Lifeline/Low-Income Consumers

Today, there’s a glaring inequity in one crucial area that guarantees inequity in myriad others: Internet access.

For the past four years, the Federal Communications Commission's Lifeline program has been dogged by neglectful leadership and repeated attacks from the commission under Chairman Ajit Pai. As the COVID19 pandemic and a persistent digital divide exacerbate income, racial, and geographic inequities, this program has been stifled at a crucial time. In this paper, we review the myriad attacks that Lifeline has endured during the Trump Administration—and build a blueprint for a better path forward.

This is the twenty-third report in a series prepared by federal and state staff members for the Federal-State Joint Board on Universal Service. The findings are reported in seven sections: Section 1 of the report provides an update on industry revenues, universal service program funding requirements, and contribution factors. Sections 2 through 5 provide the latest data on the low-income, highcost, schools and libraries, and rural health care support mechanisms.

The $3.2 billion Emergency Broadband Benefit Program, which promises up to $50/month towards broadband service, is a real step in the right direction.  But those dollars will be quickly exhausted.

Four specific steps government, with industry’s cooperation, can take to make availability and affordability a reality for every American:

During the COVID-19 pandemic, the necessity of broadband became incontrovertible. Attending school, working from home, visiting a doctor, and accessing government services all relied on reliable broadband connections. For many, bridging the digital divide emerged as an even-more-urgent priority. We’ve tracked the stories that best explain the complexities of the digital divide and the crucial policy responses. Here’s our list. 

The National Lifeline Association challenged the Federal Communications Commission's November 2019 Lifeline order which restored the role of states in designating eligible telecommunications carriers (ETCs) to participate in the Lifeline program, clarified the obligations of participating carriers, and took steps to improve compliance by Lifeline ETCs and reduce waste, fraud, and abuse in the program. The issue in this case concerns support payments to ETCs for prepaid Lifeline subscribers in cure periods because of their non-usage of the service.

The Federal Communications Commission is directing a group of mobile service providers to respond to a questionnaire about customer usage and costs. The responses of this group, encompassing a significant portion of the Lifeline marketplace by subscribership, will aid the development of the State of the Lifeline Marketplace Report. The FCC also expects this data to inform the policy choices before the FCC regarding the mobile broadband minimum service standards—standards established in 2016 and annually updated.

How much do consumers pay for internet service in the United States? The question might seem relatively simple, but the answer has stymied the federal government for years—because no agency collects this data. Throughout 2020, my organization, New America’s Open Technology Institute, published the Cost of Connectivity series to crack open the black box of internet pricing.