[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Rules and Regulations]
[Pages 12951-12980]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4978]
[[Page 12951]]
Vol. 77
Friday,
No. 42
March 2, 2012
Part III
Federal Communications Commission
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47 CFR Chapter 54
Lifeline and Link Up Reform and Modernization, Advancing Broadband
Availability Through Digital Literacy Training; Final Rule
Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules
and Regulations
[[Page 12952]]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket Nos. 11-42, 03-109, 12-23 and CC Docket No. 96-45; FCC 12-
11]
Lifeline and Link Up Reform and Modernization, Advancing
Broadband Availability Through Digital Literacy Training
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this document, the Federal Communications Commission
comprehensively reforms and begins to modernize the Universal Service
Fund's Lifeline program. The reforms adopted in this document
substantially strengthen protections against waste, fraud, and abuse;
improve program administration and accountability; improve enrollment
and consumer disclosures; initiate modernization of the program for
broadband; and constrain the growth of the program in order to reduce
the burden on all who contribute to the Universal Service Fund.
DATES: Effective April 2, 2012, except for the amendments to Sec. Sec.
54.202(a), 54.401(c), 54.403, 54.407, 54.410, 54.416, 54.417, 54.420,
54.222 which contain information collection requirements that are not
effective until approved by the Office of Management and Budget. The
Federal Communications Commission will publish a document in the
Federal Register announcing the effective date for those sections, and
except for the amendments contained herein to 47 CFR 54.411, 54.412,
54.413 and 54.414 which shall become effective April 1, 2012; and 47
CFR 54.409 which shall become effective June 1, 2012.
FOR FURTHER INFORMATION CONTACT: Kimberly Scardino, Wireline
Competition Bureau, (202) 418-7400 or TTY: (202) 418-0484.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (R&O) in WC Docket Nos. 11-42, 03-109, 12-23 and CC Docket
No. 96-45; FCC 12-11, adopted on January 31, 2012 and released on
February 6, 2012. There was also a companion document released with
this item. The full text of this document is available for public
inspection during regular business hours in the FCC Reference Center,
Room CY-A257, 445 12th Street SW., Washington, DC 20554. Or at the
following Internet address: http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0207/FCC-12-11A1.doc.
I. Introduction
1. In this Order, the Commission comprehensively reforms and begins
to modernize the Universal Service Fund's Lifeline program (Lifeline or
the program). Building on recommendations from the Federal-State Joint
Board on Universal Service (Joint Board), proposals in the National
Broadband Plan, input from the Government Accountability Office (GAO),
and comments received in response to the Commission's March Notice of
Proposed Rulemaking, the reforms adopted in this Order substantially
strengthen protections against waste, fraud, and abuse; improve program
administration and accountability; improve enrollment and consumer
disclosures; initiate modernization of the program for broadband; and
constrain the growth of the program in order to reduce the burden on
all who contribute to the Universal Service Fund (USF or the Fund). We
take these significant actions, while ensuring that eligible low-income
consumers who do not have the means to pay for telephone service can
maintain their current voice service through the Lifeline program and
those who are not currently connected to the networks will have the
opportunity to benefit from this program and the numerous opportunities
and security that telephone service affords.
2. This Order is another step in the Commission's ongoing efforts
to overhaul all USF programs to promote the availability of modern
networks and the capability of all American consumers to access and use
those networks. Consistent with previous efforts, we act here to
eliminate waste and inefficiency, increase accountability, and
transition the Fund from supporting standalone telephone service to
broadband. In June 2011, the Commission adopted the Duplicative Program
Payments Order, 76 FR 38040, June 29, 2011, which made clear that an
eligible consumer may only receive one Lifeline-supported service,
established procedures to detect and de-enroll subscribers receiving
duplicative Lifeline-supported services, and directed the Universal
Service Administrative Company (USAC) to implement a process to detect
and eliminate duplicative Lifeline support--a process now completed in
12 states and expanding to other states in the near future. Building on
those efforts, the unprecedented reforms adopted in today's Order could
save the Fund up to an estimated $2 billion over the next three years,
keeping money in the pockets of American consumers that otherwise would
have been wasted on duplicative benefits, subsidies for ineligible
consumers, or fraudulent misuse of Lifeline funds.
3. These savings will reduce growth in the Fund, while providing
telephone service to consumers who remain disconnected from the voice
networks of the twentieth century. Moreover, by using a fraction of the
savings from eliminating waste and abuse in the program to create a
broadband pilot program, we explore how Lifeline can best be used to
help low-income consumers access the networks of the twenty-first
century by closing the broadband adoption gap. This complements the
recent USF/ICC Transformation Order, 76 FR 76623, December 8, 2011,
which reoriented intercarrier compensation and the high-cost fund
toward increasing the availability of broadband networks, as well as
the recently launched ``Connect to Compete'' private-sector initiative
to increase access to affordable broadband service for low-income
consumers.
4. To make the program more accountable, the Order establishes
clear goals and measures and establishes national eligibility criteria
to allow low-income consumers to qualify for Lifeline based on either
income or participation in certain government benefit programs. The
Order adopts rules for Lifeline enrollment, including enhanced initial
and annual certification requirements, and confirms the program's one-
per-household requirement. The Order simplifies Lifeline reimbursement
and makes it more transparent. The Commission adopts a number of
reforms to eliminate waste, fraud and abuse in the program, including
creating a National Lifeline Accountability Database to prevent
multiple carriers from receiving support for the same subscribers;
phasing out toll limitation service support; eliminating Link Up
support except for recipients on Tribal lands that are served by
eligible telecommunications carriers (ETCs) that participate in both
Lifeline and the high-cost program; reducing the number of ineligible
subscribers in the program; and imposing independent audit requirements
on carriers receiving more than $5 million in annual support. These
reforms are estimated to save the Fund up to $2 billion over the next
three years. As part of these reforms we establish a savings target of
$200 million in 2012 versus the program's status quo path in the
absence of reform, create a mechanism for ensuring that target is met,
and put the Commission in a position to determine the appropriate
budget for Lifeline in early 2013 after
[[Page 12953]]
monitoring the impact of today's fundamental overhaul of the program
and addressing key issues in the Further Notice of Proposed Rulemaking
(FNPRM), including the appropriate monthly support amount for the
program. Using savings from the reforms, the Order establishes a
Broadband Adoption Pilot Program to test and determine how Lifeline can
best be used to increase broadband adoption among Lifeline-eligible
consumers. We also establish an interim base of uniform support amount
of $9.25 per month for non-Tribal subscribers to simplify program
administration.
II. Performance Goals & Measures
5. The Order adopts three performance goals for the program: (1)
Ensure the availability of voice service for low-income Americans; (2)
ensure the availability of broadband service for low-income Americans;
and (3) minimize the contribution burden on consumers and businesses.
The Order adopts measurements for each of the goals, while delegating
to the Bureau authority to resolve implementation aspects of such
measurements (for example, determining how to define ``low-income'' and
``next higher'' for the purpose of the measurement).
III. Voice Services Eligible for Discount
6. Consistent with the actions taken in the CAF Order and Sua
Sponte Order on Reconsideration, the Order amends the definition of
``Lifeline'' to provide support for ``voice telephony service.'' The
Order amends the rules to eliminate the ``basic local service
qualifier'' that is currently part of the definition of Lifeline
service, but explains that the Commission continues to expect Lifeline
providers to provide service that enables consumers to communicate with
others that live nearby, while acknowledging that service plans
increasingly allow all distance communication. The Order declines to
specify minimum service standards for Lifeline service, but states the
Commission will monitor service levels to see if it should adopt
standards in the future.
IV. Support Amounts for Voice Services
7. Today, ETCs are reimbursed for Lifeline based on a rather
complicated tiers structure that is, among other things tied to the
ILEC Subscriber Line Charge. To simplify administration of the program
and revise the rules to reflect the current marketplace in which more
than half of the support is provided to wireless providers that do not
charge a SLC, the Order adopts an interim rate of $9.25 to replace the
current Tiers 1, 2, and 3, effective April 1, 2012. The interim support
amount represents the nationwide average rate of reimbursement as of
September 2011. Tier 4, which provides enhanced Lifeline support to
residents of Tribal lands, remains unchanged. We seek further comment
on setting appropriate permanent support amounts in a Further Notice of
Proposed Rulemaking.
