Few States Plan to Offset Lost Federal Lifeline Voice Support
Some states are responding to a possible federal phaseout in Lifeline support for voice-only services, but many have no plans to replace lost support, state commission officials said. The FCC plans to phase out $5.25 in voice support Dec. 1 except in census blocks with only one Lifeline voice provider. Some industry and community groups applauded states stepping in but said it’s up to the FCC to ensure no one is disconnected from voice service. “In the absence of federal support, state Lifeline subsidy programs fill a critical gap for those in need,” said Next Century Cities (NCC) Policy Counsel-State and Local Initiatives Corian Zacher.
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The California Public Utilities Commission plans to vote next week on a state LifeLine proposal that includes setting varying amounts of state support to replace federal support for wireline services that don’t meet broadband minimum service standards (MSS), depending on how much the FCC phases down support (see 2108270049). The CPUC had planned to vote last week but held the item (see 2109080041). It posted a revised proposal Monday.
The Oregon Public Utility Commission might keep a temporary increase to the state’s Lifeline subsidy “to offset the reduction in federal Lifeline support for voice service,” said Oregon PUC Residential Service Protection Fund Program Manager Jon Cray. The commission increased the state’s Lifeline subsidy July 28 to $10 from $7 for Sept. 1 through Jan. 31, and adopted staff’s recommendation to open a rulemaking on making it permanent, he said. Staff expects to petition the commission for an NPRM in about a month, Cray said. An administrative law judge would then schedule a hearing and parties would file comments before the commission issues an order to take effect Feb. 1, he said.
No members of NARUC’s state USF administrators subcommittee said at a meeting last week their states will modify Lifeline programs to cover lost federal support, said Chair Sandy Reams, who's Kansas Corporation Commission telecommunications assistant chief. The NARUC panel doesn’t have Oregon or California members. Kansas will keep but has no plans to increase its $7.77 state Lifeline subsidy for voice-only services, said Reams. The KCC official plans to submit a recommendation in docket 16-575 “within the next couple of weeks to address this issue and what we need to do for certification/recertification/de-enrollment since these customers will no longer be maintained in the” National Lifeline Accountability Database and national verifier.
COVID-19 prompted the Kentucky Public Service Commission to temporarily increase state USF support last year by $4.50 to $8 monthly per Lifeline customer for eligible telecom carriers offering unlimited service, said PSC Executive Advisor J.E.B. Pinney. The PSC then reduced the subsidy to $6 in April due to budget constraints. The PSC “will reevaluate its level of support for additional voice services” starting February, Pinney said. “I would be surprised if the Commission did not take into account the decline in federal voice support when issuing an order on the issue.”
AT&T asked the CPUC to make up entirely for eliminated federal subsidies in an Aug. 31 filing. The carrier isn’t asking other states the same, a spokesperson said. “California is unique.”
It’s encouraging that some states “are trying to find ways to fill gaps as federal Lifeline support for voice declines and is phased out,” but “the federal decision to pull the plug on Lifeline support for voice services altogether in many areas is a misguided policy that ignores the critical nature of this supported service for many consumers,” said NTCA Senior Vice President-Industry Affairs Mike Romano: Some states jumping in -- possibly only temporarily -- doesn’t give “good reason for the FCC to continue its own walk away from Lifeline support for voice services.”
Most people may take voice access “for granted but, for many Americans, it may be one of the only reliable options to stay connected to friends and family,” said NCC Policy Counsel-Federal Programs Ryan Johnston. “The FCC must take a critical look at who will be disconnected. ... States are a critical resource to fill in the gaps where federal policy may be inadequate.”
An FCC spokesperson declined to comment Thursday. The commission received reply comments last month on its June 1 public notice in docket 11-42 to refresh the record on the National Association of State Utility Consumer Advocates' petition to reconsider the phasedown of voice-only support (see 2108180063).