Radio News: FCC Chairman wants to change Internet subsidy for poor

Mar 05, 2018 10:50 pm
Ars Technica reports Federal Communications Commission chairman Ajit Pai now has a policy proposal that both conservatives and liberals don't like, one that corporations and activists are against. In December, Pai's Republican majority voted 3-2 to create a Notice of Proposed Rulemaking change Lifeline, a federal program that gives folks of lesser means a $9.25 monthly household subsidy to pay for Internet and/or phone service. While more than 70 percent of the people using the Lifeline subsidy buy plans from resellers, companies that buy capacity from network operators and then resell it directly to consumers, Pai wants to force Lifeline customers to only use "facilities-based broadband" providers. Forcing poor people to use their subsidy with companies that operate their own networks, is even opposed by those companies. AT&T, Verizon, T-Mobile USA, and Sprint operate their own networks. In comments to the FCC proposal Sprint said, "Resellers have played an important and legitimate role in providing competitive broadband and voice service to low-income consumers, and their elimination could have a significant impact on participation in the Lifeline program." Verizon made similar comments. "The proposed exclusion of resellers from the Lifeline program would be highly disruptive to existing Lifeline beneficiaries and is at odds with the Commission's goal of supporting affordable voice telephony and high-speed broadband for low-income households," Verizon wrote. T-Mobile and AT&T did not submit comments on issue, but it is difficult to find anyone in favor of the measure. The deadline for filing comments was on February 21, although reply comments can be made through March 23. After that, the full commission may vote on it making it policy.
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