V. Consumer Eligibility and Enrollment
A. Uniform Eligibility Criteria
8. The Order establishes a uniform floor of eligibility for
Lifeline based on the current federal rules, while allowing states to
include more permissive eligibility criteria. Additionally, the Order
keeps the current federal income standard of 135% or below of the
federal poverty guidelines. This uniformity will simplify program
administration for USAC and for ETCs as well as provide a baseline
level of program accessibility nationwide.
B. One-per-Household
9. The order adopts a one-per-household requirement. ``Household''
is defined consistent with the Low-Income Home Energy Assistance
Program as ``any individual or group of individuals who are living
together at the same address as one economic unit,'' with an ``economic
unit'' defined as ``all adult individuals contributing to and sharing
in the income and expenses of a household.'' The Order permits Lifeline
support to individuals living in group living facilities. The Order
adopts procedures to enable Lifeline applicants to demonstrate when
initially enrolling in the program that any other Lifeline recipients
residing at their residential address are part of a separate household
and directs USAC, within 30 days of the effective date of the Order, to
develop a worksheet that will allow low-income households sharing an
address to indicate they are part of a separate household. The Order
also directs USAC, within 30 days of the effective date of the Order,
to develop print and web materials to be posted on USAC's Web site that
both USAC and ETCs can use to educate consumers about the one-per-
household rule (i.e., how to determine what persons comprise a
household).
C. Determining Consumer Eligibility (At Enrollment and Annually
Thereafter)
10. The Order requires all Lifeline subscribers to provide certain
certifications when enrolling in Lifeline and annually thereafter.
These requirements are as follows:
1. Initial Certification Requirements
11. The Order requires ETCs (or the state administrator, where
applicable) to check the program-based eligibility of new Lifeline
subscribers at enrollment by accessing available state or federal
eligibility databases. Where underlying program eligibility data cannot
be accessed, the Order requires new Lifeline subscribers to provide
documentation of program-based eligibility, which the entity enrolling
the subscriber should review (but not retain). Similarly, the Order
extends the current requirement in federal default states that new
Lifeline subscribers must present documentation to qualify for Lifeline
based on income level to all states. The Order adopts additional
certification requirements to protect the program from waste, fraud,
and abuse, including requiring consumers to certify upon enrollment and
annually thereafter that they are receiving support for only one line
per household (as described above), and requires consumers to sign a
certification form prior to enrolling in the Lifeline program.
2. Annual Re-Certification Requirements
12. The Order replaces the existing annual verification process
with a rule that requires each Lifeline subscriber (both existing
subscribers and new subscribers) to provide annual self-certifications
attesting to their continued eligibility for the program. The Order
requires all ETCs, to re-certify by the end of 2012, all of their
subscribers claimed on their June FCC Form 497 and report the results
of this annual re-certification process to the Commission, USAC and the
relevant state commission (where the state has jurisdiction over the
ETC) annually by January 31, 2013. Beginning in 2013, where ETCs cannot
re-certify their subscriber by accessing a database, they must re-
certify them on an annual basis or elect to have USAC re-certify them.
The results of the re-certification process must be filed by January
31st each year. Where ETCs can access underlying state or federal
program data to confirm a consumer's ongoing eligibility for Lifeline,
the Order allows them to do so in place of the annual re-certification
process. The Order adopts a rule that consumers that do not respond to
annual re-certifications must be de-enrolled from the program. The
Order also adopts a rule requiring consumers to notify their ETC within
30 days if the consumer no longer qualifies for Lifeline.
[[Page 12954]]
3. ETC Certifications
13. The Order requires ETCs to make certain certifications annually
and when submitting for reimbursement from the program.
D. Tribal Lifeline Eligibility
14. The Order clarifies that residents of Tribal lands are eligible
for Lifeline (and Link Up support if served by a high cost recipient)
based on (1) Income level; (2) participation in any Tribal-specific
federal assistance program identified in the Commission's rules; or (3)
participation in any other program identified in the Commission's
rules. The Order adopts the NPRM proposal to add the Food Distribution
Program on Indian Reservations (FDPIR) to the list of programs that
confer eligibility. The Order establishes a waiver and designation
process for those Tribal communities that are located outside of
reservations, but can show ties to defined Tribal communities, and
removes the term ``near reservation'' from the Commission's definition
of Tribal lands. The Order requires residents on Tribal lands to follow
the same requirements for documentation of income and program based
eligibility as other Lifeline recipients, but clarifies that we will
continue to allow self-certification of residence on Tribal lands.
E. Electronic Signature
15. The Order allows ETCs and state agencies to capture a
subscriber's signature electronically at sign-up, including through the
use of interactive voice response systems in compliance with the
requirements of the E-Sign Act and the Government Paperwork Elimination
Act. The E-Sign Act allows the use of electronic records to satisfy
Commission regulations requiring that such information be provided in
writing, if the consumer has affirmatively consented to such use and
has not withdrawn such consent.
F. Automatic and Coordinated Enrollment
16. The Order encourages states to facilitate coordinated
enrollment, but makes clear that automatic enrollment whereby consumers
receiving eligible benefits are automatically enrolled in a particular
carrier's Lifeline program without their express consent is not
permitted because it may increase the incidence of duplicative support.
VI. Reforms To Eliminate Waste, Fraud and Abuse
A. National Lifeline Accountability Database
17. The Order adopts a national duplicates database to detect and
eliminate duplicative Lifeline and Link Up support. The Order directs
WCB to work with USAC and OMD to establish and implement the database
and associated processes. ETCs will be required to query the database
to determine whether a prospective subscriber is already receiving
Lifeline support from another ETC. The order directs ETCs to (1)
populate the database with the necessary information to implement these
processes and (2) query the database for each new subscriber prior to
receiving reimbursement from the fund for that subscriber. We seek
further comment in an FNRPM on how to implement a database to check for
eligibility.
B. TLS
18. The Order clarifies that it does not consider a subscriber who
has a Lifeline calling plan that includes a set number of calling
minutes available for either local or domestic long distance calls to
have voluntarily elected to receive TLS. Therefore, TLS support will
not be provided to ETCs providing such plans effective April 1, 2012.
To the extent an ETC offers service plans that still charge a fee for
toll calls that is in addition to the per month or per billing cycle
price for the Lifeline service plan, it must provide at no additional
cost to the consumer the ability to limit or block calls that would
result in additional charge, but the program will no longer provide
additional support for this functionality. Support for TLS will be
eliminated over two years to mitigate the impact of this change. The
Order establishes a limit on TLS support of $3.00 per month per
subscriber that will be implemented with April 2012 support payments
through the remainder of 2012, beginning with April 2012 disbursements.
TLS support will be reduced to $2.00 per month per subscriber in 2013,
and eliminated at the beginning of 2014.
C. Link Up
19. The Order eliminates Link Up support to all ETCs on non-Tribal
lands, effective April 1, 2012, and limits Link Up on Tribal lands to
high cost recipients deploying infrastructure. Marketplace trends
indicate that Lifeline consumers increasingly have service options from
ETCs that neither draw on Link Up support nor charge the consumer a
service initiation fee. In balancing a number of universal service
goals with finite resources, we conclude that dollars currently spent
for Link Up can be more effectively spent to improve and modernize the
Lifeline program.
D. Subscriber Usage of Customer Supported Service
20. The Order establishes a rule that pre-paid ETCs offering
service to subscribers for free may not seek reimbursement for
subscribers until the subscriber initiates service in the first
instance. Moreover, subscribers who fail to ``use'' the service (as
that term is defined in the Order/Rules) within 60 consecutive days
must be de-enrolled by the carrier and the duplicates database must be
updated within one business day. Furthermore, pre-paid ETCs must inform
their subscribers that Lifeline services are not transferable, that
there is a usage requirement to retain the benefit, and that
subscribers will be automatically de-enrolled for non-use.
E. Minimum Consumer Charge
21. The Order does not adopt a minimum consumer charge in light of
other W/F/A protections that will be implemented to ensure that
consumers do not abuse the program, but notes that this issue could be
revisited if the measures adopted fail to address the issues that
currently exist. Further, the Order eliminates the current rule that
imposes a $1 minimum local charge on Tribal subscribers.
