Industry, Public Interest Groups Clash Over CPUC Proposed LifeLine SSA Freeze
Industry and public interest groups disagreed last week about whether the California Public Utilities Commission should temporarily freeze the state LifeLine specific support amount (SSA) for wireline and wireless providers. The CPUC is considering freezing the SSA at $19 beginning Jan. 1 until a new methodology is calculated (see 2406040032).
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AT&T opposed the proposed decision, saying the price that was used to set the SSA was "incorrect." The proposed decision’s "reliance on the incorrect price leads to the erroneous conclusion that the freeze is reasonable" and "should be corrected to revise the SSA," the carrier said. AT&T argued there's "no evidence" that the existing methodology "poses significant issues for wireline service." Should the commission adopt the temporary freeze, AT&T asked that it not be less than $20.65.
A coalition of Lifeline advocates and providers urged that the CPUC abandon the proposal. "The SSA should continue to increase annually to account for inflation and the loss of the affordable connectivity program," said the National Lifeline Association, Boomerang Wireless, SafetyNet Wireless, American Broadband & Telecom Company, i-wireless and TruConnect in joint comments. "Currently, any additional support for low-income households in California is welcome and necessary," they said.
The proposed decision "rests on faulty premises throughout," TruConnect added in separate comments. It "mistakenly uses exceptional, one-off data from during the [COVID-19] pandemic to draw conclusions about the current time," the provider said. TruConnect suggested the commission continue calculating the SSA under the current methodology and establish a working group to provide more information.
The CPUC "has yet to complete the holistic review it committed to taking," said Cox Communications. Although the ISP opposed adopting a freeze for wireline providers, it suggested that if a freeze is adopted, it should last no more than one year. "To kick-start the work necessary to do so, the commission could direct staff to issue an updated staff proposal by the end of the first quarter 2025" that includes a proposed methodology and minimum service standards, Cox said.
Tracfone said the proposed freeze is "appropriate," noting it would "prevent further disruption while the CPUC undertakes a more thorough rulemaking process." The carrier urged the commission to consider "all relevant information" before making any major changes to the SSA. A coalition of 13 small local exchange carriers (LEC) agreed, saying the proposed freeze is "a necessary interim measure" for the commission to update the SSA methodology. The carriers suggested the freeze be set at not less than $20 to "avoid either an increase to the small LECs LifeLine rates or a shortfall."
The methodology for calculating the SSA for LifeLine subsidies "is not working as intended," said the Center for Accessible Technology. The group supported a temporary freeze on the SSA and asked the commission to clarify that it will adjust the authorized SSA on an annual basis until a new methodology is approved. The Utility Reform Network (TURN) suggested a freeze of not more than two years. A maximum freeze of two years would "double the current annual interval for re-evaluating the SSA," it said.