FCC chief seeks to boost low-income access to Internet

If Federal Communications Commission Chairman Tom Wheeler sways his colleagues, low-income Americans will soon get a "lifeline" to high-speed Internet access, in the form of a monthly subsidy to pay for it.

First established in 1985, the Lifeline program now provides a monthly discount of $9.25 to help needy people pay for one landline or wireless phone per household. Under Wheeler's proposal, eligible consumers would choose to accept the subsidy for either phone or high-speed Internet service.

The costs are covered by the universal service fee that consumers pay on telephone bills from landline telephone companies, wireless telephone companies, and certain Internet phone providers.

Wheeler said he wanted to "reboot Lifeline for the Internet age" to make "Lifeline more efficient and impactful by establishing minimum standards of service for voice and broadband, so both beneficiaries and those who pay into the fund can know that they are getting the best value."

The FCC chief also said he wanted "an overhaul of the way we determine eligibility for Lifeline" to the "low-income consumers most in need of the support," to eliminate the gap in opportunity between the Internet "broadband 'haves' and 'have nots.' "

While more than 95 percent of households with incomes over $150,000 have broadband or high-speed Internet service, only 48 percent of those making less than $25,000 have the service at home, Wheeler said.

About 12 million households participated last year in the FCC's Lifeline program, which began 30 years ago to ensure that all Americans had access to basic telecommunications services.

Even if the $9.25 monthly Lifeline subsidy were not expanded to include broadband Internet, that amount could virtually pay for the $9.95 Internet Essentials service Comcast offers to qualified low-income families with children in school.

Wheeler's proposal was commended by one consumer advocacy group that supports freedom of expression and access to affordable communications tools.

"People increasingly depend on the Internet for access to jobs, education, news, services, communications, and everything else under the sun," said Kristine DeBry, vice president of policy strategy at Public Knowledge.

"In times of emergency, we depend on broadband to provide life-saving information and to keep us in touch with our loved ones," she said. "We no longer need to debate if broadband is essential to the lives and well-being of all Americans, for it has become obvious from the experience of our daily lives."

If Wheeler's proposal is approved by FCC commissioners at their June 18 meeting, the agency would seek public comment on establishing minimum standards for broadband and phone service.

Republicans have criticized the Lifeline program, dubbing it "Obamaphone" because of rapid growth in its costs in recent years under the Obama administration as it has expanded to also cover wireless phones.

The program's costs increased from about $809 million in 2005, when subsidies were allowed for wireless phones, to about $1.7 billion last year.

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