Lifeline/Low-Income Consumers

On Aug 13, 2020, House Commerce Chairman Frank Pallone (D-NJ) led Democratic Communications Subcommittee members in writing to Federal Communications Commission Chairman Ajit Pai to urge the FCC to provide unlimited voice minutes and unlimited mobile data to Lifeline recipients, with an increase in the basic support amount to offset any associated incremental costs, for the duration of the coronavirus pandemic. 

America’s broadband providers have stepped up with the ‘K-12 Bridge to Broadband” to help meet the needs of millions of low-income American students who are unable to get on the internet so they can go to class from home. The new program will do two things the Trump Federal Communications Commission (FCC) has failed to do. First, it will identify households with students that have broadband passing their door but have chosen not to subscribe.

Verizon agreed to buy TracFone, a provider of wireless prepaid services, in a deal worth up to $7 billion in cash and stock, further consolidating the US cellular market. TracFone, a unit of Mexico’s América Móvil SAB, has about 21 million prepaid customers in the US under its namesake brand as well as StraightTalk and Net10. The company doesn’t run its own physical network in the US and instead rides on other cellphone carriers’ systems for a fee and then resells service under its own brands.

Getting the internet to everyone is not just about tech: It’s even more a policy question, one tied up in politics.

Our networks still don’t reach everyone, and private dollars alone won’t solve this challenge. Our country needs to close that gap, and now is the time for legislators and policymakers to act to ensure the educational and economic success of all Americans by making broadband connectivity more accessible, affordable and sustainable. Market forces and private companies can’t do it alone because of the lack of return on the significant investment necessary to reach all Americans.

Tens of millions of Americans still lack access to affordable broadband, leaving them stranded on the wrong side of the country's stubborn digital divide at one of the worst possible moments in American history. While the Covid-19 crisis is an immense tragedy, it has created an opportunity for Congress to fix this longstanding problem. Several promising proposals already exist, including one in which the federal government would provide a "broadband benefit" in the form of a monthly subsidy to ensure that essential broadband access is affordable for all.

There are almost three times as many Americans without a broadband subscription in blue urban areas than in red state rural areas. The Trump Federal Communications Commission, by focusing its attention on rural areas with a lack of access (i.e., those unable to get broadband) is dealing with only part of the digital divide. The larger part of the digital divide is adoption; those Americans who may have broadband available, but don’t or can’t use it. Here are three solutions the Trump FCC could pursue if they really were dedicated to making the digital divide their “number one priority.”

On June 17, 2020, various Members of Congress wrote to Federal Communications Commission Chairman Ajit Pai to urge the FCC to implement Lifeline waivers for all Lifeline applicants, as the FCC did for rural Tribal residents in June.

Senator Richard Blumenthal (D-CT) led a group of 25 senators in calling on the Federal Communications Commission to boost its Lifeline program to keep students connected as millions return to school both virtually and in person. Since 1985, the FCC’s Lifeline program has made basic internet and telephone service more affordable for low-income Americans and has had bipartisan support.

Much of the focus in policy circles has been on how to expand broadband access to those Americans without it. This is a worthy goal, but we should not lose sight of the magnitude of the other part of the digital divide: the adoption gap. FCC data shows about 35% or approximately 114 million Americans do not subscribe to broadband service at their homes. Cost is often cited as the leading factor for why Americans do not subscribe to broadband even when it is offered. Clearly, we need a strategy to address this gap, too.