Expansion of Lifeline Rules Likely the Most Contentious FCC Item Set for Feb. 18 Vote

The FCC also posted drafts of items expected to be less contentious, including an NPRM asking about moving carriers from what remains of the intercarrier compensation regime for voice services and an order aimed at increasing use of the 900 MHz band.

The Lifeline draft argues that the commission has the responsibility “to ensure that the scarce USF dollars that fund the program are flowing only to eligible low-income Americans and that the program is otherwise protected from waste, fraud, and abuse.”

The draft proposes to find that the program is a “federal public benefit restricted to U.S. citizens and qualified aliens” as defined by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. It seeks new requirements for demonstrating eligibility, including requiring applicants to submit full nine-digit Social Security numbers and using the Systematic Alien Verification for Entitlements program for household eligibility verifications. It also asks about requiring a secondary verification of consent for applicants to enroll in Lifeline or transfer to another provider.

In addition, the draft seeks input on whether it should continue to allow “opt-out” states “to use their own verification processes.” A 2025 change to California law “made it effectively impossible” for California regulators to “comply with federal Lifeline operations and program integrity obligations placed on opt-out states,” the draft notes. It also asks about a “workable” minimum data capacity and speeds for Lifeline-supported broadband and whether to end support for voice-only service.

Intercarrier Compensation NPRM

The intercarrier compensation draft asks whether FCC policy is slowing the IP transition for voice service. While the technology for IP-based voice services is widely available, the compensation regime might incentivize some providers to keep using older time-division multiplexing equipment, the NPRM says.

Access charges still used today include non-8YY-originating switched access charges and some terminating switched access charges, it said. The NPRM suggests capping all intrastate originating access rates that aren’t capped yet and moving all remaining intrastate and interstate originating access charges to bill-and-keep. That would help avoid cost-shifting during the transition, it says.

The draft asks about letting carriers recover costs from their end users by eliminating ex ante pricing regulation and tariffing of telephone access charges. It also seeks input on phasing out Connect America Fund intercarrier compensation. Moving from a world of intercarrier compensation, end-user charges and interexchange services to bill-and-keep “will take time,” the draft notes, as the agency tries to ensure it doesn’t hinder network modernization.

900 MHz Expansion

The 900 MHz draft order would create a voluntary, negotiation-based process to transition 10 MHz in the 900 MHz band to broadband on a county-by-county basis. It builds on a 2020 order that approved use of 6 MHz of the band for broadband while retaining 4 MHz for narrowband operations (see 2005130057).

The draft recognizes concerns raised by railroads and others about the transition. The change has “strong support from the enterprise community and energy utilities that have been the predominant users of narrowband spectrum in the 900 MHz band and are increasingly transitioning to 900 MHz broadband networks,” it says. But it also notes that the transition is optional and will be done “in a manner that ensures the protection of incumbent and adjacent band licensees.”

The Enterprise Wireless Alliance filed a letter at the FCC Tuesday, following the release of Carr’s blog, stressing the importance of the 900 MHz change. The group “has always encouraged the land mobile community to embrace advanced technologies that offer greater spectrum efficiency and more advanced capabilities,” it said in docket 24-99.

FM Translators

Commissioners will also vote on a draft public notice that seeks comment on a proposed application window to build new noncommercial educational (NCE) FM translators in the reserved band. The window would be open only to applicants that are already the licensee of existing NCE stations that would be rebroadcast by the translator.

The number of applications per applicant would be capped, with stiffer limits for low-power FM owners. Tribal LPFM applicants would be allowed to submit four applications nationally, and other LPFM applicants would be limited to two. Other applicants would be capped at 10 applications nationwide, the draft item says.

The notice would also seek comment on whether the proposed caps and eligibility restrictions “are appropriate limits to enable the efficient processing of applications.” They're intended to “deter speculative filings, permit the expeditious processing of the applications filed in the window,” and allow for new NCE reserved band FM translator station licenses “while still preserving spectrum for future secondary services,” the draft says.

LPFM entities Common Frequency and REC Networks told us they expect great interest in the window from NCE station owners, especially religious broadcasters. “Everyone who has an NCE station or an LPFM has been waiting for this for decades,” Common Frequency CEO Todd Urick said in an interview. “There’s pent-up interest.” The use of the reserved band is likely to mean relatively few openings for new translators, especially near cities, he added.

Full-power commercial broadcasters have historically expressed concern about interference from FCC proposals to expand other services, and they could push back on the NCE translator window, broadcasters told us.