FCC Seen Extending Lifeline to Broadband, but Budget Potential Sticking Point
The FCC is likely to expand Lifeline USF support to broadband and could establish a budget for the program serving low-income consumers, panelists said Wednesday on a webinar hosted by Ball State's Digital Policy Institute. Finding a compromise that exerts fiscal control while allowing low-income consumers to benefit was seen by some panelists as key to obtaining a unanimous vote among commissioners -- who were divided 3-2 along partisan lines on issuing an NPRM in June (see 1506180029) -- though panelists had mixed assessments of the prospects. Some speakers also said the FCC was likely to relieve telecom carriers of responsibility for determining consumer Lifeline eligibility and voiced hope the process could be streamlined by shifting oversight to state agencies already administering other federal low-income programs such as food stamps and Medicaid.
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Former Rep. Rick Boucher, D-Va., said there seemed to be a growing consensus that Lifeline, which has traditionally subsidized voice service, should be extended to broadband coverage so low-income consumers can better tap into the digital marketplace. There also seemed to be much support for shifting oversight of eligibility from Lifeline providers, possibly to state entities already making such determinations for other federal programs, as proposed by FCC Commissioner Mignon Clyburn, said Boucher, honorary chairman of the Internet Innovation Alliance, which advocates giving consumers a Lifeline card akin to a food stamps card. He said those areas of agreement are a "hopeful sign" for the proceeding, though he wasn't prepared to predict a 5-0 FCC vote approving an order, which is still a ways off, with the NPRM comment period still open. Boucher said it was "highly unlikely" the FCC would adopt a hard cap on Lifeline.
Free State Foundation President Randolph May said broadband Lifeline USF is "inevitable," but he doubted the FCC would act unanimously, given "the way that I think this commission is operated." But "ever the optimist," May suggested FCC Chairman Tom Wheeler could appeal to the Republican commissioners by addressing their concerns that the program could expand beyond what they believe is fiscally responsible. "I think if he did that, it would be a good thing,” he said. Saying consumers pay for Lifeline and other USF programs through a 17 percent contribution fee generally collected by carriers (on interstate/international charges), May said he didn't support putting a hard cap on Lifeline spending. He said some program flexibility is needed for Lifeline to provide an effective "safety net," particularly during economic downturns. Instead, he said the FCC should adopt a budget, and if it's exceeded in a given year, the agency could then take a close look at whether changes are needed. Targeting support to the truly needy, imposing fiscal responsibility and cracking down on abuses are important to inspiring the confidence needed to make the program sustainable, he added.
Consumer Policy Solutions President Debra Berlyn said countering waste, fraud and abuse could also generate greater bipartisan support. Berlyn, chairwoman of the FCC's Consumer Advisory Committee, agreed with May's belief in cost control, given that consumers ultimately pay for the program. "There must be some management of overall costs," Berlyn said. She also supports creating a streamlined Lifeline consumer eligibility and enrollment process through state administrators of federal programs, though she called it part of a "makeover," not an effort to tear down the program and start over again.
Nicol Turner-Lee, vice president for the Multicultural Media, Telecom and Internet Council, said the FCC should be able to vote 5-0 to expand Lifeline to broadband, given the needs. But she recognized that combating abuses and controlling costs are necessary: "You cannot have unlimited spending." She suggested Wheeler could craft some sort of compromise to obtain bipartisan support.
Separately, Boston College Law Professor Daniel Lyons called FCC proposals too "evolutionary," saying they should be more "revolutionary." The FCC, in trying to graft broadband onto the traditional voice support program, is trying to fit "a square peg into a round hole," said Lyons, a visiting fellow at the American Enterprise Institute, in an online commentary. "The better solution would be to craft a new broadband-specific program from the ground up," he said, urging the FCC to raise and answer various questions about the best ways to go about constructing a program.