Pai Lifeline Reversal Seen Unlikely; Critics Warn of FCC 'Attack' on Program
FCC Chairman Ajit Pai appears unlikely to change course on a Lifeline draft before commissioners meet Thursday, observers told us, with several expecting a 3-2 vote along party lines. Critics sounded the alarm on a draft Lifeline item on the agenda, warning of "an attack" on the low-income broadband and voice subsidy program. The draft orders and notices "would kill wireless service for most tribal lands in the U.S. immediately and then for millions of other Americans in the following months," said Consumer Action, National Grange and a tribal advocate.
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"The FCC is pointing the finger at the wrong villain by trying to shut down wireless resellers," said Linda Sherry, Consumer Action director-national priorities, on a press call. The draft would cut off enhanced tribal Lifeline support to resellers and in urban areas receiving it, and would propose generally to target funding to facilities-based providers (see 1710270013).
Parties voiced skepticism the FCC would reverse course. Davis Wright attorney Danielle Frappier, who represents Lifeline providers, said she isn't expecting major changes, given Pai's ability to marshal a 3-2 Republican majority, though she anticipates significant pushback on proposed rules during the subsequent comment period. "We do not foresee any significant changes to the draft and believe it will be adopted in a 3-2 vote," emailed Carmen Scurato, National Hispanic Media Coalition director, policy and legal affairs. The "most likely result I see is that Pai at most makes a few changes at the edges, possibly on timing of some actions, but that the fundamentals of the draft remain intact," emailed a Lifeline provider representative, who expects Democratic Commissioners Mignon Clyburn and Jessica Rosenworcel would dissent.
“Chairman Pai’s proposed reforms will both reduce the waste, fraud, and abuse in the Lifeline program that has been documented by GAO and help bridge the digital divide by targeting funding to companies that are actually deploying infrastructure in rural Tribal lands and low-income areas,” said an FCC spokesman.
Sherry called it "doublespeak" to suggest the draft would improve Lifeline service for low-income consumers. Joe Red Cloud, former chairman of the Oglala Sioux Tribe Utility Commission in South Dakota, said resellers would leave the market without the tribal Lifeline support. He wasn't aware of any significant FCC outreach to tribal authorities in recent days despite tribal calls to be consulted. The draft "would destabilize and impair" Lifeline "and leave many of the most vulnerable people in the country without access to affordable communications," said the National Consumer Law Center.
Some assailed the draft in filings posted Tuesday in docket 11-42 and dated Thursday, when lobbying restrictions took effect. The National Association of American Veterans urged commissioners to reject the draft's proposals, which "would ban four of the five largest wireless Lifeline providers that currently serve the majority of the people in the program." About 10-13 percent of wireless Lifeline subscribers are veterans, the group said. The Alliance for Retired Americans called on commissioners to reject the draft, which would "destroy Lifeline's promise to bring affordable communications to many of our constituents."
Lifeline providers discussed the "desirability of trying to seek consensus," meeting an aide to Pai, who they said "was rightly critical of his predecessor’s penchant for 3-2 decision making." They offered suggestions on a 5-0 approach. "While such an approach will take considerable consultation and good faith compromise, we expressed optimism that it could be achieved -- at least at the opening phase of the new proceeding -- because all Commissioners appear to share the Chairman’s goal of closing the digital divide and agree that the Lifeline program is best suited to address the affordability aspect of that divide," said the Lifeline Connects Coalition, National Lifeline Association, Boomerang Wireless and Easy Wireless. "We also emphasized the need to start with questions rather than answers."
Others weren't optimistic of a compromise. "Barring any surprises, I'm expecting 3-2," said a stakeholder. "I think most/nearly all of what was in the draft order gets adopted," with the Democrats likely dissenting, said a carrier attorney. Some saw tweaks to an NPRM as more doable.
"The FCC’s blatant procedural misstep in skipping over mandated tribal consultation would make it sensible for the Commission to convert the tribal portion of the order into a notice -- something they should be able to do unanimously," emailed Cheryl Leanza, United Church of Christ policy adviser. "Given the public statements of both Clyburn and Rosenworcel and both offices’ longstanding support for Lifeline, I cannot imagine that they would support the draft. ... I don’t understand why the Republican offices, who typically would be expected to support level-playing-field competition, would support it either."
“The debate over Lifeline reform has become highly partisan, which is unfortunate because the program has had bi-partisan support for most of its history,” emailed John Windhausen, executive director of the Schools, Health & Libraries Broadband Coalition.