November 2014

This white paper calls for fundamental reform of the Federal Communications Commission’s existing Lifeline Program to provide access and enhanced consumer choice to 21st Century broadband services for the nation’s low-income consumers.

The report highlights how this antiquated, cumbersome and complex program currently perpetuates a market imbalance that obligates only wireline telephone providers to participate and maintain the administrative systems and processes required to operate the program. The IIA recommends streamlining the program to provide the flexibility necessary to broaden participation among various communications providers to help bring the benefits of competition to low-income consumers -- more innovation, better service, lower prices -- while also lowering administrative costs. One step toward attaining this goal is to transition the current program toward a voucher model, by providing eligible consumers with a “Lifeline Benefit Card” that empowers them to purchase a range of communications services, including broadband, wireline or wireless voice services.

The report offers the following recommendations on how best to modernize and transition the Lifeline program so that it can help ensure next-generation broadband access for low-income consumers:

1. Bring the Lifeline Program into the 21st Century by making broadband a key part of the program’s rubric;
2. Empower consumers by providing the subsidy directly to eligible people instead of companies;
3. Level the playing field between service providers to broaden consumer choice and stimulate competition for their purchasing power;
4. Safeguard and simplify the program by taking administration away from companies that are not accountable to the American public, instead vesting that governmental responsibility with an appropriate government agency.

Time Warner Chairman and CEO Jeff Bewkes told analysts that he envisions a future where all network programming, not just his, will be available to everyone at any time on any device on demand. While that sounds a lot like the TV Everywhere concept that Bewkes pioneered about five years ago, the content chief has a new name for this latest content idea: Universal VOD.

In an average week, one-in-five Americans share their religious faith online, about the same percentage that tune in to religious talk radio, watch religious TV programs or listen to Christian rock music. And nearly half of US adults see someone else share their religious faith online in a typical week.

Fully 20% of Americans said they had shared their religious faith on social networking websites or apps (such as Facebook and Twitter) in the past week, and 46% said they had seen someone else share “something about their religious faith” online. The percentage of Americans who shared their own faith online is similar to the proportions who said they watched a religious TV program (23%), listened to religious talk radio (20%) or listened to Christian rock music (19%). Even more (40%) said they shared something about their religious faith “offline, in a real-life setting.” By way of comparison, in Pew Research telephone surveys conducted in 2014, 35% of Americans have reported attending religious services at least once a week. The survey suggests that religious engagement through TV, radio, music and the internet generally complements -- rather than replaces -- traditional kinds of religious participation, such as going to church.

Deutsche Telekom CEO Timotheus Hoettges said that T-Mobile US can fund purchases of spectrum in upcoming US auctions by itself, taking pressure off the parent to inject funds into T-Mobile as it invests to beef up its network.

Hoettges said he is confident the US business would be able to buy spectrum by issuing new shares or bonds itself. "We consistently follow our strategy of de-risking, self-funding," he said. "I am convinced that T-Mobile US will continue to be a source of great satisfaction for us." Analysts at credit rating agency Fitch estimate that T-Mobile may have to spend at least $7 billion on spectrum in the coming years. T-Mobile is likely to bid on spectrum during this year's AWS-3 FCC spectrum auction and in the 600 MHz incentive auction of broadcast TV airwaves, scheduled for early 2016.