Tracfone: FCC Can't Convert Lifeline From Service to Benefit Program, as AT&T Wants
Tracfone drew a line in the sand with AT&T and the FCC on Lifeline USF, as the agency considers expanding the low-income support program to broadband and overhauling its administration. Much of AT&T’s view is built on the belief that…
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Lifeline is not a “service” but a “benefit” to be provided to consumers, such as provided by the Supplemental Nutrition Assistance Program (SNAP or food stamps), Tracfone said in a filing posted Monday in docket 11-42, responding to a recent AT&T letter (see 1512220050). But “Lifeline is not a benefit; it is a service provided by eligible telecommunications carriers to qualified low-income households,” the wireless reseller said. It said the service designation was expressly spelled out in sections 54.401(a) and 54.401(c) of the FCC’s rules and Section 254(b)(3) of the Communications Act. "The Lifeline program was conceived by the Commission as a service program; it was codified as such; and any conversion of the program from a service program to what AT&T calls a ‘benefit’ a la SNAP, would require enabling legislation,” Tracfone said. “Nothing in the Communications Act ... provides any authority for the Commission to re-invent Lifeline as a direct government to consumer benefit.” Tracfone also disputed AT&T arguments that switching carriers under Lifeline is complicated. It said AT&T’s “real reason” for proposing to convert Lifeline to a SNAP-type benefits program is stated in its letter: "The information and processes required to achieve this discounting is unique to Lifeline consumers and has no other business purpose. As a result, much is performed through manual methods." AT&T added a footnote saying it was "uneconomic" to automate related systems, said the reseller. "AT&T is candidly stating that investment of the systems needed to provide Lifeline service to consumers is more trouble to it than it is worth," Tracfone said.