Lifeline Reform Needs To Address Budget Concerns, Necessary Services, Clyburn, O’Rielly Say
Lifeline is an important program established 30 years ago and stuck in a time warp since, said FCC Commissioner Mignon Clyburn during a panel discussion about the service at NARUC’s summer committee meetings Monday in New York. The program has gone through some growing pains and challenges, but the FCC has never lost sight that Lifeline was created to act as a bridge for affordability, she said. Commissioner Michael O’Rielly made it clear that he is still unhappy with the lack of a budgetary cap on the program. He said that he has difficulty with where the FCC is on the program and where it seems to be going but that he is optimistic that the agency will be able to come up with a plan that all of the commissioners can support.
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Clyburn and O'Rielly agree the funding should stay at $9.25 per household but include broadband services. O’Rielly said he would have preferred that the commission address the problems with Lifeline as it is today instead of updating the services offered. When it comes to the budget, he held firm to his proposed funding cap. “I tried to install a cap” he said. “We didn’t get there as of yet. There were a couple different schools of thought on that, and I’m hopeful we can [get there]. I thought we were in agreement when we testified in front of the Senate Commerce Committee that we could accept a budgetary cap, but as things progressed, we couldn’t live up to those obligations.” O'Rielly and Commissioner Ajit Pai dissented from last month's Lifeline order (see 1506190047).
Lifeline must continue to meet the critical communications needs of those who cannot afford services, Clyburn said. The program's No. 1 vulnerability is that service providers are the ones that certify those who are eligible for Lifeline services, she said. Clyburn said not allowing service providers to be in charge of certification is a change that is non-negotiable going forward. “That is the absolute baseline that has to be a part of the equation,” she said. “Secondly, we need to look at how people communicate. And those who are economically vulnerable deserve the same access to advanced communications services that the rest of us have. So that’s why to me it’s important to make sure that this is no longer a voice-only product and has the opportunity to be a supplement with advanced communications services.”
The commission needs to start looking at Lifeline as a temporary bridge instead of a program that consumers are a part of for life, Clyburn said. A number of questions from NARUC commissioners reflected the fraud and misuse issues that exist with the program. A national database has been recommended. Clyburn said that a number of the inefficiencies have been addressed in recent years, leading to $2.75 billion in savings. “We are continuing to send out powerful signals that we want this program to be one that has all of the protocols that will address any of the vulnerabilities,” she said.
O’Rielly said he had hoped to get rid of more of the abuse and fraud issues with Lifeline to save taxpayers money and to ensure those in need are the ones getting help. But he said that in moving to broadband, those issues will continue. He said he can’t quantify the amount of fraud that will go on with the introduction of broadband, but that it will be a problem. “I think anyone who has followed any other federal program that we’re talking about modeling or piggy backing on, like [Supplemental Nutrition Assistance Program], knows very well that there’s waste, fraud and abuse in those programs and it’s quite substantial. There’s scams everywhere, people are stealing from American taxpayers through all of our federal programs. So the idea that that is going to provide the solution is probably a little generous," said O'Rielly. "I don’t want someone who doesn’t need it to get it; that’s the definition of a failed program.”
NARUC Notebook
Emergency services can't be allowed to break down as 911 systems transition to the next-generation, said FCC Public Safety Bureau Chief David Simpson during a panel about E-911 at NARUC's summer committee meetings in New York Monday. The bureau recognizes that states need to have the majority of control in governing their emergency systems because it works best that way, but he said states need to work with the FCC to make sure that calls are completed in emergency situations. The technology transition for consumers is ahead of the technology transition in the emergency services industry, Simpson said. While the transition continues, the bureau welcomes all suggestions to help advance the transition and update the rules for items such as text-to-911 and being able to accurately locate wireless callers, he said. While some support updating the rules, Don Brittingham, Verizon vice president-public safety policy, said he isn't sure whether new rules would be effective right now. New FCC rules for E-911 may discourage innovation and investment from smaller companies, he said.
The Local Number Portability Administration contract vendor transition is on schedule and is expected to follow the current time frame, said industry officials at the NARUC summer committee meeting in New York Monday. However, the FCC views the time frame as a living thing and recognizes that it could change, said Matthew DelNero, Wireline Bureau chief. North American Portability Management has shared a draft proposal with the FCC, DelNero said, and once that is reviewed, it will go back for NAPM review. If all goes well, a transitional operations manager (TOM) should be selected and announced this week, said Todd Daubert, NAPM counsel. Once a TOM is selected, the details of the transition can be fleshed out, he said. In moving through the transition, the FCC Public Safety Bureau is paying special attention to disaster mitigation capabilities that are essential to preserve, said bureau Chief David Simpson.