Lifeline Carriers Back TracFone Request for Database Access or Verifier Delay; USTelecom Opposed

Lifeline providers endorsed and USTelecom opposed TracFone's emergency petition for the FCC to direct Universal Service Administrative Co. to speed efforts to obtain access to key federal databases or postpone a national verifier's (NV) hard launch. Comments were posted through Thursday in docket 17-287. Sprint noted the databases contain information on consumers who participate in Medicaid, food stamps and other federal assistance programs. "Automated access to this information will help the NV to verify an end user’s ... eligibility to receive the federal Lifeline benefit in an efficient and user-friendly manner, and will reduce the need for resource-intensive manual processing" that's costly for providers and "cumbersome and frustrating for end users," said Sprint in docket 17-287. The FCC should instruct USAC to set the NV hard launch dates only after application programming interfaces and database connections are implemented, said Q Link Wireless, noting its own API petition (see 1808130034). The National Lifeline Association said FCC policy goals were undermined by USAC's initial, soft launch without automated database access to Lifeline-qualifying programs "while simultaneously refusing to accept eligibility documentation from third-party sources such as Managed Care Organizations." Sage Telecom Communications (TruConnect) also supported the petition but asked if the agency moves forward without access to key databases, it allow documentation through such third parties. USTelecom, citing the goal of combating Lifeline abuses, said the FCC shouldn't let delayed access to the databases disrupt the transition to the NV, but instead should work with USAC and states to ensure timely access to the necessary databases. A telecom consultant disputed FCC claims, based on a 2017 GAO report that Lifeline resellers caused extensive program abuses. The report "in no way supports the Commission’s assertions regarding the scale of actual waste, fraud and abuse within the program, let alone its allegations of 'unscrupulous' behavior by resellers," said Gately Consulting, in a letter to House and Senate Commerce Committee leaders posted in the docket. Gately said GAO used a "flawed methodology to verify eligibility," relied on data intended for other purposes, and the "data fell within the statistical error range."