FCC Rules to Provide Free Wireless Service

Eligible telecom carriers (ETCs) offering free wireless service to Hurricane Katrina survivors could get an estimated $39 million reimbursement under new FCC Lifeline rules, the agency said in an order. The rules, in effect until March 1, will cover only households eligible for individual housing assistance under FEMA rules. Eligible customers will receive a free handset and a package of at least 300 min. of use, up to $130 in value per household, until March 2006. “We find that $130 per household is a reasonable amount of support... based on the variety of the competitive plans available to consumers throughout the United States,” the FCC said. The support will “assist in the recovery from the economic damages caused by the hurricane” and “promote public safety by ensuring that disaster victims have ready access to E-911 capability.” The FCC said such support is consistent with Sec. 254 of the Telecom Act, because “it is reasonably necessary to ensure that low income consumers have immediate access to telecommunications service.” The agency used its Title I authority to include free wireless handsets. The FCC also: 1) Adopted Link-Up rules to defray costs of reconnecting households to telecom networks; 2) Allowed health care providers to seek support for advanced telecom and information services used for telemedicine applications; 3) Opened a new application window to let schools and libraries in affected area and those serving more students due to the storm resubmit requests for E-rate funds for this year; 4) Assigned the E-rate program’s highest level of priority to schools and libraries in the affected areas for funding year 2005 and 2006; and 5) Clarified that under rules for receiving high-cost support, carriers in the disaster area may use high-cost support funds received for high-cost areas in Alabama, Louisiana and Mississippi to help rebuild storm-damaged facilities.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

See FCC order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-178A1.doc