The Federal Communications Commission is planning to modernize a program that has helped tens of millions of low-income Americans obtain basic phone service, the agency's top official said Monday.
FCC Chairman Julius Genachowski revealed plans to circulate an order tomorrow to his fellow commissioners that would reform and modernize the Universal Service Fund's "Lifeline" program.
One of the program's new goals would be to ensure that low-income Americans have access to broadband, Genachowski said, and his proposal includes the creation of a pilot program that would test and determine how Lifeline can be used to increase broadband adoption among consumers eligible for the Lifeline program.
The suggested program would solicit applications from broadband providers and select several projects to fund beginning this year.
"Lifeline would help reduce the monthly cost of broadband service, but applicants would be expected to help address other challenges to broadband adoption, including the cost of devices and a lack of digital literacy," Genachowski said.
Lifeline has benefitted tens of millions of Americans over the past two decades, Genachowski said during a speech in Washington, D.C. However, he cited a number of problems with the program, including reports of telecommunications carriers abusing it by obtaining support for individuals who did not sign up for Lifeline or signing people up for the program who are not eligible.
Genachowski largely attributed recent growth in the program to "waste and inefficiency" and he said Lifeline "is outdated, focused on phone service when high-speed Internet has become our vital communications platform."
Genachowski is suggesting a number of reforms to Lifeline, including a measure that would set a budget for the program.
Lifeline provides discounts of up to $10.00 per month on basic wired or wireless phone service. The Universal Service Fund's "Low Income" program, which includes Lifeline, distributed $1.3 billion in 2010, according to unaudited figures from the Universal Service Administrative Company.
Earlier this year, the FCC enacted other major Universal Service reforms, including the creation of a "Connect America Fund" that the agency anticipates will expand broadband access to more than 7 million U.S. residents of rural areas over the next six years.
Genachowki's draft order will be circulated to Robert McDowell and Mignon Clyburn, who are the only other commissioners left at the agency following the recent departure of Michael Copps and resignation last year of Meredith Attwell Baker, who now works as an executive for Comcast Corp's NBCUniversal.
