Virgin Mobile Says Lifeline Broadband Pilot Drew Few Customers

Participation in Virgin Mobile's broadband Lifeline pilot project was “considerably less” than the company had planned, with only hundreds of customers in any given month instead of the 2,500 anticipated, the company said in a letter to the FCC posted Wednesday in docket 11-42. Requiring a contribution, either upfront or in the form of a monthly recurring charge, even if relatively small, “is a significant barrier to participation,” said the company. “Any broadband Lifeline program should be designed with the extremely cash-constrained consumer in mind.” About 70 percent of Virgin Mobile’s Assurance Wireless Lifeline subscribers report having no access to the Internet at home or elsewhere, and “may not have hardware available to access the internet using broadband service,” the company said. The pilot was part of the agency’s Lifeline broadband pilot program to collect data on how the Lifeline program can be structured to increase broadband adoption among low-income Americans. Virgin Mobile said it offered four options to 104,000 Massachusetts customers and 150,000 Ohio customers. The company said it offered the choice of an initial device fee of $10 or $50, and an activation fee of either $20 upfront with no recurring monthly fees or no upfront charge with a $20 monthly fee.