F. Outreach and Marketing
22. Within six months from the Order's effective date, ETCs must
include in plain, easy-to-understand language in all of their Lifeline
marketing materials (including print, internet, audio and video), that
the offering is a Lifeline-supported service; Lifeline is a government
assistance program; only eligible consumers may enroll in the program;
what documentation is necessary for enrollment; the program is limited
to one benefit per household, consisting of either wireline or wireless
service; and consumers who willfully make false statements in order to
obtain program benefits can be punished with a fine or imprisonment or
barred from the program. Additionally, the Order requires ETCs to
disclose the company name under which it does business and the details
of its Lifeline service offerings in its Lifeline-related marketing and
advertising. The Order does not adopt mandatory outreach requirements
but directs the Wireline Competition and Consumer and Governmental
Affairs Bureau to conduct
[[Page 12955]]
an outreach campaign regarding the new program rules.
G. Audits and Enforcement
23. The order requires USAC to revise its existing oversight
program (the Beneficiary Compliance Audit and Payment Quality Assurance
programs) in light of the new rules. It also adopts a new first-year
audit requirement for newly designated ETCs whereby they would be
audited by USAC within their first year of providing service. The order
also adopts a rule that ETCs drawing more than $5 million, at the
holding company level, from the low-income program must conduct
biennial independent audits and submit the audit reports to the
Commission, USAC, and appropriate state commission. The Order requires
ETCs to report to USAC their ownership information, including
affiliates and holding companies, which is necessary to implement this
new audit requirement. ETCs are put on notice that findings concerning
improper payment of funds may result in recapture of those payments
under the Improper Payments Elimination and Recovery Act (IPERA) and
related Office of Management and Budget implementation guidelines and/
or revocation of ETC designation.
VII. Payment of Low-Income Support
24. The order adopts a three-month transition for low-income
support to be disbursed based on actual support in place of the current
administrative process of paying low-income support based on projected
service. The Order accelerates USAC's payment of low-income support for
carriers filing the FCC Form 497 electronically by a monthly deadline.
The window by which carriers must file revisions or original FCC Form
497s is reduced from fifteen months from the end of a calendar year, to
a rolling twelve-month window.
VIII. Modernizing the Program
A. Bundled Services
25. The Order adopts a rule permitting ETCs in all states to allow
qualifying low-income consumers to apply Lifeline discounts to all
residential service plans that provide voice telephony service,
including bundled service packages combining voice and broadband, or
packages containing optional calling features. ETCs will be required to
apply partial subscriber payments to the cost of the Lifeline voice
component of a package before paying down any additional services, and
must notify Lifeline consumers of this rule in writing. In a Further
Notice, described below, we seek further comment on whether to adopt a
rule mandating that ETCs offer Lifeline discounts on all bundled
service packages and packages with optional calling features.
B. Broadband Pilot
26. The Order establishes a broadband pilot program aimed at
generating statistically significant data that will allow the
Commission, ETCs, and the public to analyze the effectiveness of
different approaches to using Lifeline funds to making broadband more
affordable for low-income Americans while providing support that is
sufficient but not excessive. The broadband pilot program will be
funded with some of the savings from the duplicate resolution process.
C. Managing the Size of the Low Income Fund
27. The Order sets a savings target of $200 million for 2012. The
Bureau shall provide to each Commissioner an interim report no later
than six months from the adoption of the Order analyzing the reforms'
progress in meeting the savings target. Not later than one year after
the adoption of the Order, the Bureau shall provide to each
Commissioner a report as to whether the reforms have succeeded in
meeting the savings target; and, if they have not, analyzing the
causes, providing options for realizing those savings, and making
specific recommendations for corrective action to realize those
savings. Both reports shall be made available for public input on the
Commission's Web site.
IX. Eligible Telecommunications Carrier Requirements
A. Facilities-Based Requirements for Lifeline-Only ETCs
28. The Commission forbears from applying the Act's facilities
requirement of section 214(e)(1)(A) to all telecommunications carriers
that seek limited ETC designation to participate in the Lifeline
program, subject to certain conditions. Specifically, each carrier must
(i) comply with certain 911 requirements; and (ii) file, subject to
Bureau approval, a compliance plan providing specific information
regarding the carrier's service offerings and outlining the measures
the carrier will take to implement the obligations contained in this
Order. To avoid disruption to subscribers served by existing Lifeline-
only ETCs that previously received forbearance in those states where
they were designated prior to December 29, 2011, those ETCs can
continue to receive reimbursement in those states pending approval of
their compliance plan, provided they submit their plan to the Bureau by
July 1, 2012. Non-facilities-based carriers designated after December
29, 2011 will not receive reimbursement from the Fund until the Bureau
approves their compliance plans.
B. Impact of New Rules on Prior Forbearance Conditions
29. To the extent that any of the conditions in the prior
forbearance orders and compliance plans are inconsistent with the rules
adopted in the Order, the newly adopted rules shall prevail. However,
any carrier whose grant of forbearance was conditioned on more
stringent compliance plans must comply with those additional
obligations as well as the rules adopted in the Order.
C. Additional Rule Amendments
30. The Order makes several changes to the rules regarding Lifeline
providers to eliminate waste and inefficiency, and to increase
accountability in the program. The Order amends section 54.202 to
clarify that Lifeline-only ETCs are not required to submit a five-year
improvement plan as part of its application for designation. Carriers
seeking to be designated as a Lifeline-only ETC must demonstrate their
technical and financial capacity to provide the supported services. All
ETCs receiving Lifeline must annually report the names and identifiers
used by the ETC, its holding company, operating companies and
affiliates. Additonally, the Order requires every ETC receiving low-
income support to annually provide to the Commission and USAC general
information regarding their Lifeline plans for voice telephony service
offered specifically for low-income consumers.
X. APCC Petition
31. The Order denies a petition for rulemaking and a petition for
interim relief by the American Public Communications Council to
subsidize the payphone industry through Lifeline.
XI. Procedural Matters
A. Paperwork Reduction Act Analysis
32. This Report and Order contains new information collection
requirements subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. The new requirements will be submitted to the Office
of Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies are invited to
comment on the new or modified
[[Page 12956]]
information collection requirements contained in this proceeding. In
addition, we note that pursuant to the Small Business Paperwork Relief
Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we
previously sought specific comment on how the Commission might further
reduce the information collection burden for small business concerns
with fewer than 25 employees. We describe the impacts that might affect
small businesses, which include most businesses with fewer than 25
employees, in the Final Rregulatory Flexibility Analysis below.
B. Congressional Review Act
33. The Commission will send a copy of this Report and Order to
Congress and the Government Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
C. Final Regulatory Flexibility Analysis
34. The Regulatory Flexibility Act (RFA) requires that an agency
prepare a regulatory flexibility analysis for notice and comment
rulemakings, unless the agency certifies that ``the rule will not, if
promulgated, have a significant economic impact on a substantial number
of small entities.'' Accordingly, we have prepared a Final Regulatory
Flexibility Analysis concerning the possible impact of the rule changes
contained in this Report and Order on small entities.
35. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the Lifeline and Link Up Reform and Modernization
Notice of Proposed Rulemaking (Lifeline and Link Up NPRM), 76 FR 16482,
March 23, 2011. The Commission sought written public comments on the
proposals in the Lifeline and Link Up NPRM, including comment on the
IRFA. This present Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA.
D. Need for, and Objectives of, the Order
36. The Commission is required by section 254 of the Act to
promulgate rules to implement the universal service provisions of
section 254. On May 8, 1997, the Commission adopted rules that reformed
its system of universal service support mechanisms so that universal
service is preserved and advanced as markets move toward competition.
Among other programs, the Commission adopted a program to provide
discounts that make basic, local telephone service affordable for low-
income consumers.
37. In this Order, we comprehensively reform and begin to modernize
the Universal Service Fund's Lifeline program (Lifeline or the
program). Building on recommendations from the Federal-State Joint
Board on Universal Service (``Joint Board''), proposals in the National
Broadband Plan, input from the Government Accountability Office (GAO),
and comments received in response to the Commission's March Notice of
Proposed Rulemaking the reforms adopted in this Order substantially
strengthen protections against waste, fraud, and abuse; improve program
administration and accountability; improve enrollment and consumer
disclosures; initiate modernization of the program for broadband; and
constrain the growth of the program in order to reduce the burden on
all who contribute to the Universal Service Fund (USF or the Fund). We
take these significant actions, while ensuring that eligible low-income
consumers who do not have the means to pay for telephone service can
maintain their current voice service through the Lifeline program and
those who are not currently connected to the networks will have the
opportunity to benefit from this program and the numerous opportunities
and security that telephone service affords.
