Lifeline/Low-Income Consumers

This digital divide has always left children and adults alike with fewer educational and economic opportunities. But with schools, libraries, and workplaces closed during the coronavirus pandemic, those without broadband are struggling to access schoolwork, job listings, unemployment benefit applications, and video chat services that others use to keep in touch with friends and family. For those on the wrong side of the digital divide, working from home isn’t an option.

New America’s Open Technology Institute called on the Federal Communications Commission to use its existing authority and universal service budget to extend connectivity to students without broadband access to help facilitate remote learning during the COVID-19 pandemic. In the emergency request filing, OTI urges the FCC to act to empower schools and libraries to close the homework gap using the Universal Service Fund (USF) and E-Rate and Lifeline programs. 

Verizon is one of numerous home-Internet providers offering temporarily free service to low-income households during the pandemic. But a big restriction on Verizon's offer makes it impossible for many people to get the deal. Verizon on March 23 said it would provide two months of free home-Internet and phone service for current low-income subscribers in the Lifeline program and $20 monthly discounts for new low-income subscribers. The $20 discount lowers the starting price for 200Mbps Internet to $19.99 a month.

Sen Ron Wyden (D-OR) led a group of his colleagues to demand better mobile internet service for low-income Americans impacted by the novel coronavirus (COVID-19) pandemic. The federal Lifeline service program, administered by the Federal Communications Commission, provides free and discounted voice, text and cellular internet service to 9 million low-income Americans. The senators requested Lifeline service providers take a number of steps to expand their service:

Between Jan 29 (shortly after COVID-19 appeared in the US) and March 26 there was a 105% spike in people active online at home between 9:00 am and 6:00 pm. So why hasn’t the internet ground to a halt? The answer lies in the lessons of Mother’s Day and freeway traffic jams.

In statements about the Federal Communications Commission's proposed $6 million fine against TracFone for violating FCC Lifeline program rules, FCC Commissioners Jessica Rosenworcel and Geoffrey Starks called for expanding the Lifeline program. Both agreed the penalty for TracFone was appropriate, but that it is time to have a bigger conversation about Lifeline.  

The Federal Communications Commission proposed a $6,013,000 fine against TracFone Wireless, a prepaid wireless provider offering Lifeline service under the SafeLink Wireless brand, for apparent violations of the FCC’s Lifeline program rules. TracFone apparently claimed federal Lifeline funding for customers who were not actually determined to be eligible for the program, which helps make communications services more affordable for low-income Americans.In 2018, TracFone apparently sought and obtained federal Lifeline support for hundreds of ineligible subscribers in Florida.

With few funds dedicated to expanding at-home internet access in the $2.2 trillion “phase three” economic stimulus package, broadband advocates and the telecommunications industry are starting to push for the Federal Communications Commission and Congress to ensure that the government prioritizes expanding and funding existing subsidy programs in the next relief legislation to bring more Americans online as the coronavirus continues to spread.

Over 10 million newly-unemployed Americans are being urged if not ordered to shelter in place for their own health and that of their communities. A broadband connection makes it possible for their children to continue to learn, for workers to look for new jobs, and for families to connect with doctors and loved ones. Fortunately, the Federal Communications Commission has a tool that can keep these people connected, the Lifeline program.