NARUC Takes Aim at Proposals for Bypassing State ETC Role in Lifeline USF Program

NARUC opposed any Lifeline USF changes that would usurp state regulators' role in designating eligible telecom carrier (ETCs) participation in the program subsidizing low-income telecom service. NARUC General Counsel Brad Ramsay met with FCC officials recently to discuss proposals by others that the agency give Lifeline USF support to non-ETCs, establish a federal designation process that bypasses state ETC designations in the first instance, or fund broadband without requiring carriers to provide voice service. “The impetus for this seems to be the misguided notion that, by cutting States out of the process, it will somehow encourage cable providers of broadband services to focus on providing facilities-based lifeline service at a discounted rate very close to the current lifeline subsidy rate,” Ramsay said in a filing posted Friday in docket 11-42. He said the Communications Act doesn't allow the FCC to: create a federal ETC designation process bypassing state commissions from the beginning, give funds to entities that aren’t telecom service providers and are ETCs, or give subsidies to carriers that don’t offer all designated support services. He said Section 214(e) makes “crystal clear” that states are to designate carriers as ETCs before they can receive USF support and that the FCC has no ETC role unless the state can't act due to state law. He also said the proposals were bad policy because they would: take “state cops off the beat” and thus lead to more Lifeline fraud and abuse; undermine other state efforts to promote service to low-income consumers; seem unlikely to succeed in getting cable and others to provide Lifeline service; and “certainly will undermine the program’s service quality.” AT&T, Comcast, Public Knowledge and others have urged eliminating or streamlining Lifeline ETC designation requirements. Ramsay met with aides to all four regular FCC commissioners or gave them copies of the filing. He also met with FCC Chairman Tom Wheeler's counselor Gigi Sohn, incoming Wireless Bureau Chief Jon Wilkins, Wireline Bureau Telecom Access Policy Division Chief Ryan Palmer and Eric Feigenbaum of the Office of Media Relations. Some lobbying was during NARUC's meetings last week in Washington, where a resolution was adopted on Lifeline (see 1602150004).