38. This Order is another step in the Commission's ongoing efforts
to overhaul all Universal Service Fund programs to fulfill the goals
Congress gave us to promote the availability of modern networks and the
capability of all American consumers to access and use those networks.
Consistent with previous efforts, we act here to eliminate waste and
inefficiency, increase accountability, and transition the Fund from
supporting standalone telephone service to broadband. In June 2011, the
Commission adopted the Duplicative Program Payments Order, which made
clear that an eligible consumer may only receive one Lifeline-supported
service, established procedures to detect and de-enroll subscribers
receiving duplicative Lifeline-supported services, and directed USAC to
implement a process to detect and eliminate duplicative Lifeline
support--a process now completed in 12 states and expanding to other
states in the near future. Building on those efforts, we estimate that
the unprecedented reforms adopted in today's Order could save the Fund
up to an estimated $2 billion over the next three years, keeping money
in the pockets of American consumers that otherwise would have been
wasted on duplicative benefits, subsidies for ineligible consumers, or
fraudulent misuse of Lifeline funds.
39. These savings will reduce growth in the Fund but at the same
time provide telephone service to consumers who remain disconnected
from the voice networks of the Twentieth Century. Moreover, by using a
fraction of the savings from eliminating waste and abuse in the program
to create a broadband pilot program, we explore how Lifeline can best
be used to help low-income consumers access the networks of the Twenty-
First Century by closing the broadband adoption gap. This complements
the recent USF/ICC Transformation Order and FNPRM, which reoriented
intercarrier compensation and the high-cost fund toward increasing the
availability of broadband networks, as well as the recently launched
``Connect to Compete'' private-sector initiative to increase access to
affordable broadband service for low-income consumers.
40. To make the program more accountable, the Order establishes
clear goals and measures and establishes national eligibility criteria
to allow low-income consumers to qualify for Lifeline based on either
income or participation in certain government benefit programs. The
Order adopts rules for Lifeline enrollment, including enhanced initial
and annual certification requirements, and confirms the program's one-
per-household requirement. The Order simplifies Lifeline reimbursement
and makes it more transparent. The Commission adopts a number of
reforms to eliminate waste, fraud and abuse in the program, including
creating a National Lifeline Accountability Database to prevent
multiple carriers from receiving support for the same subscribers;
phasing out toll limitation service support; eliminating Link Up
support except for recipients on Tribal lands that are served by
eligible telecommunications carriers (``ETCs'') that participate in
both Lifeline and the high-cost program; reducing the number of
ineligible subscribers in the program; and imposing independent audit
requirements on carriers receiving more than $5 million in annual
support. These reforms are expected to save the Fund approximately $2
billion over the next three years. Using savings from the reforms, the
Order establishes a Broadband Adoption Pilot Program to test and
determine how Lifeline can best be used to increase broadband adoption
among Lifeline-eligible consumers. We also establish an interim base of
uniform support amount of $9.25 per month for non-Tribal subscribers to
simplify program administration.
[[Page 12957]]
E. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
41. No comments were filed in response to the IRFA attached to the
Lifeline and Link Up NPRM. Notwithstanding the foregoing, general
comments discussing the impact of the proposed rules on small business
were submitted in response to the Lifeline and Link Up NPRM. With
respect to the proposal to provide household identifying information as
a measure to prevent duplicate enrollment, one commenter expressed
concern that the imposition of a data transmission requirement would
result in new training, programming, and administrative expenses which
would be burdensome on small entities. One commenter opposed any
limitations placed on Link Up support arguing that such limitations
would inhibit small ETCs' ability to participate in the low income
program. Commenters expressed concern that the proposed audit
requirements in the NPRM would be expensive and difficult for small
companies to comply with. One commenter opposed the proposed
verification proposals in the NPRM asserting that such new requirements
would be unnecessarily expensive and disproportionately burden small
businesses. Commenters opposed the proposed sampling methodology to
confirm eligibility as it would have the result of requiring small
entities to sample most if not all of their Lifeline subscribers.
Commenters asserted that outreach efforts may be unreasonably
burdensome for small ETCs. In making the determinations reflected in
the Order, we have considered the impact of our actions on small
entities.
F. Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply
42. The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one that: (1) Is independently owned
and operated; (2) is not dominant in its field of operation; and (3)
satisfies any additional criteria established by the Small Business
Administration (SBA). Nationwide, there are a total of approximately
29.6 million small businesses, according to the SBA. A ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
Nationwide, as of 2002, there were approximately 1.6 million small
organizations. The term ``small governmental jurisdiction'' is defined
generally as ``governments of cities, towns, townships, villages,
school districts, or special districts, with a population of less than
fifty thousand.'' Census Bureau data for 2002 indicate that there were
87,525 local governmental jurisdictions in the United States. We
estimate that, of this total, 84,377 entities were ``small governmental
jurisdictions.'' Thus, we estimate that most governmental jurisdictions
are small.
1. Wireline Providers
43. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the
Commission nor the SBA has developed a small business size standard
specifically for incumbent local exchange services. The appropriate
size standard under SBA rules is for the category Wired
Telecommunications Carriers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. Census Bureau data for
2007, which now supersede data from the 2002 Census, show that there
were 3,188 firms in this category that operated for the entire year. Of
this total, 3,144 had employment of 999 or fewer and 44 firms had had
employment of 1000 or more. According to Commission data, 1,307
carriers reported that they were incumbent local exchange service
providers. Of these 1,307 carriers, an estimated 1,006 have 1,500 or
fewer employees and 301 have more than 1,500 employees. Consequently,
the Commission estimates that most providers of local exchange service
are small entities that may be affected by the rules and policies
proposed in the Notice. Thus under this category and the associated
small business size standard, the majority of these incumbent local
exchange service providers can be considered small providers.
44. Competitive Local Exchange Carriers (Competitive LECs),
Competitive Access Providers (CAPs), Shared-Tenant Service Providers,
and Other Local Service Providers. Neither the Commission nor the SBA
has developed a small business size standard specifically for these
service providers. The appropriate size standard under SBA rules is for
the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
Census Bureau data for 2007, which now supersede data from the 2002
Census, show that there were 3,188 firms in this category that operated
for the entire year. Of this total, 3,144 had employment of 999 or
fewer and 44 firms had had employment of 1,000 employees or more. Thus
under this category and the associated small business size standard,
the majority of these Competitive LECs, CAPs, Shared-Tenant Service
Providers, and Other Local Service Providers can be considered small
entities. According to Commission data, 1,442 carriers reported that
they were engaged in the provision of either competitive local exchange
services or competitive access provider services. Of these 1,442
carriers, an estimated 1,256 have 1,500 or fewer employees and 186 have
more than 1,500 employees. In addition, 17 carriers have reported that
they are Shared-Tenant Service Providers, and all 17 are estimated to
have 1,500 or fewer employees. In addition, 72 carriers have reported
that they are Other Local Service Providers. Seventy of which have
1,500 or fewer employees and two have more than 1,500 employees.
Consequently, the Commission estimates that most providers of
competitive local exchange service, competitive access providers,
Shared-Tenant Service Providers, and Other Local Service Providers are
small entities that may be affected by rules adopted pursuant to the
Notice.
45. Interexchange Carriers. Neither the Commission nor the SBA has
developed a small business size standard specifically for providers of
interexchange services. The appropriate size standard under SBA rules
is for the category Wired Telecommunications Carriers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
Census Bureau data for 2007, which now supersede data from the 2002
Census, show that there were 3,188 firms in this category that operated
for the entire year. Of this total, 3,144 had employment of 999 or
fewer, and 44 firms had had employment of 1,000 employees or more. Thus
under this category and the associated small business size standard,
the majority of these Interexchange carriers can be considered small
entities. According to Commission data, 359 companies reported that
their primary telecommunications service activity was the provision of
interexchange services. Of these 359 companies, an estimated 317 have
1,500 or fewer employees and 42 have more
[[Page 12958]]
than 1,500 employees. Consequently, the Commission estimates that the
majority of interexchange service providers are small entities that may
be affected by rules adopted pursuant to the Notice.
