The Lifeline program allows low-income households to afford phone service and broadband Internet and access to jobs, healthcare, and educational resources.
Access to affordable communication services is essential for ensuring families can stay connected, find employment, and be safe in emergencies.
Eligibility
The Lifeline Program provides discounts on home telephone service and mobile phone services for eligible low-income households. It also provides discounted broadband internet in some states. The Universal Service Administrative Company (USAC) is in charge of overseeing the Lifeline Program. The determination of eligibility is contingent upon the level of disability, participation in particular government assistance programs, and household income. Documentation is required, such as pay stubs or tax returns. The program also requires providers to verify subscribers’ Eligibility and report usage and compliance to USAC.
Hundreds of nationwide wireless and broadband providers participate in the Lifeline Program. These providers are designated as eligible telecommunications carriers (ETCs) by their state regulatory commissions or the Federal Communications Commission and receive reimbursement from the Universal Service Fund for each subscriber they serve. Some state agencies are also responsible for the program’s administration, including the verification process.
What is the lifeline program? The Lifeline Program can be an essential resource for low-income consumers to bridge the digital divide. It must continue to be available for those who need it most. However, efforts to limit market participation may jeopardize the program’s effectiveness. For example, recent proposals to rescind the approval of nine wireless resellers and eliminate support for standalone broadband are not in the best interests of Lifeline subscribers. These efforts may have the unintended effect of reducing Lifeline participation by requiring applicants to visit a National Verifier or presenting documentation multiple times, potentially resulting in delays and rejections.
Benefits
In addition to a monthly discount on phone service and broadband or bundled voice/broadband, Lifeline participants can receive a one-time discount toward purchasing an Internet-capable device. The program also offers other benefits, such as free 911 service and discounts on digital TV services. To establish eligibility for the discount, households must participate in federal programs. Additionally, consumers must have household incomes at or below 135% of the Federal Poverty Guidelines and not own a smartphone.
Participating providers must verify subscribers’ eligibility for the Lifeline program, which can be time-consuming and complicated. In addition, providers must follow strict marketing and advertising guidelines to prevent fraud and abuse in the program. Violations can result in fines and penalties for providers.
To reduce the burden of verification on subscribers, the FCC has rolled out a National Verifier to make independent eligibility determinations. However, this system has often failed to access the data sources necessary to verify applicants, creating a bottleneck that stifles enrollment.
Policymakers must ensure that Lifeline remains what it was meant to be: a vital subsidy that connects low-income Americans with the essential communications tools they need. They should avoid further imposing barriers to participation and work in tandem with agencies that administer public benefits to help eligible families sign up.
Requirements
A successful Lifeline program requires robust market participation by providers. This is essential to ensuring eligible subscribers can find affordable broadband, voice, and mobile phone plans. To participate, providers must meet specific requirements, such as being certified by the federal Universal Service Fund administrator (USAC), complying with minimum service standards, implementing third-party verification of customers’ eligibility, and following strict marketing and advertising guidelines.
Providers must also abide by state and federal rules regarding sales practices, such as not offering discounts to anyone other than the subscriber named on the application. Additionally, providers cannot discriminate against subscribers based on race, ethnicity, religion, age or gender.
The Lifeline program ensures that low-income households can access modern communications services. It has already undertaken extensive reform procedures to address persistent fraud accusations and update its subsidies to reflect new technological advancements. In addition to these early reforms, the FCC has made the program more “broadband friendly,” improved customer verification, and encouraged new providers to offer Lifeline service.
As of 2018, more than 200 wireless and broadband providers offer Lifeline services.
Participating Providers
For many low-income Americans, Lifeline is the only way to afford telephone service and a cell phone. The program offers a bill credit and waives the federal subscriber line charge for landline customers. It also provides free minutes of voice, text, and data for wireless users.
Since its inception in 1985, the Lifeline program has assisted millions of people in maintaining ties to their towns and families. In recent years, the program has been subject to several reforms that have increased its efficiency and effectiveness.
One key aspect of these reforms was the establishment of minimum service standards for the program. The FCC set these standards to ensure beneficiaries can access services that meet modern communications needs. However, the standards also must be flexible enough to encourage providers to participate in the program.
