Most early commenters resisted FCC Lifeline proposals to retarget low-income USF subsidy support toward facilities-based broadband providers and away from resellers. Consumer groups and state regulators opposed the plan, NTCH was supportive, and a group against government waste urged the agency to pause for now. Some comments were filed last week in docket 11-42 on an NPRM and notice of inquiry, even though the FCC Tuesday extended the Jan. 24 deadline to Feb. 21 (see 1801230042). The proposals would eliminate subsidies for wireless resellers, cutting off about 70 percent of Lifeline participants, and move support from urban to rural areas, said Consumer Action, opposing capping program funding and requiring subscriber co-pays. A Pennsylvania collection of low-income individuals, service providers, organizations and consumer groups objected to the proposed facilities-based focus, said voice-only support shouldn't be phased out, and opposed proposals for a hard budget cap and lifetime limits. The LGBT Technology Partnership also opposed cutting off support to resellers. State regulatory commissions from Michigan, Missouri, Indiana and Minnesota expressed concerns about the proposed move to facilities-based support. New York City Council Member Peter Koo of Queens opposed FCC proposals that would scrap service to "75 percent of current participants," shift voice support to rural areas, cap Lifeline benefits and cap the program's funding. Backing the FCC proposals and asking that its previous petition for reconsideration be deemed granted, NTCH said that agency "forbearance" from applying a "facilities-based requirement" of the Communications Act "has led to massive fraud and abuse, a drain on the USF Treasury, and hoodwinking of consumers." Citizens Against Government Waste urged the FCC to wait and reconsider the proposal after it sees whether implementing a national verifier of consumer eligibility cuts down on abuse. Minnesota supported FCC proposals to restore full state ETC authority; Michigan backed removing federal broadband designations, with modifications for states lacking broadband regulatory authority; and Missouri said states need flexibility to make Lifeline program adjustments.
An FCC Lifeline plan "jeopardizes over 12 million low-income Americans' access to telephone services," and "threatens" program support for broadband access, said a National Association for the Advancement of Colored People "action alert" posted Friday in docket 11-42. Asking people to file comments in the proceeding, the NAACP provided a sample letter urging the FCC to reject "draconian proposals." Comments are due Wednesday and replies Feb. 23 on a Further NPRM and notice of inquiry adopted Nov. 16 and released in a Dec. 1 text with an order (see 1712010042) and 1711160021). The National Hispanic Media Coalition asked the FCC for an eight-week comment extension. It "would be prudent" to delay the due dates, "given the enormous impact that this proceeding could have on the Lifeline program and individuals who rely on the program for their vital communications needs, and in particular the millions of Americans still reeling from hurricanes in Puerto Rico and the U.S. Virgin Islands who are struggling to connect to basic necessities like water and electricity, let alone communications services," said an NHMC motion posted Thursday.
Comments are due Jan. 24, replies Feb. 23 on an FCC Lifeline NPRM and notice of inquiry on proposed and possible changes to the low-income subsidy program, said a notice to be published in the Federal Register Tuesday. The NPRM, NOI and an order were adopted 3-2 by commissioners Nov. 16 and released Dec. 1 (see 1711160021 and 1712010042). Under a separate rule to be published in the FR Tuesday, the Lifeline order will take effect Feb. 15, with some exceptions: Section 54.411 changes -- scrapping "port freezes" that locked Lifeline broadband and voice customers into provider services -- will take effect March 19; information-collection requirements won't take effect until after approved by the Office of Management and Budget. (See here for FR information on deadlines for January items.) An FCC robocalling order adopted Nov. 16 (see 1711160054) will take effect Feb. 12, said a rule published by the FR Friday.
Civil rights groups are blasting an FCC Lifeline draft item on the agenda for Thursday's commissioners' meeting. The draft last week came under attack from the wireless industry, civil rights groups and tribes (see 1711090057). "We expressed grave concern with respect to several elements of the Draft Lifeline Order/NPRM that we believe will immediately diminish or destroy the program," said a filing of the Multicultural Media, Telecom and Internet Council and others posted Monday in docket 11-42 on an earlier meeting with an aide to Commissioner Mignon Clyburn. The groups asked the FCC not to target Lifeline broadband support to facilities-based providers only -- eliminating resellers -- nor to propose a hard annual cap or any "maximum discount" or "minimum payment" requirements. The Leadership Conference on Civil and Human rights urged the FCC "to immediately reverse course." The Schools, Health & Libraries Broadband Coalition and others wrote all five commissioners to say they're "very concerned about the direction of the proposed reforms" in the draft's NPRM, which they said "could make it impossible for many low-income consumers to obtain access to affordable broadband services."
