Consumer Groups, State Regulators Resist FCC Facilities-Based Lifeline Plan; NTCH Supportive

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.