Clyburn Says FCC Majority's 'Assault on Pro-Consumer Policies' to Continue Thursday

FCC Commissioner Mignon Clyburn decried an "assault on pro-consumer policies" by the majority, which she said "will continue down its destructive path" at Thursday's monthly meeting. “They will make it more difficult for low-income Americans to access affordable communications services" and "will shred consumer and competition protections," she said Wednesday, referring to Lifeline and wireline broadband deployment items. She also slammed expected FCC actions on a new broadcast TV standard and allowing "massive media consolidation" (see 1711150054).

Clyburn's objections support suggestions the FCC is unlikely to change course on two draft items Chairman Ajit Pai circulated to begin overhauling the Lifeline low-income subsidy program (see 1711140020), and to remove barriers to deployment of wireline broadband infrastructure replacing copper (see 1711130041). A 5-0 vote is possible on a wireless item over utility opposition (see 1711150015).

Pai "is focused on closing the digital divide and modernizing FCC rules for the digital age," emailed an agency spokesman. "Consumers benefit when the FCC eliminates needless barriers to broadband deployment and competition and when it gets rid of rules that are stifling innovation and investment in the communications sector. He will continue to fight for the benefits consumers reap from an innovative and dynamic communications marketplace.”

The majority since January has given "the green light to more than a dozen actions" that "are a direct attack on consumers and small businesses," Clyburn said. "Most Americans are unaware that the agency established to protect the public interest has traded in that role for the chance to grant the wish lists of billion dollar companies." Among the actions she listed were moving to undo 2015 "open internet protections" and "lower the bar" on what's considered broadband deregulate business data services, and acting to reinstate a broadcast UHF discount, eliminate rules requiring broadband provider transparency, and adopt a "flawed" mobile competition report. She criticized the majority for failing to address inmate calling service issues and review the $85 billion AT&T acquisition of Time Warner (see 1711150024)

“What consumers want is fast, affordable broadband access," Clyburn said. "What consumers want is access to a free and open internet without fear of being throttled or assessed a toll by their broadband service provider. What consumers desire is programming options that reflect the diversity of their community. Sadly, what they have is an FCC majority that feels otherwise which is why I remain committed to fighting for policies that give voice to those who far too often go unheard.”

Commissioner Mike O'Rielly supports "fixing" the Lifeline program, an aide told us, citing an O'Rielly blog entry that mentioned research (also cited in a GAO report) suggesting the vast majority of Lifeline recipients would subscribe to phone service without the subsidies. O'Rielly would like to see some questions about better targeting funding moved from a draft notice of inquiry to an NPRM, said the aide, who noted the commissioner also supports the wireline infrastructure draft.

Pai's Lifeline draft received some outside support, including from a key lawmaker. Senate Commerce Committee Chairman John Thune, R-S.D., "supports reforms that promote the deployment of broadband infrastructure on rural tribal lands," emailed a spokesman. "The Commission’s reforms further this important goal." The Taxpayers Protection Alliance backed efforts to "reevaluate" the program and direct funds to "where they are the most needed, which will help facilities-based providers maintain service for those on tribal lands and in low-income areas." Resellers "have a history of waste, fraud, and abuse," as documented in a GAO report, making "the FCC’s proposed reforms critical," said TPA, lauding Pai for working to "to bring accountability to Lifeline.”

The Leech Lake Band of Ojibwe in Minnesota opposed the Lifeline draft, saying it was "especially disconcerted with the FCC’s proposal to eliminate resellers from the Tribal Lifeline program." The agency "failed to properly consult with Tribal Nations on the FCC’s" planned changes, said a filing posted Wednesday in docket 11-42. "This failure is unacceptable and an affront to the sovereignty of Tribal nations across the United States. Moreover, it sets a dangerous precedent for future federal agency actions which affect Indian Country." It urged deferral of commission action until consultation occurs.

The FCC proposals are a "mixed bag," said Scott Wallsten, Technology Policy Institute president, noting agency arguments the digital divide would be closed by better targeting funding and opponents' arguments the program would be gutted and the digital divide widened. "The likely outcome, if the proposal is enacted as currently written, will be somewhere in between," he blogged. He said some proposals are positive steps to improve efficiency and some are unlikely to lead to benefits and may increase net costs. He backed a proposed "self-enforcing" funding cap but said cutting out resellers and targeting funding to facilities-based providers is "unlikely to increase network investment," as hoped by the FCC, and he suggested empowering state regulatory reviews could complicate economies of scale. He said the agency hasn't acknowledged it lacks understanding of why many low-income people don't subscribe to broadband, or designed a mechanism to evaluate whether the program helps close the digital divide.