Bbtf broadband lifeline presentation

Bbtf broadband lifeline presentation

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  California | Illinois| Michigan | Minnesota | Texas | Washington, D.C. www.dykema.com Exceptional service. Dykema delivers. Federal Lifeline Reform: Broadband Governor’s Task Force on Broadband
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  Exceptional service. Dykemadelivers.2 “Internet access has become a pre-requisite for full participation in our economy and our society, but nearly one in five Americans is still not benefitting from the opportunities made possible by the most powerful and pervasive platform in history.” Blog Entry from Chairman Wheeler and Commissioner Clyburn
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  Exceptional service. Dykemadelivers.3 What is Lifeline? • FCC’s program to help low-income consumers afford telecommunications services. • Consumers receive a discount on monthly telephone (wireline or wireless) of $9.25 per month. – Consumers on Tribal land are given an additional discount of $25, for a total of $34.25. – Discount reflected on bill and paid directly to carrier by USAC. • Consumers who receive certain government assistance (e.g. Medicaid, SNAP) or are within 135% of the federal poverty line are eligible for Lifeline.
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  Exceptional service. Dykemadelivers.4 Who can provide Lifeline service? • Lifeline funds are administered by the Universal Service Administrative Company (“USAC”). • To receive Lifeline funds from USAC, a company must be designated as an Eligible Telecommunications Carrier (“ETC”). • Designation as an ETC is obtained from either the State Regulatory Commission (e.g. the Minnesota Public Utility Commission) or in very limited circumstances directly from the FCC. • ETCs must provide service to all customers within their service area who reasonably request service.
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  Exceptional service. Dykemadelivers.5 Lifeline Broadband Order • The FCC released the Lifeline Broadband Order on April 27, 2016. • The Lifeline Broadband Order is designed to modernize the Lifeline program by transitioning from telephone service towards broadband service. • Under the new Lifeline program, broadband internet access service (“BIAS”) will be eligible for the Lifeline discount. – This expansion becomes effective the earlier of December 1, 2016 or after final federal Paperwork Reduction Act approval.
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  Exceptional service. Dykemadelivers.6 Lifeline Broadband Order, cont. • There will be minimum service standards for broadband and mobile voice. • The support for Lifeline voice service will be phased out from December 1, 2019 to December 1, 2021. • The FCC created a streamlined process for Lifeline Broadband Providers (“LBP”) to receive their ETC designation directly form the FCC. – 12 Attorneys General appealed this part of the Order to the DC Circuit, arguing this piece exceeded the FCC’s jurisdiction or authority.
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  Exceptional service. Dykemadelivers.7 Implications for Affordability • Reduces broadband cost to low income consumers. • Intended to narrow the “homework gap.” • More carriers potentially eligible to participate in the Lifeline Program (e.g. PCs for People). • Goal is to expand program from the 13 million Americans who receive a voice discount to approximately 18.5 million Americans. • Program intended to support mobile devices with Wi-Fi hotspot capability (school issued devices).
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  Exceptional service. Dykemadelivers.8 Potential Concerns • Program does not help low income consumers where there is no broadband available. • Eligible consumers must choose whether to apply the discount to wireline telephone, wireless telephone or broadband or a bundled voice/data service. • Discount does not address the expense of hardware. • The Universal Service Fund fee is already high at 17.9% and adding additional services is likely to drive it upwards. – If USF added to broadband bills it could make broadband more expensive for those who don’t qualify for the discount. • It isn’t enough to make a meaningful difference in the cost of broadband. (national average cost: $33.12)
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  Exceptional service. Dykemadelivers.9 Contact Information Shannon M. Heim [email protected] 612-486-1586 (office) 763-639-7138 (cell)