Millions could lose low-cost phone service under FCC reforms

Federal Communications Commission Chairman Ajit Pai, appointed to the post by President Donald Trump, wants to remove a majority of wireless providers that participate in the Lifeline program, in an attempt to eliminate “waste, fraud and abuse.” If such a move were made, the “chaos would be magnificent,” said David Dorwart, the chairman of the National Lifeline Association (NaLA), a trade organization that represents Lifeline businesses. Roughly 10.7 million Americans receive text, voice and data under the program and 70 percent would have to look for a new service provider under the proposal, according to NaLA, if an affordable option is even available. The program cost about $1.3 billion dollars in 2017, and the funding comes from the Universal Service Fund, which is collected from subscribers by service providers. “They get their doctor calls, and they reach out to schools, and that won’t be available to them at the cost it is today,” said Dorwart said of Lifeline users. “It’s not only an accessibility issue, it’s an affordability issue.”

“It’s a direct attack on the poor,” said Jessica González, deputy director of Free Press, a consumer advocacy group that supports equal access to communications services. Before attending law school, González participated in the Lifeline program after she was let go as a teacher in the suburbs of Los Angeles. González pointed out that the least connected groups across the country are often minority and low-income groups. “There may not be discriminatory intent, but there certainly will be a discriminatory impact from the proposal. … It’s the cruelest thing I’ve ever seen out of the FCC.”