46. Operator Service Providers (OSPs). Neither the Commission nor
the SBA has developed a small business size standard specifically for
operator service providers. The appropriate size standard under SBA
rules is the category Wired Telecommunications Carriers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. Under that size standard, such a business is small if it has
1,500 or fewer employees. Census Bureau data for 2007, which now
supersede 2002 Census data, show that there were 3,188 firms in this
category that operated for the entire year. Of the total, 3,144 had
employment of 999 or fewer, and 44 firms had had employment of 1,000
employees or more. Thus under this category and the associated small
business size standard, the majority of these interexchange carriers
can be considered small entities. According to Commission data, 33
carriers have reported that they are engaged in the provision of
operator services. Of these, an estimated 31 have 1,500 or fewer
employees and 2 have more than 1,500 employees. Consequently, the
Commission estimates that the majority of OSPs are small entities that
may be affected by our proposed action.
47. Local Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. Census data for 2007 show that 1,523 firms provided resale
services during that year. Of that number, 1,522 operated with fewer
than 1000 employees and one operated with more than 1,000. Thus under
this category and the associated small business size standard, the
majority of these local resellers can be considered small entities.
According to Commission data, 213 carriers have reported that they are
engaged in the provision of local resale services. Of these, an
estimated 211 have 1,500 or fewer employees and two have more than
1,500 employees. Consequently, the Commission estimates that the
majority of local resellers are small entities that may be affected by
rules adopted pursuant to the Notice.
48. Toll Resellers. The SBA has developed a small business size
standard for the category of Telecommunications Resellers. Under that
size standard, such a business is small if it has 1,500 or fewer
employees. Census data for 2007 show that 1,523 firms provided resale
services during that year. Of that number, 1,522 operated with fewer
than 1000 employees and one operated with more than 1,000. Thus under
this category and the associated small business size standard, the
majority of these resellers can be considered small entities. According
to Commission data, 881 carriers have reported that they are engaged in
the provision of toll resale services. Of these, an estimated 857 have
1,500 or fewer employees and 24 have more than 1,500 employees.
Consequently, the Commission estimates that the majority of toll
resellers are small entities that may be affected by our action.
49. Pre-paid Calling Card Providers. Neither the Commission nor the
SBA has developed a small business size standard specifically for pre-
paid calling card providers. The appropriate size standard under SBA
rules is for the category Telecommunications Resellers. Under that size
standard, such a business is small if it has 1,500 or fewer employees.
Census data for 2007 show that 1,523 firms provided resale services
during that year. Of that number, 1,522 operated with fewer than 1000
employees and one operated with more than 1,000. Thus under this
category and the associated small business size standard, the majority
of these pre-paid calling card providers can be considered small
entities. According to Commission data, 193 carriers have reported that
they are engaged in the provision of pre-paid calling cards. Of these,
an estimated all 193 have 1,500 or fewer employees and none have more
than 1,500 employees. Consequently, the Commission estimates that the
majority of pre-paid calling card providers are small entities that may
be affected by rules adopted pursuant to the Notice.
50. 800 and 800-Like Service Subscribers. Neither the Commission
nor the SBA has developed a small business size standard specifically
for 800 and 800-like service (``toll free'') subscribers. The
appropriate size standard under SBA rules is for the category
Telecommunications Resellers. Under that size standard, such a business
is small if it has 1,500 or fewer employees. Census data for 2007 show
that 1,523 firms provided resale services during that year. Of that
number, 1,522 operated with fewer than 1,000 employees and one operated
with more than 1,000. Thus under this category and the associated small
business size standard, the majority of resellers in this
classification can be considered small entities. To focus specifically
on the number of subscribers than on those firms which make
subscription service available, the most reliable source of information
regarding the number of these service subscribers appears to be data
the Commission collects on the 800, 888, 877, and 866 numbers in use.
According to our data, as of September 2009, the number of 800 numbers
assigned was 7,860,000; the number of 888 numbers assigned was
5,888,687; the number of 877 numbers assigned was 4,721,866; and the
number of 866 numbers assigned was 7,867,736. The Commission does not
have data specifying the number of these subscribers that are not
independently owned and operated or have more than 1,500 employees, and
thus are unable at this time to estimate with greater precision the
number of toll free subscribers that would qualify as small businesses
under the SBA size standard. Consequently, the Commission estimates
that there are 7,860,000 or fewer small entity 800 subscribers;
5,888,687 or fewer small entity 888 subscribers; 4,721,866 or fewer
small entity 877 subscribers; and 7,867,736 or fewer small entity 866
subscribers. We do not believe 800 and 800-Like Service Subscribers
will be effected by our proposed rules, however we choose to include
this category and seek comment on whether there will be an effect on
small entities within this category.
2. Wireless Carriers and Service Providers
51. Below, for those services subject to auctions, the Commission
notes that, as a general matter, the number of winning bidders that
qualify as small businesses at the close of an auction does not
necessarily represent the number of small businesses currently in
service. Also, the Commission does not generally track subsequent
business size unless, in the context of assignments or transfers,
unjust enrichment issues are implicated.
52. Wireless Telecommunications Carriers (except Satellite). Since
2007, the Census Bureau has placed wireless firms within this new,
broad, economic census category. Prior to that time, such firms were
within the now-superseded categories of ``Paging'' and ``Cellular and
Other Wireless Telecommunications.'' Under the present and prior
categories, the SBA has deemed a wireless business to be small if it
has 1,500 or fewer employees. For the category of Wireless
Telecommunications Carriers (except Satellite), Census data for 2007,
which supersede data contained in the 2002 Census, show that there were
1,383 firms that operated that year. Of those
[[Page 12959]]
1,383, 1,368 had fewer than 100 employees, and 15 firms had more than
100 employees. Thus under this category and the associated small
business size standard, the majority of firms can be considered small.
Similarly, according to Commission data, 413 carriers reported that
they were engaged in the provision of wireless telephony, including
cellular service, Personal Communications Service (PCS), and
Specialized Mobile Radio (SMR) Telephony services. Of these, an
estimated 261 have 1,500 or fewer employees and 152 have more than
1,500 employees. Consequently, the Commission estimates that
approximately half or more of these firms can be considered small.
Thus, using available data, we estimate that the majority of wireless
firms can be considered small.
53. Wireless Communications Services. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission defined ``small business'' for the wireless
communications services (WCS) auction as an entity with average gross
revenues of $40 million for each of the three preceding years, and a
``very small business'' as an entity with average gross revenues of $15
million for each of the three preceding years. The SBA has approved
these definitions. The Commission auctioned geographic area licenses in
the WCS service. In the auction, which commenced on April 15, 1997 and
closed on April 25, 1997, seven bidders won 31 licenses that qualified
as very small business entities, and one bidder won one license that
qualified as a small business entity.
54. Satellite Telecommunications Providers. Two economic census
categories address the satellite industry. The first category has a
small business size standard of $15 million or less in average annual
receipts, under SBA rules. The second has a size standard of $25
million or less in annual receipts.
55. The category of Satellite Telecommunications ``comprises
establishments primarily engaged in providing telecommunications
services to other establishments in the telecommunications and
broadcasting industries by forwarding and receiving communications
signals via a system of satellites or reselling satellite
telecommunications.'' Census Bureau data for 2007 show that 512
Satellite Telecommunications firms that operated for that entire year.
Of this total, 464 firms had annual receipts of under $10 million, and
18 firms had receipts of $10 million to $24,999,999. Consequently, the
Commission estimates that the majority of Satellite Telecommunications
firms are small entities that might be affected by our action.
56. The second category, i.e. ``All Other Telecommunications''
comprises ``establishments primarily engaged in providing specialized
telecommunications services, such as satellite tracking, communications
telemetry, and radar station operation. This industry also includes
establishments primarily engaged in providing satellite terminal
stations and associated facilities connected with one or more
terrestrial systems and capable of transmitting telecommunications to,
and receiving telecommunications from, satellite systems.
Establishments providing Internet services or voice over Internet
protocol (VoIP) services via client-supplied telecommunications
connections are also included in this industry.'' For this category,
Census Bureau data for 2007 show that there were a total of 2,383 firms
that operated for the entire year. Of this total, 2,347 firms had
annual receipts of under $25 million and 12 firms had annual receipts
of $25 million to $49,999,999. Consequently, the Commission estimates
that the majority of All Other Telecommunications firms are small
entities that might be affected by our action.
