States Struggle to Meet Lifeline Deadline, Say Commissions, Industry
CTIA warned the FCC to avoid a “premature schism” between state eligibility programs for Lifeline and the updated federal program as a Dec. 2 implementation deadline nears. The group joined state commissions and industry groups supporting a USTelecom petition to give some states more time to align their Lifeline rules with changes to the federal program that added broadband as a supported service to the low-income program. USTelecom asked for temporary waiver of certain rules so Lifeline providers can continue enrolling consumers in the federal USF low-income subsidy support program based on state-specific criteria in 25 states, Puerto Rico and Washington, D.C. State support was expected in comments due Friday in docket 11-42 (see 1610180028).
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Granting temporary waivers to states will advance FCC efforts to streamline Lifeline and “will be in the best interest of equity and the public,” CTIA commented. “Although states may be working to harmonize their own rules with the new federal rules, it appears unlikely that all states will be able to complete this process by December 2, 2016. By granting USTelecom’s petition for waiver, the Commission will smooth the transition to the new eligibility rules and avoid severing the link between federal Lifeline and existing state eligibility verification programs.”
Granting the petition also would lessen low-income consumer confusion and allow a more-seamless transition to the national verification process, CTIA said. “Low-income consumers could suddenly qualify for only federal support, only state support, or qualify under different programs to receive both state and federal support,” it said. “The federal and state Lifeline rules, requirements, and forms are already complicated enough for low-income consumers to navigate. A disconnect between state and federal programs would only multiply this effect.”
Supporting the USTelecom petition, the Michigan Public Service Commission outlined a complex procedure for bringing its program in line with the federal program. Changing the Michigan Lifeline eligibility databases, which are operated by a separate department, requires technical changes including “the backend processes of how information is entered, coded, and the recoding of information,” the PSC said. The changes could cost at least $16,000 and take a minimum of six to eight months, it said.
Michigan lawmakers will need to amend telecom law, the PSC added. The Michigan Telecom Act includes eliminated federal programs and doesn’t include the new program for veterans and their survivors, the PSC said. “As is the case at the federal level, state statutory changes take time to come to fruition.” With election campaign season in full swing and the winter holidays coming, it would be nearly impossible to enact statutory changes by Dec. 2, it said. “Should legislative changes be necessary, it is more plausible that undertaking such an effort would commence when the Legislature convenes for a new two-year session in January 2017.” The PSC may need to issue two or three orders on Lifeline, including one to implement legislative changes, it said.
Other jurisdictions supporting the USTelecom petition included the Missouri PSC and the Puerto Rico Telecommunications Regulatory Board. The Missouri commission said earlier in the week it must complete a lengthy rulemaking process to align with the federal rules (see 1610190040).
The Ohio Public Utilities Commission hasn’t even started a proceeding to address rule alignment, said the Ohio Telecom Association. “A waiver is warranted in light of the difficulty in implementing the revised rules in states that have rules that would have permitted Lifeline providers to enroll participants based on state specific programs.” State telecom associations in Missouri and Michigan also were supportive.
Kentucky is one state that didn’t comment on the petition; its Public Service Commission decided last week to conform its program with the new federal rules. “There is no reason to deviate from such requirements at this moment,” the PSC said in the Wednesday order. “ETCs designated in Kentucky should amend their Lifeline tariffs, where necessary, and applicable marketing material to comply with the FCC's changes in Federal Lifeline eligibility and the establishment of minimum service standards.” The state commission required wireline ETCs to file within 20 days of the order updated tariffs that will be effective Dec. 1, and wireless ETCs in the same timeframe to file their updated Lifeline offerings. ETCs must notify customers of changes to rates, services and eligibility criteria, the PSC said.