Obama Backs Expanding Lifeline To Cover Broadband

“From his first day in office, President Obama has made broadband a priority,” said Jeff Zients, director of the National Economic Council, during an administration news media call, saying this is the first time Obama has backed expanding Lifeline to cover broadband. “Broadband isn’t ‘nice to have,’ it’s ‘need to have.’” Zients noted the Lifeline program was founded during the administration of Republican President Ronald Reagan and updated to wireless under President George W. Bush, another Republican. Zients called the ConnectALL efforts the beginning of an “all-hands-on-deck effort.”

NTIA filed comments with the FCC on behalf of the administration backing the FCC’s push to overhaul the Lifeline program (see 1603090040). FCC Chairman Tom Wheeler and Commissioner Mignon Clyburn began circulating an item earlier this week to update the program (see 1603080054). Chief Counsel Kathy Smith signed the 22 pages of NTIA comments. Zients emphasized the FCC is an independent agency and said "the FCC will make its own independent decision here." The agency faced intense GOP criticism after its rulemaking on net neutrality, which Obama publicly embraced.

The administration urged the FCC to periodically review the $9.25/month subsidy amount as the commission begins its overhaul. “Although the current $9.25 monthly subsidy may be adequate for voice service, it may not be adequate to cover broadband services, or to foster the zero-to-low cost options that will encourage the level of adoption required to bridge the digital divide,” NTIA said in the comments. “Nevertheless, it may be possible for providers to supply broadband services to consumers at the current subsidy level through existing programs, while new business models may also emerge. A periodic review of the subsidy -- commencing at an appropriate time following this rulemaking -- would allow the Commission to monitor trends in the market and encourage continued innovation and industry response. To discourage incentives for waste, fraud, and abuse, the Commission should also explore robust compliance programs that would accompany a higher subsidy level.”

"There's no change in the level of subsidy," Zients affirmed during the administration call. Jason Furman, chairman of the Council of Economic Advisers, said of the greater connectivity goals, "we haven't broken down that 20 million in terms of, Lifeline would get you this" or "municipal broadband would get you that." The administration sees the Lifeline overhaul as one part of a broader connectivity strategy, Furman said.

“When we use the Internet to communicate more than ever, it is time to modernize Lifeline and make sure that all Americans can access the broadband services they need,” the administration fact sheet said. “The Lifeline reforms the Administration is recommending today would give the 12 million households currently using the subsidy for phone service immediate help paying their monthly broadband bill. And it has the potential to benefit tens of millions more.”

The administration recommended Lifeline overhaul should encourage consumer choice through “a direct and portable benefit that consumers can use to make their own choices about what services they need and who they get those services from”; coordinate enrollment with other government programs; and kick off a national service effort on digital literacy skills. The General Services Administration “will lead an inter-agency effort to re-engineer the Computers for Learning program to expand access to devices for more organizations that help provide digital literacy and training for low-income Americans,” the administration said.

The White House’s Council of Economic Advisers also released a related issue brief. “This brief highlights that a digital divide persists in the United States, even though much progress has been made,” said the 11-page report. “Notably, just under half of households in the bottom income quintile use the Internet at home, compared to 95 percent of households in the top income quintile. One of the ways to help reduce the digital divide is to spur competition between providers.”

NTIA’s Broadband USA launched a Community Connectivity initiative, “which will create a comprehensive online assessment tool” in collaboration with such groups as the American Library Association, Blandin Foundation, National Association of Counties, NATOA, National League of Cities and New America’s Open Technology Institute “to help community leaders identify critical broadband needs and connect them with expertise, tools, and resources for overcoming the challenges to expanded broadband deployment and adoption,” the administration said. The White House cited several communities, including Baltimore and Boston, backing development of such a tool. “The Community Connectivity Initiative will build on NTIA’s extensive work with communities across the country, supporting broadband planning, infrastructure deployment, public computer centers, and a wide range of community applications,” it said.

“Every student, everywhere with the connectivity they need,” FCC Commissioner Jessica Rosenworcel tweeted after the announcement. “@POTUS on #ConnectAll & bridging the #HomeworkGap.”