FCC suggests subsidized broadband for poor, instead of telephones

At Thursday's open meeting of the Federal Communications Commission (FCC), a set of reforms to the Lifeline/Link-Up program was proposed, aiming at "modernizing and driving tougher accountability" for the program that provides discounts for telecommunications service and installation for lower-income consumers.

The existing program is part of the Universal Services Fund (USF), which is paid into by the major telecommunications companies and their subscribers. It offers discounts of up to $10 per customer for monthly bills and one half (up to $30) of installation fees for basic services. To be eligible for the program, consumers must be at, or less than 135% of, the federal poverty line (which has been set at $10,890/year per individual for 2011.)

Given the decreasing importance of wireline telephone services, the FCC is attempting to re-tool the USF so it may cater more to the "broadband gap."

"The Universal Service Fund has provided low-income households with discounts on monthly phone bills and initial installation charges since 1985. But program rules and administration have not kept pace with significant changes in technology, markets, and regulations, which have put increasing pressure on the program," a statement from the Commission said Thursday.

As we can now all see on the National Broadband Map from the National Telecommunications and Information Administration (NTIA), between 5-10% of Americans lack access to broadband services adequate to "fully participate in the Internet economy," as it was described by Assistant Secretary for Communications and Information and NTIA Administrator Lawrence E. Strickling.

The proposed changes include the creation of a "National Accountability Database" against which consumer eligibility can be verified (more information is pending about what this could actually become), expanding the discounts to include bundled Digital Voice/Broadband service plans, evaluating a cap on the program, starting pilot programs for USF-supported broadband connections, and general steps toward ensuring that the "Lifeline" plan supports the services that consumers actually use.