On February 6, 2012, the FCC released an Order making significant changes to its Lifeline program.  The FCC’s Lifeline program helps subsidize voice telephone service for low-income Americans.  

The Order reforms the amount and structure of the reimbursement eligible telecommunications providers (“ETCs”) receive from the Universal Service Administrative Company.  New rules include significant changes to the subscriber eligibility verification requirements, as well as the administrative mechanisms that ETCs must use to verify subscriber eligibility.  In addition, the reforms create new ETC certification requirements and alter the forms ETCs must use, and create a new federal database into which all ETCs will need to input data about current subscribers, as well as search to confirm subscriber eligibility.  

In short, the reforms significantly change the way the Lifeline program is run and could cause confusion over the near term for ETCs that are not abreast of these changes. 

The FCC published the new Lifeline rules in the Federal Register on March 2, 2012, and announced that the portions of the rules that do not have an information collection component will become effective either April 1 or April 2, 2012 depending upon the specific rule.  Certain Lifeline rules relating to assistance in Tribal areas go into effect on June 1, 2012.  

For rules that include an information collection component, the effective date is dependent on Office of Management and Budget approval.  This includes rules covering (i) ETC certification requirements; (ii) lifeline support amounts; (iii) reimbursement procedures; (iv) subscriber eligibility determinations and certifications; and (v) ETC annual certifications.  

More information about the FCC’s Lifeline reforms is available here:   http://www.fcc.gov/guides/lifeline-and-link-affordable-telephone-service-income-eligible-consumers. 

If you have any questions about the new Lifeline rules, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm-chi.com.