June 2017

Reactions to GAO Lifeline Report

On June 29, the U.S. Government Accountability Office published a report on the Federal Communications Commission’s Lifeline program’s application process. The GAO investigated multiple Lifeline providers and failed to confirm the eligibility of roughly a third of participants.

A Summary of the Report can be found here: Additional Action Needed to Address Significant Risks in FCC’s Lifeline Program

Lifeline Advocates Urge FCC Chairman Pai to Stand by his First Statements as Chairman and Safeguard the only Federal Program Targeting the Digital Divide

FCC Chairman Ajit Pai: "“Last year, I led an investigation into the Lifeline program that revealed serious weaknesses in federal safeguards. Today’s GAO report confirms what we discovered then: Waste, fraud, and abuse are all too prevalent in the program. Commission staff and the Office of Inspector General have already been developing recommendations to better safeguard taxpayer funds. I stand ready to work with my colleagues to crack down on the unscrupulous providers that abuse the program so that the dollars we spend support affordable, high-speed broadband Internet access for our nation’s poorest families.”

FCC Commissioner Mignon Clyburn: “We have a statutory obligation as a Commission to ensure all Americans, including low income consumers and those living in rural and insular areas, have affordable voice and broadband access. Recognition of this responsibility goes hand-in-hand with my long stated belief that we must aggressively root out waste, fraud, and abuse in all of our universal service programs, including Lifeline. In recent years, the Commission has taken numerous steps to achieve this goal, including setting up a national eligibility verifier, adopting a periodic recertification requirement and ensuring that people who are signed up are actually using their service. The Lifeline program already has a very low improper payment rate of 0.45%, and it must be noted, that many of the issues highlighted by the GAO’s report will be addressed by the national eligibility verifier. I am pleased that the work on this effort is proceeding as planned, and will work with my colleagues to address all of the GAO’s recommendations. Today the FCC’s Lifeline program remains the only means-tested universal service program, where only the consumers who cannot afford to be connected are given the ability to do so. So while we invest in the infrastructure needed to bring connectivity into every community in America, we must not forget that ‘if we build it, they will come’ only holds true if the services are affordable. Some may use the limited findings of this report as justification to cut back on the Lifeline program even further, but that would be catastrophic for those most in need. The answer is not denying access to those who cannot afford connectivity and access to critical services like 911, the next steps should include rolling up our sleeves and addressing any imperfections that remain. We have a choice to make: be short-sighted and weaken a program designed to assist our nation’s most vulnerable or fix what may be broken so that this agency is actually upholding its Congressional mandate to ‘make available, so far as possible, to all the people of the United States…a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges…for the purpose of promoting safety of life and property….’ Instead of widening the digital divide, let us have an honest conversation about how to make voice and broadband even more affordable and accessible for economically challenged Americans.”

FCC Commissioner Michael O'Rielly:“I am not surprised by the revelations in GAO’s latest examination of the Lifeline program. It’s why I sought to address fraud, waste and abuse prior to expanding the scope of the program and pushed unsuccessfully for a host of needed reforms, including the adoption of a budget for the program. I have little confidence, at this point, in the changes adopted by the Commission over the last number of years, or in the ability of USAC to stem the tide of problems. More significant reform is needed, including completely rethinking USAC."

Reactions to Nomination of Brendan Carr for FCC Commissioner

President Donald Trump on June 28 signaled his intention to nominate Brendan Carr, Federal Communications Commission general counsel and a longtime aide to FCC Chairman Ajit Pai, to fill the remaining Republican commissioner seat on the FCC.

FCC Chairman Ajit Pai: “I congratulate Brendan Carr on the President’s announcement that he will be nominated to serve as an FCC Commissioner. Brendan has a distinguished record of public service, having worked at the agency for over five years, including most recently as the FCC’s General Counsel. In particular, Brendan’s expertise on wireless policy and public safety will be a tremendous asset to the Commission. I look forward to working with him in his new role and wish him all the best during the confirmation process.”

FCC Commissioner Mignon Clyburn: “I congratulate Brendan Carr on being nominated by the President to serve as a Commissioner on the Federal Communications Commission. He is well respected on both sides of the aisle and has demonstrated a deep knowledge of the legal and policy issues facing the communications sector, both as an advisor to then Commissioner Pai and now as General Counsel of the agency. Brendan is a great asset to the Commission and I wish him a successful Senate confirmation.”

FCC Commissioner Michael O'Rielly: “I congratulate Brendan Carr on his selection by President Trump for a seat at the FCC. Mr. Carr will be an added voice at the Commission in efforts to reduce senseless regulations and install sound policymaking. I look forward to working with him in his new capacity, pending consideration of the nomination by the U.S. Senate.”

