FCC’s Genachowski proposes broadband reform

Federal Communications Chairman Julius Genachowski outlined a draft proposal that would reform the commission’s Lifeline program to include provisions to encourage broadband adoption.

The program, currently aimed at providing affordable telephone service to low-income Americans, is supported by the Universal Service Fund. “The program is outdated, focused on phone service when high-speed Internet has become our vital communications platform,” he said. To address accountability and efficiency issues, Chairman Genachowski said, the draft proposal creates a national database of Lifeline users to prevent duplicative billing. It also sets a budget for Lifeline aimed at connecting eligible consumers while staying within budget, and requires that participating companies be subject to independent audits every two years. He said that FCC staff estimate the reforms will save the fund $2 billion over the next two years. The chairman said the FCC would work with existing broadband adoption programs to establish its own pilot program using savings from its budget reforms. It will also look at how to use Lifeline to encourage adoption among those consumers.