NARUC to Consider Dueling Lifeline Draft Resolutions on FCC Plan Drawing State Concerns

The draft opposing the FCC Lifeline proposal said resellers have been crucial to ensuring low-income people are connected to broadband and telecom services. It suggests that if the FCC firms up a Lifeline budget, it ensure that currently subscribed qualified households not lose benefits and program funding still grow. The draft is sponsored by Vermont Commissioner Sarah Hofmann, a NARUC board member, and Missouri Commissioner Maida Coleman, chairman of NARUC's consumer committee, which along with the telecom committee will consider the Lifeline resolutions.

The draft that supports the FCC Lifeline proposal said commission forbearance from requiring providers to use their own facilities removed "any significant incentives for companies to invest and to build voice and broadband-capable facilities," subverting a statutory mandate to promote advanced telecom capability. It backs FCC proposals to eliminate a federal Lifeline broadband provider designation and reverse its pre-emption of state authority over eligible telecom carrier designations, and calls for requiring Lifeline broadband providers to provide voice services. It's sponsored by District of Columbia PSC Chairman Betty Ann Kane, also a board member.

Some say the draft backing reseller Lifeline participation has an edge. "I think most of the NARUC commissioners besides Commissioner Kane are supportive of our resolution that says leave things the way they are -- it's working well," said Nebraska Commissioner Crystal Rhoades, a co-sponsor of the Hofmann-Coleman draft. She noted Lifeline began under President Ronald Reagan and was expanded under President George W. Bush to include wireless resellers. "If the FCC prohibits non-facilities-based providers from competing in the market, it would have a devastating impact to low-income and working-class people," she said. "If the FCC is concerned about waste, fraud and abuse, they have the power to correct any problems without shutting down the program by squeezing providers out."

At least four state commissions voiced concern to the FCC about its Lifeline proposal (see 1801260038). Kane didn't comment. Other state regulators also didn't comment or reserved judgment. "I'm looking forward to good discussion and debate," said South Dakota Commissioner Chris Nelson.

Others said it's clear Kane's resolution is unlikely to be adopted. "Many states are already on record with a position that favors wireless resellers and opposes the FCC’s proposal to bar their [Lifeline] participation," said an industry representative. The National Association of State Utility Consumer Advocates "has passed a resolution in favor of wireless resellers," said the representative, adding that even Citizens Against Government Waste says the FCC proposal "goes too far."

The FCC proposal "tramples over the states' statutorily designated role in designating ETCs and would nullify dozens of state ETC designations of wireless resellers," said a statement from Issa Asad, CEO of Q Link, which says it's the third-largest Lifeline provider and a Sprint reseller. "Nearly 70% of Lifeline consumers get service from wireless resellers. With a fully implemented National Verifier and reasonable added safeguards, the FCC can stomp out the problems.”

The National Lifeline Association supports the Hofmann-Coleman resolution, "as it recognizes that wireless resellers serve about seven out of every ten Lifeline subscribers," said a statement. It said the FCC proposal "would nullify dozens of state ETC designations of wireless resellers and potentially upend dozens more state decisions to allow facilities-based providers to relinquish Lifeline ETC designations and obligations, many of which were premised on consumers’ preference for Lifeline services offered by wireless resellers."

NARUC will also consider a draft resolution on nationwide number portability that urges the FCC "to carefully consider issues raised in the [North American Numbering Council] May 16, 2016 'Report on NNP,' and asks for disclosure for public comment of: (1) costs to consumers to implement NNP; (2) cost recovery options for NNP implementation; and (3) implementation timeline options." The Kane-Coleman draft is before the telecom and consumer committees. The telecom panel also is scheduled to consider a draft resolution from U.S. Virgin Islands Commissioner John Clendenin that encourages the FCC "to adopt rules that require meaningful advance notice of overlashing to the pole owner."

Lifeline Notebook

FCC Chairman Ajit Pai said additional states and territories were identified by Universal Service Administrative Co. as candidates to join in 2018 national verification of consumer eligibility for the federal Lifeline USF low-income support program. He said USAC began communicating with the states and territories (which he didn't name) to gain data-sharing agreements, which would be the second tranche. New Mexico, Colorado, Utah, Mississippi, Wyoming and Montana are expected to kick off state participation in a national verifier's system early this year after the Wireline Bureau delayed their original December launch to address system security concerns (see 1712010042), he noted, with all states expected to join by December 2019. "The launch of the National Verifier will be a major step forward in rooting out waste, fraud and abuses in the program, in concert with the Commission's ongoing review of necessary programmatic changes to improve the integrity and efficacy of the Lifeline program," he said in a letter posted Thursday in docket 17-18 to Rep. Doris Matsui, D-Calif., who had requested updates.

FCC staff partially granted California PUC Lifeline petitions for a four-month waiver of non-usage and recertification rules for 13 counties affected by October and December wildfires. "Good cause exists to waive through February 15, 2018 sections 54.405(e)(3), 54.405(e)(4), 54.407(c)(2), and 54.410(f) of the Commission’s rules for all ETCs [eligible telecommunications carriers] serving Lifeline subscribers residing in the Census tracts identified as affected by the October 2017 wildfires that are the subject of the Petition," said a Wireline Bureau order Friday in docket 11-42 . "We also waive through March 31, 2018 sections 54.405(e)(3), 54.405(e)(4), 54.407(c)(2), and 54.410(f) of the Commission’s rules for all ETCs serving Lifeline subscribers residing in in the Census tracts identified as affected by the December 2017 wildfires that are the subject of the Supplemental Petition, as listed in Appendix C to this Order."

FCC staff denied a Sprint petition to reconsider waiver extension orders that granted three states more time to implement revised Lifeline-qualifying programs. "Sprint’s arguments do not warrant reconsideration of the language requiring Lifeline providers to conduct eligibility determinations and recertifications for Lifeline subscribers in California, New York, and Michigan if these states do not change their eligibility verification process or databases to comply with the revised federal eligibility criteria by the state’s waiver deadline," said a bureau order Friday.

FCC staff invited input on a National Lifeline Association petition for declaratory ruling. Comments are due March 12, replies March 27 on NLA's request that Lifeline ETCs "be 'permitted to seek reimbursement for all Lifeline eligible subscribers served as of the first day of the month pursuant to sections 54.407(a) and 54.405(e)(3) of the Commission’s rules, including those subscribers that are in an applicable 15-day cure period following 30 days of non-usage,'” said a bureau public notice in Friday's Daily Digest.

The California Public Utilities Commission Thursday approved a plan to protect low-income residents "from drastic cutbacks to eligibility for the Lifeline program," the Greenlining Institute said Friday. “This decision marks a great milestone in California’s resistance to the federal war on low-income Americans,” said Vinhcent Le, the group's telecom legal counsel. The group noted the FCC removed the National School Lunch Program, Low Income Home Energy Assistance Program and Temporary Assistance for Needy Families from programs that qualify people for such assistance, "potentially cutting off over 81,000 current participants and blocking another 322,000 more from eligibility based on income. The new [California] decision preserves current eligibility rules, with the state making up the cost difference."