Will Johnson, Verizon senior vice president, federal regulatory and legal affairs: "Brendan Carr is an excellent choice for the Federal Communications Commission. With years of experience at the Commission, he has a deep knowledge and understanding of the critical issues that impact our industry. He’ll hit the ground running on vital issues such as encouraging deployment of 5G and next-generation networks, promoting public safety, and closing the digital divide. Mr. Carr is a dedicated public servant with a strong commitment to market-oriented policies that will foster innovation and investment. We expect him to play an important role as the agency helps usher in a new era of innovation and opportunity in the broadband and communications space.”

Robert Quinn, AT&T Senior Executive Vice President of External and Legislative Affairs: “President Trump’s nomination of Brendan Carr comes at a critical point as our nation embarks on transitioning to the next generation wireless communications infrastructure. His commitment to public service and wide range of expertise, especially in the areas of wireless technology and spectrum policy, make him the perfect choice. Brendan Carr will be a tremendous asset to Chairman Pai and his fellow Commissioners. We urge Congress to quickly proceed with his confirmation.”

Michael Powell, president of NCTA: The Internet & Television Association: “We congratulate Brendan Carr on his well-deserved nomination as FCC commissioner. With his impressive public and private sector experience, Brendan is steeped in the important issues that the FCC will tackle in the coming years. We urge Congress to act quickly on his nomination and look forward to working with Brendan and the entire commission on policies that will promote marketplace investment and innovation for the benefit of American consumers.”

American Cable Association president Matt Polka: "ACA believes Brendan Carr is an excellent choice to serve on the FCC, and we support President Trump for making this nomination. Brendan Carr is a highly regarded attorney with a wide-ranging understanding of modern communications law and regulation. His addition will enhance the FCC's ability to arrive at sound policy conclusions that will serve the public interest, particularly with regard to ensuring that all Americans, wherever they may live, have a robust connection to the Internet. ACA looks forward to working not only with Brendan Carr but also with FCC commissioner-designate Jessica Rosenworcel after both have been confirmed by the Senate," Polka added. "ACA urges the Senate to act on these nominations expeditiously."

USTelecom CEO Jonathan Spalter: “Brendan Carr is an outstanding nominee to round out a full Commission. His wealth of telecommunications experience will help the agency fully realize its mission of protecting consumers while adopting policies that encourage more broadband innovation and investment. In his time at the FCC, he has always worked with integrity, fairness, and a deep commitment to public service. USTelecom and its members look forward to working with Brendan, and we encourage the Senate to confirm him and former Commissioner Jessica Rosenworcel soon.”

Internet Innovation Alliance: “We warmly congratulate Brendan Carr on his nomination to be a Commissioner of the FCC. His long experience and knowledge of communications policy will serve him well in this new position. We expect he will work to ensure that the United States will remain the world’s leader in telecommunications, promoting innovation and competition and remembering that the private sector is the source of innovation more often than the government."

Mobile Future chief policy adviser Robert McDowell: “On behalf of Mobile Future, I congratulate my friend Brendan Carr on being nominated to serve as a Commissioner on the Federal Communications Commission (FCC). Brendan’s broad and deep expertise on wireless legal and policy issues will be a tremendous asset to the FCC as it pursues a forward-looking agenda focused on ensuring that America remains the world leader in mobile communications. Freeing up more spectrum and removing unnecessary barriers that delay the deployment of the infrastructure needed for cutting-edge 5G technologies are essential to spurring the American economy. Brendan has an ideal background and regulatory philosophy to produce policies that will bring positive and constructive change to the benefit of all Americans.”

National Association of Broadcasters president Gordon Smith: "NAB strongly endorses the nomination of Brendan Carr to the FCC. He has a firm grasp on telecom and media law and the right temperament to be a superb Commissioner. We support his swift confirmation."

CTIA president Meredith Attwell Baker: “CTIA and the wireless industry congratulate Brendan Carr on his nomination as an FCC Commissioner. He is an accomplished and talented attorney who understands the importance of wireless to consumers and the U.S. economy. The FCC is focused on a range of wireless issues, including infrastructure siting for next generation 5G wireless networks, and we hope his nomination will be swiftly approved by the Senate.”

