The Importance and Effectiveness of the Lifeline Program

The Benton Institute for Broadband & Society is greatly concerned with the preservation and advancement of the Federal Communications Commission’s Lifeline program—a vital Universal Service Fund program that must continue to be improved to achieve its goals, broaden its reach, and expand access to those who can benefit the most. Lifeline was created nearly 40 years ago with the aim of providing low-income households with low-cost landline telephony options. Now, nearly all U.S. households have telephone service and the Lifeline program plays an essential role in ensuring affordability. Prior to the pandemic, the Lifeline program provided mainly wireless communication services for low-income households; however, its $9.25/month subsidy resulted in service plans that restricted voice and data usage. As of June 20, 2021, approximately 6.9 million subscribers were enrolled in the Lifeline program—enrollees include low-income consumers, Veterans, people with disabilities, people on tribal lands, and other eligible Americans. Approximately 94 percent of all Lifeline participants subscribe to a mobile offering. Voice calling is the most important part of Lifeline service for 23 percent of subscribers, but two-thirds (68 percent) say voice, text, and data are all equally important to them.