FCC Lifeline Draft Would Support Broadband, Streamline Verification and Entry, Set Budget

The FCC circulated a draft order that would extend Lifeline USF support to broadband coverage and to streamline administration of the program that subsidizes low-income telecom service, as expected. The draft is expected to be considered at the agency's March 31 meeting, as Communications Daily first reported. The order would allow Lifeline support to be used for stand-alone broadband or bundled broadband/voice packages in addition to current voice service. The order would phase out the support for stand-alone mobile voice service and phase in broadband minimum standards over the next few years, said an FCC fact sheet.

The draft would keep monthly Lifeline support capped at $9.25 per household and set a budget of $2.25 billion (current funding is about $1.5 billion), indexed to inflation. The Wireline Bureau would notify the FCC when spending reaches 90 percent of that figure, with the commission to act within six months. The fact sheet did not suggest what action the FCC might take.

"Internet access has become a pre-requisite for full participation in our economy and our society, but nearly one in five Americans is still not benefiting from the opportunities made possible by the most powerful and pervasive platform in history," said FCC Chairman Tom Wheeler and Commissioner Mignon Clyburn in a blog post. "We can do better. We must do better. Indeed, Congress told us to do better. By modernizing the FCC’s Lifeline program, we will do better."

The draft would move verification of consumer eligibility from providers to a national verifier, which would be run by Universal Service Administrative Co., said senior FCC officials speaking to reporters Tuesday on condition the officials not be identified. It would also refine the "list of federal programs that may be used to validate Lifeline eligibility to those that support electronic validation, are most accountable, and best identify people needing support," including the Supplemental Nutrition Assistance Program, Supplemental Security Income, Medicaid, veteran's pensions, and tribal programs, while allowing consumers to still make their own showing of low-income eligibility, said the fact sheet.

Providers would be given the option of seeking nationwide entry into the program from the FCC as Lifeline broadband providers, the agency said. The new path would remain within the Communications Act's structure of designating eligible telecom carriers but would be more streamlined than the current process, said the senior officials. They hope it would encourage new entry, more competition and expanded consumer choice. Providers would also still have the option of seeking Lifeline ETC status from state regulators, said commission officials.