Statement Of FCC Chairman Ajit Pai On The GAO Report Finding Significant Risks In The FCC's Lifeline Program

The Government Accountability Office (GAO) released a report finding that deceased individuals had enrolled in the program and noting that GAO could not confirm the eligibility of 36 percent of the subscribers it reviewed. Federal Communications Commission Chairman Ajit Pai issued the following statement in response: “Last year, I led an investigation into the Lifeline program that revealed serious weaknesses in federal safeguards. Today’s GAO report confirms what we discovered then: Waste, fraud, and abuse are all too prevalent in the program. Commission staff and the Office of Inspector General have already been developing recommendations to better safeguard taxpayer funds. I stand ready to work with my colleagues to crack down on the unscrupulous providers that abuse the program so that the dollars we spend support affordable, high-speed broadband Internet access for our nation’s poorest families"

Fox News fans see Trump much differently than the country on the whole

Suffolk University released detailed numbers from a poll it conducted with USA Today, exploring, among other things, how views of political issues overlap with public confidence in various media outlets. In this poll, 60 percent of Republicans identified Fox News as the outlet in which they had the most confidence. Every other network combined for 23 percent. By contrast, only 4 percent of Democrats cited Fox as their most trusted. (Most trusted among Democrats was CNN, at 20 percent.) On issue after issue, those who most trusted Fox News held positions that were much more favorable to the president and his party than survey respondents overall. For example, consider President Trump’s job approval. More than half of the population overall disapproves of Trump’s performance. Among those who trust Fox , 9 in 10 approved. Nearly three-quarters of that group think America is headed in the right direction; overall, half think we’re on the wrong track.

Additional Action Needed to Address Significant Risks in FCC’s Lifeline Program

The Federal Communications Commission has not evaluated the Lifeline program’s performance in meeting its goals of increasing telephone and broadband subscribership among low-income households, but has recently taken steps to do so. Lifeline participation rates are low compared to the percentage of low-income households that pay for telephone service, and broadband adoption rates have increased for the low-income population even without a Lifeline subsidy. Without an evaluation, which GAO recommended in March 2015, FCC is limited in its ability to demonstrate whether Lifeline is efficiently and effectively meeting its program goals. In a July 2016 Order, FCC announced plans for an independent third party to evaluate Lifeline design, function, and administration by December 2020. FCC and the Universal Service Administrative Company (USAC)—the not-for-profit organization that administers Lifeline—have taken some steps to enhance controls over finances and subscriber enrollment. Nevertheless, GAO found weaknesses in several areas. GAO makes seven recommendations, which FCC generally agreed with:
require Commissioners to review and approve, as appropriate, spending above the budget in a timely manner;
maintain and disseminate an updated list of state eligibility databases available to Lifeline providers that includes the qualifying programs those databases access to confirm eligibility; this step would help ensure Lifeline providers are aware of state eligibility databases and could also help ensure USAC audits of Lifeline providers can verify that available state databases are being utilized to verify subscriber eligibility;
establish time frames to evaluate compliance plans and develop instructions with criteria for FCC reviewers how to evaluate these plans to meet Lifeline’s program goals;
develop an enforcement strategy that details what violations lead to penalties and apply this as consistently as possible to all Lifeline providers to ensure consistent enforcement of program violations; the strategy should include a rationale and method for resource prioritization to help maximize the effectiveness of enforcement activities;
ensure that the preliminary plans to transfer the USF funds from the private bank to the U.S. Treasury are finalized and implemented as expeditiously as possible;
require a review of customer bills as part of the contribution audit to include an assessment of whether the charges, including USF fees, meet FCC Truth-in-Billing rules with regard to labeling, so customer bills are transparent, and appropriately labeled and described, to help consumers detect and prevent unauthorized charges; and
respond to USAC requests for guidance and address pending requests concerning USF contribution requirements to ensure the contribution factor is based on complete information and that USF pass-through charges are equitable.

President Trump angrily lashes out at ‘Morning Joe’ hosts on Twitter

President Donald Trump lashed out at the hosts of MSNBC's “Morning Joe” in two vicious tweets on the morning of June 29, calling Mika Brzezinski “low I.Q. Crazy” and claiming that she had a facelift late in 2016. President Trump also called Joe Scarborough “Psycho Joe” and said the hosts came to Mar-a-Lago — his private club in Palm Beach (FL) — three nights in a row around New Year's Eve “and insisted on joining me.” He claimed that Brzezinski “was bleeding badly from a facelift” at the time and that: “I said no!” Brzezinski and Scarborough were both spotted at Trump's New Year's Eve party, according to pool reports at the time, prompting Scarborough to fire off numerous tweets defending his presence there.

At the time, Scarborough said that he and Brzezinski were at the party to set up an interview with the president-elect. At least three GOP senators on Twitter assailed President Trump's attack, saying the insults were "beneath the dignity" of the office of the president. Sens Lindsey Graham (R-SC), Ben Sasse (R-NE) and Susan Collins (R-ME) joined a loud chorus on social media denouncing the president's latest tweets.