57. Common Carrier Paging. The SBA considers paging to be a
wireless telecommunications service and classifies it under the
industry classification Wireless Telecommunications Carriers (except
satellite). Under that classification, the applicable size standard is
that a business is small if it has 1,500 or fewer employees. For the
general category of Wireless Telecommunications Carriers (except
Satellite), Census data for 2007, which supersede data contained in the
2002 Census, show that there were 1,383 firms that operated that year.
Of those 1,383, 1,368 had fewer than 100 employees, and 15 firms had
more than 100 employees. Thus under this category and the associated
small business size standard, the majority of firms can be considered
small. The 2007 census also contains data for the specific category of
``Paging'' ``that is classified under the seven-number North American
Industry Classification System (NAICS) code 5172101. According to
Commission data, 291 carriers have reported that they are engaged in
Paging or Messaging Service. Of these, an estimated 289 have 1,500 or
fewer employees, and 2 have more than 1,500 employees. Consequently,
the Commission estimates that the majority of paging providers are
small entities that may be affected by our action. In addition, in the
Paging Third Report and Order, the Commission developed a small
business size standard for ``small businesses'' and ``very small
businesses'' for purposes of determining their eligibility for special
provisions such as bidding credits and installment payments. A ``small
business'' is an entity that, together with its affiliates and
controlling principals, has average gross revenues not exceeding $15
million for the preceding three years. Additionally, a ``very small
business'' is an entity that, together with its affiliates and
controlling principals, has average gross revenues that are not more
than $3 million for the preceding three years. The SBA has approved
these small business size standards. An auction of Metropolitan
Economic Area licenses commenced on February 24, 2000, and closed on
March 2, 2000. Of the 985 licenses auctioned, 440 were sold. Fifty-
seven companies claiming small business status won.
58. Wireless Telephony. Wireless telephony includes cellular,
personal communications services, and specialized mobile radio
telephony carriers. As noted, the SBA has developed a small business
size standard for Wireless Telecommunications Carriers (except
Satellite). Under the SBA small business size standard, a business is
small if it has 1,500 or fewer employees. According to the 2008 Trends
Report, 434 carriers reported that they were engaged in wireless
telephony. Of these, an estimated 222 have 1,500 or fewer employees and
212 have more than 1,500 employees. We have estimated that 222 of these
are small under the SBA small business size standard.
3. Internet Service Providers
59. The 2007 Economic Census places these firms, whose services
might include voice over Internet protocol (VoIP), in either of two
categories, depending on whether the service is provided over the
provider's own telecommunications facilities (e.g., cable and DSL
ISPs), or over client-supplied telecommunications connections (e.g.,
dial-up ISPs). The former are within the category of Wired
Telecommunications Carriers, which has an SBA small business size
standard of 1,500 or fewer employees. The latter are within the
category of All Other Telecommunications, which has a size standard of
annual receipts of $25 million or less. The most current Census Bureau
data for all such firms, however, are the 2002 data for the previous
census category called Internet Service Providers. That category had a
small
[[Page 12960]]
business size standard of $21 million or less in annual receipts, which
was revised in late 2005 to $23 million. The 2002 data show that there
were 2,529 such firms that operated for the entire year. Of those,
2,437 firms had annual receipts of under $10 million, and an additional
47 firms had receipts of between $10 million and $24,999,999.
Consequently, we estimate that the majority of ISP firms are small
entities.
60. The RFA requires an agency to describe any significant
alternatives that it has considered in developing its approach, which
may include the following four alternatives (among others): ``(1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for such small
entities; (3) the use of performance rather than design standards; and
(4) an exemption from coverage of the rule, or any part thereof, for
small entities.''
G. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements
61. Support Amounts for Voice Service. In the Order, we adopt an
interim rate of reimbursement for Lifeline in lieu of the prior tiered
system. The tiered system was tied to the subscriber line charge (SLC),
which we find to be an imprecise basis for Lifeline support given the
myriad changes in the telecommunications marketplace. This interim
monthly rate is set at $9.25 per subscriber. This interim support
amount was determined by calculating the average level of support from
the most recent disbursement data available. Because the interim
support amount is an average, some ETCs will receive more monthly
support while others receive less--regardless of size. While there may
be a slightly negative economic impact on some small entities, such an
impact will be felt by all entities currently receiving more than $9.25
per month per subscriber in Lifeline support, not just small entities.
However, as with our adoption of uniform consumer eligibility rules,
this uniform interim support amount will simplify program
administration by ETCs operating across different SLCs.
62. Uniform Eligibility Criteria. As part of the Commission's
effort to streamline the program, the Commission adopts a uniform set
of consumer eligibility requirements throughout the nation. This rule
alleviates some of the administrative burdens on ETCs operating in
multiple states caused by varying consumer eligibility requirements. We
anticipate that this new rule will significantly simplify program
administration by ETCs, resulting in greater program efficiencies.
Given that we permit states to adopt more permissive Lifeline
eligibility criteria on top of the base of federal Lifeline eligibility
criteria, no ETCs will face a smaller Lifeline subscriber base because
of the change in eligibility criteria. We expect no economic impact on
entities through the adoption of the federal eligibility criteria
across all states.
63. One-per-Household. First, the Order adopts a one-per-household
requirement. ``Household'' is defined consistent with the Low-Income
Home Energy Assistance Program as ``any individual or group of
individuals who are living together at the same address as one economic
unit,'' with an ``economic unit'' defined as ``all individuals
contributing to and sharing in the income and expenses of a household''
(which would include persons with no income who benefit from another
person's financial support). Second, the Order adopts procedures to
enable Lifeline applicants to demonstrate when initially enrolling in
the program that any other Lifeline recipients residing at their
residential address are part of a separate household and directs USAC,
within 30 days of the effective date of the Order, to develop a form
that will allow low-income households sharing an address to indicate
they are part of a separate household. Third, the Order also directs
USAC, within 30 days of the effective date of the Order, to develop
print and web materials to be posted on USAC's Web site that both USAC
and ETCs can use to educate consumers about the one-per-household rule
(i.e., how to determine what persons comprise a household). USAC will
prepare materials that the ETCs can rely on to educate their
subscribers about the one-per-household requirement.
64. We estimate that these rules will have a minimal economic
impact. While the rules will require eligible telecommunications
carriers to obtain information from a limited number of consumers about
their household arrangements, it will only impact those low-income
consumers who reside in group living facilities or at addresses shared
by multiple households. This information will be collected using a
worksheet to be designed and provided to the ETCs by USAC. This
information is necessary to assist qualifying consumers relying on
addresses shared by multiple households to obtain Lifeline service and
to document their compliance with the one-per-household rule.
Additionally, USAC will develop print and web materials that ETCs can
use to educate consumers about the one-per-household rule. We do not
expect these requirements to have a disproportionate impact on
carriers, including those that are small entities.
65. Certification of Consumer Eligibility. First, the Order amends
Sec. 54.410 of the Commission's rules to require all Lifeline
subscribers to provide certain certifications pertaining to their
eligibility for Lifeline upon initial program enrollment and annually
thereafter. Depending on the state, certifications should be collected
from consumers by carriers or the state Lifeline administrator or a
state agency.
66. Carriers and states (where applicable) may need to update their
existing certification forms to comply with the requirements of Sec.
54.410, as amended. Carriers already collect several similar
certifications from Lifeline subscribers at enrollment; thus, we expect
that the costs of compliance with the amended rule will be marginally
larger. Therefore, we anticipate that the effect of this rule will have
minimal economic impact. Carriers and states (where applicable) may
choose to use their existing certification forms so long as those forms
are updated to comply with the new certification rules. We also provide
in the Order that the new certification rules will not go into effect
until June 1, 2012, which will give carriers (both large and small)
time to make any needed system updates. We also expect to recover cost
savings to the program based on the reduction of ineligible consumers
stemming from the updated certification requirements. We do not expect
that this rule will disproportionately impact small entities.
