With just 400 Lifeline customers, T-Mobile to drop support for federal Lifeline program

T-Mobile US indicated it plans to discontinue its support for the federal Lifeline phone program, which provides subsidized phone service to low-income Americans, as of the end of 2014. The carrier said the move will impact its operations in Alabama, Connecticut, Delaware, New Hampshire, New York and Tennessee and Washington (DC).

In a filing with the Federal Communications Commission, T-Mobile said it is relinquishing its "eligible telecommunications carrier (ETC) designation for the purpose of providing Lifeline services," effective Dec. 31, 2014. The company said that "upon reviewing its on-going business plans, T-Mobile has decided that it will not continue operating as a Lifeline ETC" in the states it is exiting from service. The FCC designated T-Mobile as an ETC to provide Lifeline services in the states on Aug. 16, 2012. The shutdown comes after AT&T Mobility's Cricket prepaid brand said in June that it is planning to phase out its support for the government's Lifeline service. Cricket said it will continue to support its existing Lifeline customers on CDMA phones for the next 18 months or so, and that it will not sign up any new Lifeline customers on Cricket GSM phones.