FCC votes in favor of allowing Lifeline low-income subsidies for Internet plans
The Federal Communications Commission on Thursday voted 3 to 2 in favor of extending the U.S. government's Lifeline program to offer subsidies for broadband Internet, and not just basic phone service.
The vote was split along party lines, with Democrats in favor, Bloomberg reported. In a statement, the FCC noted that poorer Americans are often dependent on phones for Internet access, and not being able to cover a data plan creates a disadvantage when trying to use services like banking and healthcare.
The changes were proposed by FCC chairman Tom Wheeler, who is also working to address concerns about fraud. One Republican commissioner, Ajit Pai, complained that "waste, fraud and abuse are still rampant" in Lifeline. In 2014, three people were indicted for defrauding Lifeline of $32 million between September 2009 and March 2011.
A variety of anti-fraud measures have been enacted since 2012, including crosschecks to stop households from claiming more than one subsidy. Some reform measures have yet to be implemented, but Wheeler's proposal will likely bring further rules into effect.
One party backing the extension of Lifeline is the CTIA, a cellular industry association whose members -- such as AT&T and Verizon -- benefit financially from the program. In 2013, for instance, $430.3 million went to TracFone parent company America Movil. $320 milion went to Sprint, and $153.3 million went to AT&T. Verizon ranked ninth, with $59 million.
That year Lifeline users dropped from 17.2 million to 14.5 million, however. Between 2012 and 2014, total government spending on Lifeline fell from $2.2 billion to $1.6 billion.
Lifeline recipients receive very little money for phone service, currently just $9.25 a month. The FCC could have to raise that amount to meaningfully help with data plans.
The vote was split along party lines, with Democrats in favor, Bloomberg reported. In a statement, the FCC noted that poorer Americans are often dependent on phones for Internet access, and not being able to cover a data plan creates a disadvantage when trying to use services like banking and healthcare.
The changes were proposed by FCC chairman Tom Wheeler, who is also working to address concerns about fraud. One Republican commissioner, Ajit Pai, complained that "waste, fraud and abuse are still rampant" in Lifeline. In 2014, three people were indicted for defrauding Lifeline of $32 million between September 2009 and March 2011.
A variety of anti-fraud measures have been enacted since 2012, including crosschecks to stop households from claiming more than one subsidy. Some reform measures have yet to be implemented, but Wheeler's proposal will likely bring further rules into effect.
One party backing the extension of Lifeline is the CTIA, a cellular industry association whose members -- such as AT&T and Verizon -- benefit financially from the program. In 2013, for instance, $430.3 million went to TracFone parent company America Movil. $320 milion went to Sprint, and $153.3 million went to AT&T. Verizon ranked ninth, with $59 million.
That year Lifeline users dropped from 17.2 million to 14.5 million, however. Between 2012 and 2014, total government spending on Lifeline fell from $2.2 billion to $1.6 billion.
Lifeline recipients receive very little money for phone service, currently just $9.25 a month. The FCC could have to raise that amount to meaningfully help with data plans.
Comments
I am against this. Broadband internet is not a human right.
So kind of them. It would have been worse but AZ taxes dropped at the same time.
My cell phone bill went up last month. Why? Tripling of federal taxes.
Remember, the Universal Service Fund is not a tax. It's a mandatory percentage assessment on carrier gross revenues. But it's not a tax. So read their lips, no new taxes.
Perhaps CJ Roberts can tell us it's a tax.
Communication changes through history. Lifelines must change too. Hope you never need one.
All the people who think there should be no help for anyone in need... I bet they'd take the help when THEY need it.
My grandmother couldn't even get onto the new health system w/o internet. So, yeah, saw this coming..
That said, this shouldn't be blazing speed internet.. only the most basic to get access to necessary services and browsing/email.. Want more, get some income and pay for it yourselves.
or does everyone need to be able to watch youtube videos in HD in their home?
Some subscribers may notice a “Universal Service” line item on their telephone bills. This line item appears when a company chooses to recover its USF contributions directly from its customers by billing them this charge. The FCC does not require this charge to be passed on to customers. Each company makes a business decision about whether and how to assess charges to recover its Universal Service costs.
Is there any company that does not pass on this "Universal Service" charge to their customers?
This program has been around for a long time, but it's exploded under Obama and has gotten out of control, with massive fraud and people cheating the system. Just say no to Obamaphones and also no to any Obamabroadband! I don't care about poor people or fraudsters! There's too many of them now.
Pai said the Lifeline program grew by nearly 102 percent since January 2009, compared to the program’s 3 percent growth during former President George W. Bush’s administration.
http://watchdog.org/161910/obama-phone-fraud/
All the people who think there should be no help for anyone in need... I bet they'd take the help when THEY need it.
I see the shopping carts of fat people with children in tow who pay with their items using foodstamps, and their carts are filled with items like ice cream, potato chips, sodas. These people are not in need, and if they need a phone or the internet, then they can easily scrape together the money if it was important to them. Let them go without buying a $200 pair of sneakers, I'm sure that they can make that sacrifice.
This program has been around for a long time, but it's exploded under Obama and has gotten out of control, with massive fraud and people cheating the system. Just say no to Obamaphones and also no to any Obamabroadband! I don't care about poor people or fraudsters! There's too many of them now.
Pai said the Lifeline program grew by nearly 102 percent since January 2009, compared to the program’s 3 percent growth during former President George W. Bush’s administration.
http://watchdog.org/161910/obama-phone-fraud/
You totally lose your crediblity. There is no such a thing as Obamaphone. It's a political motivated term.
The sudden increase is simply due to the fact that more jobs and more places demand you have it.
http://www.factcheck.org/2009/10/the-obama-phone/
You totally lose your crediblity. There is no such a thing as Obamaphone. It's a political motivated term.
The sudden increase is simply due to the fact that more jobs and more places demand you have it.
http://www.factcheck.org/2009/10/the-obama-phone/
It was coined by an Obama voter! That is the origin of the phrase.
Imagine if they lowered library taxes to cover the cost of this. Hah.
I'm going to petition my library to halve the size of their computer area.
I see the shopping carts of fat people with children in tow who pay with their items using foodstamps, and their carts are filled with items like ice cream, potato chips, sodas. These people are not in need, and if they need a phone or the internet, then they can easily scrape together the money if it was important to them. Let them go without buying a $200 pair of sneakers, I'm sure that they can make that sacrifice.
Strangest thing. Last time I was at Wal-mart everyone walking around the store or checking out had a $200 pair of sneakers in their basket. Weird.
And here's the bright and very articulate woman and typical Obama voter who can claim credit for coining the term "Obamaphone".
Original Obamaphone Lady: Obama Voter Says Vote for Obama because he gives a free Phone
Imagine if they lowered library taxes to cover the cost of this. Hah.
I'm going to petition my library to halve the size of their computer area.
Library taxes are local taxes not federal. I am sure it was fun to say it anyway.
And here's the bright and very articulate woman and typical Obama voter who can claim credit for coining the term "Obamaphone".
Original Obamaphone Lady: Obama Voter Says Vote for Obama because he gives a free Phone
Here we are three years later keeping the term alive because some woman in Cleveland said it. Wow, are we pathetic or what?