67. Second, the Order requires ETCs (or the state administrator,
where applicable) to check the eligibility of new Lifeline subscribers
at enrollment by accessing available state or federal eligibility
databases. Where underlying eligibility data cannot be accessed through
a database, the Order requires new Lifeline subscribers to provide
documentation of program-based eligibility or income-based eligibility,
which the entity enrolling the subscriber should review (but not
retain). We acknowledge that compliance with the rule we adopt here
will involve some administrative costs for ETCs, for example, modifying
their internal processes and systems to comply with the new
documentation requirement. However, we do not expect
[[Page 12961]]
these costs to have a significant economic impact especially since we
limit this requirement to new customers rather than requiring ETCs to
re-verify all of their subscribers by obtaining documentary proof of
eligibility. We do not expect these costs to be disproportionately
large for small carriers. We also conclude that those costs are
outweighed by the significant benefits gained by protecting the Fund
from waste, fraud, and abuse. We estimate in the Order that up to 15
percent of current Lifeline subscribers may be ineligible for the
program, potentially representing as much as $375 million of support
per year. We expect that a rule requiring ETCs to obtain documentation
of program participation from new Lifeline applicants, in conjunction
with our efforts to implement a Lifeline database, will enable the
Commission to recapture those funds and prevent unbridled future growth
in the Fund. The resulting cost savings will in turn benefit those
consumers who contribute to the Universal Service Fund, new qualifying
low-income consumers, and our goal to modernize the program for a
broadband future. Further, while we will require consumers to provide
documentation of program- and income-eligibility to ETCs at enrollment,
consumers will no longer be required to provide such documentation as
part of the annual verification process in federal default states.
Moreover, consumers will not need to demonstrate eligibility at
enrollment (or annually) once that function is addressed through a
database. Lastly, we give ETCs until June 1, 2012, to implement
processes to document consumer eligibility for Lifeline. We expect that
these changes will reduce the burdens on both consumers and ETCs.
68. Third, the Order requires ETCs to make certain certifications
annually and when submitting for reimbursement from the program. The
Commission currently directs ETCs to make certain certifications
relating to the Lifeline program. Section 54.410 of the Commission's
rules, as modified, does not substantially change those requirements;
rather, the Commission adds additional certifications that the ETC must
make annually and when seeking reimbursement from the Fund. USAC and
the Commission have jointly developed the certification language and
the forms. Thus, carriers need only make the necessary internal
inquiries (e.g., ensure that they have received a signed certification
form from each Lifeline subscriber) and sign the forms as provided to
them by USAC. We do not expect that this requirement will have an
adverse financial impact on small entities.
69. Fourth, we replace the existing process used by ETCs and states
to verify ongoing consumer eligibility for Lifeline with a uniform rule
requiring all ETCs (or states, where applicable) to re-certify the
eligibility of their complete Lifeline subscriber base as of June 1,
2012. By the end of 2012, all ETCs (or states, where applicable) must
obtain from each Lifeline subscriber a re-certification form that
contains each of the required certifications listed in Sec. 54.410, as
amended, and report those results to USAC, the Commission, states
(where the state has jurisdiction over the carrier), and Tribal
governments (where applicable). Alternatively, in states where a state
agency or a third party has implemented a database that carriers may
query to re-certify the consumer's continued eligibility, the carrier
(or state agency or third-party, where applicable) must instead query
the database by the end of 2012 and maintain a record of what specific
data was used to re-certify eligibility and the date of re-
certification.
70. We have taken steps in implementing this rule to minimize the
impact on carriers and states performing the re-certification function.
This re-certification may be done on a rolling basis throughout the
year, at the ETC's election. ETCs (or states, where applicable) may re-
certify the continued eligibility of an ETC's Lifeline subscribers by
contacting them--which can be done in any of a number of ways,
including in person, in writing, by phone, by text message, by email,
or otherwise through the Internet--to confirm their continued
eligibility for Lifeline. As noted above, where available, ETCs and
states will access electronic eligibility data rather than contact each
subscriber to obtain an individual re-certification. Lastly, after
2012, ETCs may elect to have USAC administer the self-certification
process on their behalf. We do not expect the costs of re-certification
to disproportionately burden small entities, who will have a lesser
number of subscribers to contact and may opt to use less costly means
(such as text message or email) to contact their subscribers for re-
certification.
71. Tribal Lifeline Eligibility. First, the Order clarifies that
residents of Tribal lands are eligible for Lifeline (and Link Up
support if served by a high cost recipient) based on (1) income level;
(2) participation in any Tribal-specific federal assistance program
identified in the Commission's rules; or (3) participation in any other
program identified in the Commission's rules. We do not expect that
this clarification will have any financial impact, including on small
businesses, as it does not change existing program rules, but rather
removes any ambiguity in the interpretation of those rules by carriers
and consumers.
72. Second, the Order adopts the NPRM proposal to add the Food
Distribution Program on Indian Reservations (FDPIR) to the list of
programs that confer eligibility. We expect this rule change to have
only minimal financial impact. For example, carriers serving eligible
residents of Tribal lands will need to update their certification/
enrollment forms to add FDPIR to their list of qualifying programs.
However, the benefit that will accrue to eligible residents of Tribal
lands participating in FDPIR will outweigh the burdens to carriers. We
do not expect this rule to have a disproportionate impact on small
entities, for whom the cost of compliance would be the same as for
other carriers.
73. Third, the Order establishes a waiver and designation process
for those Tribal communities that are located outside of reservations,
but can show ties to defined Tribal communities, and removes the term
``near reservation'' from the Commission's definition of Tribal lands.
We do not expect this rule to have any financial impact, including on
small entities, as carriers will not have any role in the designation
process.
74. Fourth, the Order clarifies that we will continue to allow
self-certification of residence on Tribal lands. We do not expect this
rule to have any economic impact on any entities, as it clarifies,
rather than changes, existing program rules.
75. Electronic Signatures and Interactive Voice Response Systems.
In the Order, the Commission clarifies that ETCs may use electronic
signatures and interactive voice response systems to obtain Lifeline
subscriber certifications, provided the electronic signatures are
obtained in accordance with the requirements of the E-SIGN Act. We
expect no negative economic impact from this clarification because this
clarification makes obtaining subscriber signatures easier for all
ETCs.
76. National Accountability Database. The Order established a
national accountability database to reduce the likelihood that a
consumer or household will receive more than one subsidized service
through the low-income program. The Order directs the Bureau to work
with USAC and OMB to establish and implement the database
[[Page 12962]]
and associated processes. The Order directs ETCs to (1) populate the
database with the necessary subscriber information to implement these
processes and (2) query the database for each new subscriber prior to
receiving reimbursement from the fund for that subscriber. ETCs may
have to collect customer information which is not currently in their
possession to populate the database.
77. While the database imposes an economic impact on carriers to
populate the database, and potentially interface with the database, the
entire system will be designed to minimize burdens on small entities.
There are a number of ways in which the database has been designed to
limit the burden on small entities. First, the Commission does not
impose any real-time obligations on ETCs to update the database. The
ETCs must update the database prior to seeking reimbursement. Second,
to the extent that ETCs have not collected the necessary data from
existing customers to send to the duplicates database, ETCs will have a
significant period of time before the database is operational to
collect such information because the Commission projects that the
database could take up to a year to build and ETCs are given an
additional 60 days to populate the database. The Commission has
directed USAC to provide support to ETCs regarding how they should
populate the database, and this assistance should further reduce the
burden on ETCs, particularly those smaller entities with fewer back-
office resources and less sophisticated systems. For similar reasons,
the burden on small entities will be limited because the database will
be designed to accept the subscriber information in many different
formats, not just via a machine to machine connection. The database
will include an ID verification function, which had heretofore been
undertaken by some ETCs at their own expense. The database includes an
exception management and dispute resolution process so that the burden
on ETCs to handle disputes if a subscriber is classified as a duplicate
by the database will be limited.
78. Toll Limitation Service Support. In the Order, the Commission
begins the process of eliminating toll limitation service (TLS) support
and modifies its rules for which ETCs must offer TLS. The Commission
finds that TLS is less relevant in a marketplace where many ETCs do not
separately charge for ``toll'' or ``long distance'' calls. To the
extent an ETC still distinguishes between local and long distance
calling in its Lifeline service, it must provide at no additional cost
to the consumer the ability to limit or block calls that would result
in additional charge. Support for TLS will be eliminated over three
years to mitigate the impact of this change. In the first year of
limited TLS support, support will be capped at $3 per month per
consumer. In the second year, support will be limited to $2 per month
per consumer. In the third year, support will be eliminated. ETCs
seeking TLS reimbursement will need to adjust their TLS provisioning
methods as there will no longer be a separate TLS reimbursement outside
of the standard Lifeline support amount. This rule will have an
economic impact only on ETCs unable to provide TLS at an incremental
cost above the limits set in the rule.
