FCC Rules to Provide Free Wireless Service
Eligible telecom carriers (ETCs) offering free wireless service to Hurricane Katrina survivors could get an estimated $39 million reimbursement under new FCC Lifeline rules, the agency said in an order. The rules, in effect until March 1, will cover only households eligible for individual housing assistance under FEMA rules, it said. Eligible customers will receive a free handset and a package of at least 300 min. of use, up to $130 in value per household, until March 2006.
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“We find that $130 per household is a reasonable amount of support… based on the variety of the competitive plans available to consumers throughout the United States,” the FCC said. The support will “assist in the recovery from the economic damages caused by the hurricane” and “promote public safety by ensuring that disaster victims have ready access to E-911 capability,” it said. The FCC said such support is consistent with Sec. 254 of the Telecom Act, because “it is reasonably necessary to ensure that low income consumers have immediate access to telecommunications service.” The agency used its Title I authority to include free wireless handsets.
The FCC said it will let non-ETC carriers get USF support until March 1 to accomplish this special relief. About 65 wireless carriers are designated ETCs in Ala., La. and Miss. The FCC said those ETCs and those other states “may not be sufficient to implement this temporary rule in time to help with Hurricane Katrina disaster relief or may not be certified in areas where they now need to provide service.” Carriers seeking reimbursement should submit Form 497 and other requisite papers, the FCC said. They must demonstrate the provision of supported services to hurricane victims.
The Commission expects wireless providers to try to draw new customers, for example, by offering more free minutes as part of the package or providing extra minutes to consumers who don’t need a new handset, it said. The FCC said customers to keep the wireless phones and to be able to buy additional minutes at discounted rates after the program ends. Many prepaid wireless carriers, such as TracFone, will provide a customer bonus minutes for future airtime purchases, it said. Wireless carriers can’t require customers to sign long-term contracts or require service beyond 300 min. or March 1, whichever comes first, the Commission said. But customers can stay with the carrier after the offer’s expiration, it said.
The FCC also: (1) Adopted Link-Up rules to defray costs of reconnecting households to telecom networks. (2) Allowed health care providers to seek support for advanced telecom and information services used for telemedicine applications. (3) Opened a new application window to let schools and libraries in affected area and those serving more students due to the storm resubmit requests for E- rate funds for this year. (4) Assigned the E-rate program’s highest level of priority to schools and libraries in the affected areas for funding year 2005 and 2006. (5) Clarified that under rules for receiving high- cost support, carriers in the disaster area may use high- cost support funds received for high-cost areas in Ala., La. and Miss. to help rebuild storm-damaged facilities. The moves were urged by Chmn. Martin at the Commission’s Sept. meeting (CD Sept 16 p5).