FCC Boosting Lifeline Standards, Long Planned, Causes Confusion, Caution

The FCC boosting some standards for what type of broadband is eligible for Lifeline government subsidies caused some stakeholder confusion in the hours after Thursday's release at 3:13 p.m. EDT. Some state telecom and industry representatives were puzzled why the otherwise routine-looking staff action came as a CTIA et alia petition is pending (see 1906280012). The agency replied that the action was previously mandated. The Wireline Bureau public notice came a day after NARUC members approved a resolution asking the FCC to not make such changes (see 1907230040). The PN noted it's delivering on what a 2016 order envisioned.

The PN may have some good news for those who want the FCC to stand down on changes to the program until it can be studied further or fixes made. "The Lifeline minimum service standard for mobile voice service will remain unchanged, at 1,000 minutes per month," it said. Part of NARUC's resolution seeks to maintain the full $9.25 monthly per subscriber federal subsidy "for voice services at the December 1, 2018, service levels and not phase-down or eliminate support for voice services as it has proposed for 2019 to 2021."

What the bureau is saying it's changing as of Dec. 1 centers on broadband. NARUC voted to ask the FCC to "freeze the broadband minimum service standards for Lifeline at the December 2018 levels -- 2 GB per month/household at $9.25 -- until the FCC concludes its 2021 Lifeline Study and determines an appropriate standard based on usage data available at that time." The PN announced "newly calculated minimum service standards for fixed and mobile broadband" to be effective Dec. 1. The fixed broadband minimum will be 20 Mbps downstream and 3 Mbps up, with some exceptions, and data of at least 1,024 GB monthly. Mobile broadband will rise to 8.75 GB a month "pursuant to the calculations set out in the 2016 Order" as speed "remains 3G mobile technology." The 2020 budget rises based on inflation to some $2.39 billion.

Stakeholders couldn't be certain whether the PN is solely standard procedure under the Lifeline order, or whether it additionally signals anything about how the agency might react to the petition from CTIA and others and to the NARUC request. Comments are due July 31 (see 1907010055) on the petition by CTIA, the National Consumer Law Center, National Hispanic Media Coalition, OCA-Asian Pacific American Advocates and United Church of Christ, Office of Communication. They noted this USF program would increase severalfold minimum required broadband data usage and phase down funds for voice services. Only UCC commented now, while others declined to comment, as did the Competitive Carriers Association.

"This is just a procedural notice," emailed Cheryl Leanza, a UCC lawyer. "The FCC always announces the upcoming changes six months ahead. Since the Bureau is still considering our petition the process will continue until the bureau renders a decision."

PN Was Required

An FCC representative answered our questions following stakeholder uncertainty.

The 2016 order mandated the changes in the PN be released by July 31, with the Dec. 1 standards update, an FCC spokesperson noted Friday. The agency is making these changes in this manner and now because of what the past order requires and its methodologies for calculating certain standards, the spokesperson said. As for why the PN was issued without changes stakeholders seek, he emailed that the agency "sets rules and must follow them until it changes those rules by going through the normal processes of comment, deliberation, and action or decision not to act."

The increase in the mobile data minimum, while a little less than NARUC had calculated, still is similar to what the group feared, noted resolution co-sponsor Sarah Hofmann. Vermont Public Utility Commissioner Hofmann said since most carriers sell monthly data capacity as say 5, 10 and more GB, the new threshold would fall under a 10-some offering. These 1,000 monthly minimum only applies to mobile service, noted the FCC spokesperson. "There are no further changes to the minimum service standard of 1,000 mobile voice minutes after" Dec. 1, 2018, under the rules, he added.

The resolution's "biggest concern was that the FCC has plans to decrease the amount of support" to voice-only plans, falling by some $2 monthly per person to about $7.25, said the Nebraska Public Service Commission spokesperson who presented the item at NARUC's meeting: With the notice silent on that point, that could be seen as positive for such advocates. The PN also doesn't say the 1,000 monthly minutes that voice-only Lifeline subscribers should get will change, which also reflects what NARUC seeks, the Nebraska representative added. The FCC spokesperson confirmed that's the case for wireless.

The past order doesn't require a PN like this one on the voice support phase down, the federal regulator's spokesman emailed us. "Carriers are aware that the voice support phase-down will take effect. By contrast, the other standards were subject to review by the bureau, which uses FCC data to determine if a new standard is warranted, following the methodology set out in the rules. Carriers would not know what that new standard is absent a PN."

The state regulators who sponsored NARUC's resolution weren't fazed, thinking this action doesn't prejudge what the FCC might do on their request. NARUC and its Telecom Committee didn't comment.

"Knowing the review process at the FCC," U.S. Virgin Islands Public Service Commissioner Johann Clendenin emailed that he's "fairly certain this was an independent action." UCC's Leanza also wasn't worried.

It's "probably something that they probably had ready to go" at the federal commission, said Nebraska Public Service Commissioner Crystal Rhoades Friday. "We’re going to continue to talk to them, try to get them to change their minds." Rhoades noted NARUC likely hadn't formally told the FCC of the resolution, though the agency likely read about in the "trade press." As "we just passed the resolution" and "it takes some time for everybody get back from their travels, and set up meetings and talk to them. So this is probably just what they were planning to do."