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TracFone Cites Lifeline Database Delays Under New Rules, Urges Testing of New Verifier

TracFone Wireless reported "significant delays" in verifying consumer Lifeline eligibility and de-enrollments through a national database for the low-income subsidy program after various new FCC rules took effect Dec. 2. TracFone, which calls itself the largest provider of Lifeline service,…

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said it understands other providers may also have had problems with the National Lifeline Accountability Database (NLAD). "For a prolonged period (Sunday, December 4 and Monday, December 5), all of TracFone's IP addresses used in connection with NLAD were disabled which prevented TracFone from having any access to the NLAD system," said a company filing posted Monday in docket 11-42. "TracFone was unable to process any transactions, download reports of NLAD activity, or even to make inquiries as to the status of transmitted orders. ... TracFone was completely shut down without notification during a critical period following implementation of the rule revisions." The provider said it brought the problem to the attention of Universal Service Administrative Co. Dec. 5, but it wasn't able to get its IP addresses enabled until the next day. "That only occurred after TracFone was required by USAC to significantly reduce the throughput of transactions sent for NLAD verification," the company said. "These delays caused many qualified low-income households not to have their applications for enrollment processed and approved and service commenced in a timely manner." TracFone said it and USAC had a series of calls aimed at resolving the problems, and it understood server capacity was being added. The carrier said the problems could have been avoided if NLAD revisions had been "thoroughly tested with Lifeline provider participation and adjusted as necessary." It urged testing of new systems and procedures to prevent similar problems from occurring under a national verifier authorized by the FCC and being developed by USAC. The FCC and USAC didn't comment.