their Lifeline discounts to any Lifeline calling plan with a voice component, including bundled service packages combining voice and broadband,” the telco said (http://xrl.us/bmick7). “By expanding the range of service packages that are eligible for Lifeline discounts, that proposal would further increase the size of the Lifeline fund and would not increase telephone subscribership. In addition, there is no evidence that those additional outlays would increase broadband adoption among low-income households, much less do so in an efficient manner."
Another flashpoint in the proceeding is the effort to crack down on duplicate claims and other forms of waste, telecom and FCC officials have said. Verizon, among others, has urged the commission to come up with some kind of national database of Lifeline subscribers to check against duplicate claims or other waste. “Even if the database administrator does not initially have direct, real-time access to state systems that contain eligibility information, the database administrator’s responsibilities should not be limited solely to checking for duplicates,” Verizon told FCC staff. “At a minimum, the administrator should assume responsibility for the annual verification process."
TracFone, among others, is worried that in its zeal to prevent waste, the FCC will also prevent poor people from getting the services they need. “Specifically, the Commission should not i) impose a cap on the amount of available Lifeline support; ii) it should not require payment of minimum charges by Lifeline customers; and iii) it should not require applicants for Lifeline support based on participation in qualifying programs to provide documentation of their participation (so-called ‘full certification'),” the company said (http://xrl.us/bmicmf).