Internet subsidy for the poor?

  • Associated Press
  • Thursday, May 28, 2015 5:49pm
  • Business

NEW YORK — The head of the Federal Communications Commission is proposing that the government agency expand a phone subsidy program for the poor to include Internet access.

The FCC Chairman Tom Wheeler, has emphasized that Internet access is a critical component of modern life, key education, communication and finding a keeping a job.

With the net neutrality rules released earlier this year, the agency redefined broadband as a public utility, like the telephone, giving it stricter oversight on how online content gets to consumers. That triggered lawsuits from Internet service providers.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The proposal Thursday to expand the Lifeline phone program to Internet service aims to narrow the “digital divide” — those with access to the Internet and other modern technologies and those without.

According to a Pew Research Center report from 2013, 70 percent of U.S. adults have a high-speed Internet connection at home. Only 54 percent of households earnings less than $30,000 a year do. The FCC says low-income Americans are more likely to rely on smartphones for Internet access. According to the Pew report, 67 percent of households that make less than $30,000 a year have home broadband or a smartphone.

Lifeline was started in 1985 and expanded to include wireless phones in 2005. The FCC’s proposal calls for extending Lifeline’s $9.25 monthly credit to give low-income households a choice of phone service or Internet access, via a wire to the home or a smartphone.

“Voice is no longer sufficient to be able to participate in society today,” said Harold Feld of Public Knowledge, a consumer advocacy group. “The broad assumption is that you’ve got broadband access somehow.”

But Lifeline has been criticized for being susceptible to fraud, and the proposal may get pushback from Republicans. The FCC’s proposal says it will build on anti-fraud measures that were put in place in 2012, such as extending the period that providers must keep documents on customers’ eligibility for the programs.

Senator David Vitter, R-La., said Thursday that the FCC has “failed to manage Lifeline efficiently in its current form, and I cannot support any expansion of a program that has so few safeguards in place to protect the legitimacy of the program and the American taxpayers who pay into it.”

FCC commissioners will vote in June on whether to proceed with expanding Lifeline to broadband service.

In 2014, Lifeline served 12 million households and cost $1.7 billion, paid for by surcharges on the country’s telephone customer bills.

Eligibility depends on income being at or less than 135 percent of the federal government’s poverty line, or participation in programs including Medicaid, food stamps or free school lunch.

As Internet access is often more expensive than $9.25 a month, program participants may have to pay an additional amount for service.

Some broadband providers already offer low-cost Internet to households that get food stamps or are in the school lunch program. But Comcast’s $10-a-month Internet Essentials program, for example, has been criticized as having too-slow speeds of up to 5 megabits per second and for too few people being eligible.

The FCC defines broadband as having download speeds of 25 megabits per second and higher.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

FILE — Jet fuselages at Boeing’s fabrication site in Everett, Wash., Sept. 28, 2022. Some recently manufactured Boeing and Airbus jets have components made from titanium that was sold using fake documentation verifying the material’s authenticity, according to a supplier for the plane makers. (Jovelle Tamayo/The New York Times)
Boeing adding new space in Everett despite worker reduction

Boeing is expanding the amount of space it occupies in… Continue reading

Paul Roberts makes a speech after winning the Chair’s Legacy Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Paul Roberts: An advocate for environmental causes

Roberts is the winner of the newly established Chair’s Legacy Award from Economic Alliance Snohomish County.

Laaysa Chintamani speaks after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Laasya Chintamani: ‘I always loved science and wanted to help people’

Chintamani is the recipient of the Washington STEM Rising Star Award.

Dave Somers makes a speech after winning the Henry M. Jackson Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
County Executive Dave Somers: ‘It’s working together’

Somers is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mel Sheldon makes a speech after winning the Elson S. Floyd Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Mel Sheldon: Coming up big for the Tulalip Tribes

Mel Sheldon is the winner of the Elson S. Floyd Award from Economic Alliance Snohomish County

Craig Skotdal makes a speech after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Craig Skotdal: Helping to breathe life into downtown Everett

Skotdal is the recipient of the John M. Fluke Sr. award from Economic Alliance Snohomish County

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

The Coastal Community Bank branch in Woodinville. (Contributed photo)
Top banks serving Snohomish County with excellence

A closer look at three financial institutions known for trust, service, and stability.

Image from Erickson Furniture website
From couch to coffee table — Local favorites await

Style your space with the county’s top picks for furniture and flair.

2025 Emerging Leader winner Samantha Love becomes emotional after receiving her award on Tuesday, April 8, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Samantha Love named 2025 Emerging Leader for Snohomish County

It was the 10th year that The Herald Business Journal highlights the best and brightest of Snohomish County.

2025 Emerging Leader Tracy Nguyen (Olivia Vanni / The Herald)
Tracy Nguyen: Giving back in her professional and personal life

The marketing director for Mountain Pacific Bank is the chair for “Girls on the Run.”

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.