Lifeline/Low-Income Consumers

Federal Communications Commissioner Geoffrey Starks spoke about internet inequality during a USTelecom webinar "The Role of Connectivity in Digital Equity and Inclusion." Commissioner Starks said he uses the term internet inequality rather than the digital divide because beyond the issue of access was the issue of affordability. He said there are millions of Americans who simply can't afford the internet. While the rural digital divide is very important, Commissioner Starks said the lack of connectivity in certain urban areas was a problem he was increasingly fixated on.  

The Lifeline program, administered by the Federal Communications Commission, provides a $9.25 monthly subsidy (more on tribal lands) to companies that provide phone or broadband service to low-income consumers, generally at no out-of-pocket cost to the customer. But, less than a fifth of the 38 million households that qualify for the program are actually enrolled. And despite a recent uptick, enrollment remains down sharply from the Obama era. "It's very clear that the program is needed now more than ever," said FCC Commissioner Geoffrey Starks.

Federal Communications Commission Chairman Ajit Pai sent a letter to Sen. Tom Udall (D-CO) on June 22, 2020, to respond to the senator's letter asking the FCC to prioritize relief for low-income citizens by increasing Lifeline support. Chairman Pai said the FCC waived certain Lifeline program rules and allowed Lifeline applicants on rural tribal lands to begin receiving Lifeline benefits while their application was in the process of being verified.

According the latest Census data on computer and Internet use, 85.7% of Americans have fixed-line broadband service in the home. But during the COVID pandemic, it is the 14.3% of broadband “have nots” getting all the attention.

Senators Ron Wyden (D-OR), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), and Chuck Schumer (D-NY) introduced a bill to ensure that millions of Americans can access essential broadband access in the middle of the COVID-19 pandemic. The Emergency Broadband Connections Act – sponsored by 26 Senate Democrats – would provide a $50/month benefit to workers who have been laid off or furloughed during the pandemic, along with a range of other assistance to ensure families can access critical online services.

On June 15, Federal Communications Commission Chairman Ajit Pai wrote to Members of Congress about the FCC's efforts to inform newly-eligible low-income consumers about their eligibility for discounted broadband and telephone service through the Lifeline program. The FCC and the Universal Service Administrative Company (USAC), which administers the Lifeline program, have undertaken numerous efforts to promote Lifeline awareness during the pandemic to ensure that consumers who are newly eligible for the program due to loss of employment or income have the information and resources they need

Just over 100 days ago, Federal Communications Commission Chairman Ajit Pai announced that a number of broadband and telephone service providers had volunteered to take what he calls the Keep Americans Connected Pledge. Over 780 companies took the pledge "in order to ensure that Americans do not lose their broadband or telephone connectivity as a result of these exceptional circumstances." When first announced, the pledge was to last until May 12, 2020.

All five Federal Communications Commissioners testified at a Senate Commerce Committee oversight hearing. Commerce Committee Chairman Roger Wicker (R-MS) said the hearing was an opportunity for Commissioners to discuss what more can be done to expand broadband access and digital opportunity for all Americans.

Far too many Americans are cut off from access to affordable high-speed Internet even as more of our core systems go digital. Unchecked, the result will be an America even more unequal than the one we see today. The United States has failed in the equitable delivery of this public good. The disparity will almost certainly lead to further inequity. No American should suffer the indignity of searching for Internet. Starbucks WiFi is not a social safety net.

The COVID-19 crisis laid bare critical shortcomings in our approach to universal service.  As good as our networks are, broadband accessibility is an issue for some American households. We believe bold action is needed – it is time for Congress to modernize and reform USF (Universal Service Fund) programs and establish a secure funding source for broadband connectivity for all Americans.