BALTIMORE -- State members of the Federal-State Joint Board on Universal Service are ready to recommend how to revamp USF contribution, said State Chair Chris Nelson at a NARUC meeting. State members met unofficially Sunday without their FCC counterparts, Nelson told us. Monday, the NARUC Telecom Committee delayed voting on two competing Lifeline resolutions, but voted for a draft resolution to support requiring direct dialing of 911 in hotels and other enterprises.
Stakeholders objected to proposed FCC Lifeline actions in a draft item on the agenda for next Thursday's commissioners' meeting, with many against a possible move to eliminate low-income funding support for resellers. Wireless industry parties, civil rights advocates, tribal groups and others voiced concerns about the combined draft orders and notices, in meetings and filings posted Wednesday and Thursday in docket 11-42.
Expect lively debate about Lifeline at the NARUC annual meeting Nov. 11-15 in Baltimore, said Telecom Committee members and staff in interviews. In separate NARUC telecom draft resolutions, Nebraska Public Service Commissioner Crystal Rhoades and District of Columbia PSC Chairman Betty Ann Kane disagreed whether Lifeline should support reseller services (see 1710310051). The conflict is likely to be the “hot item” at the NARUC meeting and already is spurring discussion and lobbying, said NARUC Telecommunications Staff Subcommittee Chair Lynn Notarianni, from the Colorado Public Utilities Commission. A less contentious draft resolution aims to show a united front by states in favor of requiring direct dialing of 911 in hotels and other enterprises, said Colorado PUC Commissioner Wendy Moser.
The Senate Commerce Committee ruled out plans for a hearing next week on the FCC Lifeline USF program despite earlier interest, a spokesman told us. Senate Commerce Staff Director Nick Rossi told reporters after a markup that the committee was interested in scheduling a hearing on the issue if there were certainty that the Senate wouldn't be in recess then. Senate Commerce Chairman John Thune, R-S.D., told reporters he believed the chamber was likely to recess at the end of this week, making a hearing before Labor Day unlikely. The hearing appeared likely to center on issues GAO identified in a June report on the program's continued management “weaknesses” (see 1706290037), two lobbyists said. Rep. Austin Scott, R-Ga., recently refiled his End Taxpayer Funded Cell Phones Act (HR-3546) in a bid to curb the Lifeline program. The bill failed on the House floor last year (see 1606220020).
The tone of the House Communications Subcommittee’s Tuesday FCC oversight hearing is likely to turn on the degree to which Chairman Marsha Blackburn, R-Tenn., and other Republicans focus on Blackburn’s draft FCC reauthorization bill at the expense of other hot-button policy issues, communications sector lobbyists told us. House Democrats are likely to air pent-up grievances about controversial topics, particularly the May NPRM examining 2015 net neutrality rules and reclassification of broadband as a Communications Act Title II service, lobbyists said. Senate Commerce Committee Democrats repeatedly referenced their concerns about a potential rollback of the rules amid a confirmation hearing last week for Chairman Ajit Pai and Commissioner nominees Brendan Carr and Jessica Rosenworcel (see 1707190049). Pai and FCC Commissioners Mignon Clyburn and Mike O’Rielly are to testify at the hearing, which will begin at 10 a.m. in 2123 Rayburn.
GAO criticism of FCC Lifeline USF oversight should be analyzed and put in context, said Davis Wright attorney Danielle Frappier, who represents Lifeline wireless providers, in a Friday blog post. She noted some characterized GAO's Thursday report as confirming that waste, fraud and abuse in the low-income subsidy program are "prevalent" and "everything" has gone wrong (see 1706290037). "No one asserts that the program is perfectly structured or administered. And, where corrections and improvements in the program can be made, they should be made," wrote Frappier. "But there are some significant limitations on the data and analysis in the report of which readers should be aware. Probably most importantly, the report is based on data from 2014, and therefore necessarily takes virtually no account of the many additional safeguards and improvements that have been made." She cited specific FCC efforts to improve Lifeline enrollment verification procedures and "some real difficulties in doing large scale comparisons of data cross multiple databases," as GAO did. "The report notes that the Improper Payments Information Act rate for the Lifeline program was 0.45 percent in 2015. That is quite a low number -- lower than for the E-rate program, which in that same year was 6.33 percent (see the FCC Fiscal Year 2015 Agency Financial Report at p. 88) and much lower than the typical improper payment rates for programs such as Medicare, Medicaid, veterans’ benefits, etc.," she wrote. "As a result, the appropriate reaction to an improper payment rate of less than one-half of one percent is to use this data to continue to make improvements to the program, not to treat the program as in any sort of crisis calling for an urgent or hysterical response." The National Grange issued a statement Thursday urging continued support for Lifeline. An FCC Wireline Bureau public notice Thursday in docket 11-42 reminded Lifeline providers of their primary responsibility to ensure the eligibility of consumers seeking program support.