Universal Service Fund

The Lifeline Connects Coalition spoke with staff at the Federal Communications Commission’s Wireline Competition Bureau on May 26, 2017 to discuss the Universal Service Administrative Company’s (USAC) current plan to require Lifeline subscribers to re-prove their eligibility when they are migrated to the Lifeline National Verifier and the significant burden and confusion that will impose on Lifeline participants. The Coalition said obtaining re-proof of eligibility from Lifeline subscribers is likely to be highly unsuccessful and the overwhelming majority of those de-enrollments would be due to consumers’ failure or inability to respond, not their lack of continuing eligibility for Lifeline.

The Federal Communications Commission’s Wireline Competition Bureau released a Public Notice on May 31, 2017 granting, denying and dismissing various petitions related to actions taken by the Universal Service Administrative Company (USAC) on the E-rate program and rural healthcare. Petitions for reconsideration or applications for review of these decisions must be filed within 30 days of the Public Notice.

What’s the next Wi-Fi frontier? And how can we tap into it for public good? A key band of airwaves that companies are seeking is the unused spectrum in lower frequencies that sit between TV channels. The spectrum in the gaps between bands of airwaves reserved for broadcast television offers prime real estate for companies seeking to bolster connectivity. Those unused bands of airwaves, known as “TV white spaces” (TVWS), are a target for Microsoft in particular. The company recently introduced a program to bring free Internet access to rural families to help bridge the “homework gap” in Charlotte and Halifax counties in southern Virginia.

In 2016, New America’s Open Technology Institute also urged the Federal Communications Commission to allow schools to leverage TVWS to give students lacking broadband at home remote access to the school’s high-capacity broadband, which would be subsidized by the federal E-Rate program.

The American people rightfully expect that all federal programs operate as efficiently as humanly possible and are targeted to help those truly in need. As Commissioners at the Federal Communications Commission, we have an obligation – as stewards of federal programs funded by monthly fees on American’s communications bills – to improve the functionality and effectiveness of the programs we oversee, including the Federal universal service fund (USF). Failure to do so would waste consumers’ hard-earned income, diverting it from the intended purposes and undermining public confidence in the programs. We should end the practice of spending scarce USF high-cost support to illogically subsidize the cost of communications services for very rich people who happen to live in the more rural portions of our nation. Because of our budgetary constraints, each dollar spent subsidizing service unnecessarily is a dollar that is not being used to help bring broadband to unserved Americans, particularly those who cannot afford the full cost of service. We seek comment on whether, and if so how, to implement means-testing within the high-cost universal service program.

TeleQuality Communications filed comments urges changes to the Federal Communications Commission rural healthcare-broadband programs, arguing that the Universal Service Fund (USF) rural healthcare, telecom and e-rate schools and libraries programs would be more effective if they did not operate as isolated silos. TeleQuality, an organization that provides network connectivity for healthcare providers funded, in part, through the USF rural healthcare program. The filing includes some compelling data points, along with some creative ideas for potential reforms to FCC rural healthcare-broadband programs – although some readers may find some of the ideas unrealistic. The most compelling data points in the TeleQuality filing:

• The number of physicians serving rural areas is insufficient. The filing cites a Health Resources and Services Administration (HRSA) report that found that a majority of rural counties have 1 practitioner serving 3,500 patients when 1 practitioner per 2,000 patients is recommended for adequate care – a finding that confirms similar data that Telecompetitor has reported previously. There is also a shortage of skilled IT personnel in rural areas, TeleQuality argues – another data point that is consistent with previous research on that topic.
• The number of FCC rural healthcare funding requests from healthcare providers has not increased as dramatically as the amount of funding requested – a phenomenon the filing attributes to the significant bandwidth increases needed to run electronic health records systems. At the same time, the FCC program remains underutilized because some healthcare providers do not have the resources to handle program filing and administration.

FreedomPop is hoping to cash in on the Federal Communications Commission’s overhaul of the Lifeline program, which subsidizes telecommunications services for low-income consumers.

FCC Chairman Ajit Pai directed the agency to eliminate the federal approval process for Lifeline service providers, effectively returning those processes to the state level. Critics say the move will require would-be service providers to undergo a lengthy and perhaps prohibitively burdensome course to extend offerings to Lifeline participants. But FreedomPop, an MVNO that provides wireless services in North America and Europe, is licensing its platform as a way for companies to bring offerings to market through Lifeline more simply and affordably. The company announced a deal with one Lifeline service provider, PWG Solutions, and said it will launch with a few more companies in the coming months.

“It’s pretty much impossible to get certified across 30 states, so you’ve got these (potential service providers) who are just stagnant,” FreedomPop CEO Stephen Stokols said. “Rather than just trying to come in and outdo them, we’re literally just going to empower them, basically extend our technology to these guys so they can modernize.” FreedomPop uses a freemium model to entice users, then upsells them into bigger packages or other value-added services such as additional local numbers for users in foreign lands or a “safety mode” that prevents overage charges. It sells handsets as well as SIM cards enabling customers to activate their own phones.

CoSN and the Alliance for Excellent Education issued two complementary resources for school leaders to advance digital equity and increase broadband connectivity to students nationwide. Advancing Digital Equity and Closing the Homework Gap details the current state of broadband access, its adoption, and its barriers in US communities. The second brief, Advancing Digital Equity: An Update on the FCC’s Lifeline Program, recaps efforts to modernize the Lifeline Program, explains how these changes are at risk, and puts forth ways school leaders can stand up for the program and its positive impact on learning.

In the briefs, the groups underscore current data that paint the picture of broadband access and its implications:

• The Pew Research Center found that 5 million households with school-age children do not have broadband access. Low-income families make up a heavy share of those households.
• According to the Bill & Melinda Gates Foundation, 42 percent of teachers reported that their students lack sufficient access to technology outside of the classroom.
• Results from CoSN’s 2016 Annual Infrastructure Survey show that 75 percent of district technology leaders ranked addressing the lack of broadband access outside of school as a “very important” or “important” issue for their district to address.
• In the same survey, 68 percent of respondents reported that affordability is the greatest barrier to out-of-school broadband access.

Over time, the Lifeline Program has provided critical support for underserved Americans to help improve these trends.

Approximately 140,000+ rural homes across four states -- West Virginia, North and South Carolina, and Tennessee -- have improved broadband access, due in part to Frontier and the Federal Communications Commission’s Connect America Fund (CAF) investments. Impacted states include. With 134,000 homes, West Virginia saw the bulk of these broadband improvements. The CAF directly funded new broadband expansion to 16,900 homes there, with an additional 117,000 households seeing improved broadband capability.