79. Link Up. The Order will eliminate Link Up support to all ETCs
on non-Tribal lands and limit Link Up on Tribal lands to high cost
recipients deploying infrastructure. Marketplace trends indicate that
Lifeline consumers increasingly have service options from ETCs that
neither draw on Link Up support nor charge the consumer a service
initiation fee. In balancing a number of universal service goals with
finite resources, we conclude that dollars currently spent for Link Up
can be more effectively spent to improve and modernize the Lifeline
program. Some ETCs who had previously been receiving support from the
Fund will no longer receive such support, however, the rule will not
disproportionately impact small entities because the support is being
eliminated for all ETCs serving non-Tribal areas--not just small
entitites.
80. Subscriber Usage of Customer Supported Service. The Order
establishes a rule that pre-paid ETCs who do not charge a fee for the
service (pre-paid ETCs) may not seek Lifeline reimbursement until a
subscriber initiates service. Moreover, the rules require pre-paid ETCs
to de-enroll subscribers who fail to use the service within a
consecutive 60-day period and correspondingly update the duplicates
database within one business day of any such de-enrollment. These new
rules require pre-paid ETCs to monitor usage prior to seeking
reimbursement from the low-income fund. In an effort to make compliance
easier, the rules identify what actions on the part of consumers
constitute usage. Given that carriers already have systems in place
whereby usage is monitored so as to prevent consumers from using more
than their allocated minutes, the burden of de-enrolling those
consumers who do not use the service within a 60-day period is likely
minimal. Moreover, while there may be some administrative expense
related to updating the database, we anticipate such expense to be
nominal. The new rules also require pre-paid ETCs to inform subscribers
at service initiation of the usage and de-enrollment policies. This new
requirement only applies to those ETCs choosing to provide Lifeline
service at no charge to subscribers.
81. Minimum Consumer Charge. The Order does not adopt a minimum
consumer charge for Lifeline services and eliminates the current rule
imposing a minimum local charge on Tribal subscribers. The requirements
do not impose any obligations on carriers, large or small, therefore
there is no associated cost of compliance.
82. Marketing & Outreach. The Order requires ETCs to include plain,
easy-to-understand language in all of their Lifeline marketing
materials that the offering is a Lifeline-supported service; that
Lifeline is a government assistance program; that only eligible
consumers may enroll in the program; what documentation is necessary
for enrollment; and that the program is limited to one benefit per
household, consisting of either wireline or wireless service.
Additionally, we require ETCs to disclose the company name under which
it does business and the details of its Lifeline service offerings in
its Lifeline-related marketing and advertising. We do not anticipate
this rule to have a significant economic impact on any entities because
the costs of including basic program information in all marketing
materials should be minimal.
83. Audits and Enforcement. The Order adopts a new audit
requirement whereby newly designated ETCs will be audited by USAC
within the first 18 months of seeking Lifeline support in any single
state. This requirement is the same regardless of the size of the ETC.
Moreover, because all ETCs are required to maintain records for a
period of three years, submit annual recertification documentation, and
be subjected to discretionary USAC audits, this first year audit
requirement does not pose any burden or hardship on new ETCs or a
disproportionate burden on small ETCs.The Order also requires those
ETCs drawing more than $5 million in low-income support from the fund,
at the holding company level, to perform a biennial independent audit.
This requirement only pertains to large entities therefore there is no
impact, let alone a disproportionate one, on small ETCs.
84. In the Order, the Commission requires the submission of certain
ownership information to USAC in order to implement our new biennial
audit rule. ETCs are required to report
[[Page 12963]]
ownership information, including affiliates, holding companies, and any
branding, to USAC, along with relevant universal service identifiers so
that we may determine at the holding company level which ETCs meet the
$5 million threshold. In addition, the Order requires newly designated
ETCs to describe service offerings and type of service being provided.
These reporting requirements apply to all ETCs equally and do not have
a disproportionate impact on small providers. This reporting will help
the Commission increase accountability in our universal service
programs by simplifying the process of determining the total amount of
public support received by each recipient, regardless of corporate
structure. This new requirement will impose a burden on all ETCs,
though not one that has a significant economic impact. While there will
be some administrative costs associated with this requirement, the
overall burden should be minimal and will be greater for large ETCs
operating with complex corporate structures across multiple study
areas.
85. Payment of Low-Income Support. The Order adopts a three month
transition for low-income support to be disbursed based on actual
support in place of the current administrative process of paying low-
income support based on projected service. The Order accelerates USAC's
payment of low-income support for carriers filing the FCC Form 497
electronically by a monthly deadline. The window by which carriers must
file revisions or original FCC Form 497s is reduced from fifteen months
from the end of a calendar year, to a rolling twelve month window. In
order to accomplish this transition, the Commission sets forth a
procedure whereby entities determine which study area codes to
transition in each of the transition months, thereby allowing carriers
to proportionately distribute any potential financial burden resulting
from the transition to payments based on actual support. The Commission
sets the transition to payments based on actual support to begin in
July 2012, giving small entities, and all ETCs alike, ample time to
prepare for the transition to payments based on actual support. Any
economic impact of this revision would be equal to all entities.
86. In addition, the Commission expedites payment of low-income
funds for carriers that file the FCC Form 497 electronically by the
monthly deadline, thereby allowing ETCs to receive payments in a timely
manner for timely electronic filings, and helping small entities reduce
the negative financial impact of delayed payment. The Commission
narrowed the revision window for FCC Form 497s from fifteen months to a
rolling twelve month window. While carriers, large or small, may
experience a minor burden by narrowing this revision window, the burden
is minimized by the transition to payments on actual support. Carriers
should not require as much time to scrutinize payments received because
the calculations of projections and true-ups is being eliminated, and
payments will be based on actual support provided by the ETC. A twelve
month rolling window should be sufficient time for carriers to
reconcile their books and file any required revisions, without imposing
an unfair burden.
87. Bundled Services. In the Order, we amend Sec. Sec. 54.401 and
54.403 of the Commission's rules to adopt a federal policy providing
all ETCs (whether designated by a state or this Commission) the
flexibility to permit Lifeline subscribers to apply their Lifeline
discount to bundled service packages or packages containing optional
calling features available to Lifeline consumers. We do not expect this
rule change to have a substantial financial impact, as carriers can
elect not to offer bundled service packages or packages containing
optional calling features to Lifeline consumers. We are not mandating
that they do so at this time and will continue to weigh the effects of
the flexible policy adopted in the Order. We believe that the benefits
to consumers that could result from this rule outweigh the potential
costs of compliance for carriers who choose to make such plans
available to Lifeline consumers.
88. Support for Broadband: Pilot Program. The Order will establish
a broadband pilot program aimed at generating statistically significant
data that will allow the Commission, ETCs, and the public to analyze
the effectiveness of different approaches to using Lifeline funds to
making broadband more affordable for low-income Americans while
providing support that is sufficient but not excessive. The Commission
directs the Bureau to solicit applications from ETCs to participate in
the Pilot Program and to select a relatively small number of projects
to test the impact on broadband adoption with variations in the monthly
discount for broadband services, including variations on the discount
amount, the duration of the discount (phased down over time or
constant) over a 12-month period. The Bureau will also give preference
to ETCs that partner with third parties that have already developed
approaches to overcoming broadband adoption barriers, including digital
literacy, equipment costs, and relevance.
89. We do not expect these requirements to have a significant
economic impact on ETCs because entities have a choice of
participating. We also do not expect small entities to be
disproportionately impacted. The Bureau will consider whether the
projects proposed will promote entrepreneurs and other small businesses
in the provision and ownership of telecommunications services and
information services, consistent with section 257 of the Communications
Act, including those that may be socially and economically
disadvantaged businesses. All ETCs that choose to participate will be
required to collect and submit data throughout the pilot to USAC. The
collection of information is required to study the length and amount of
subsidy that is necessary for low-income consumers to adopt broadband.
The benefits of collecting information outweigh any costs.
90. Facilities-Based Requirements. In the Order, the Commission
forbears from applying the Act's facilities requirement of section
214(e)(1)(A) to all telecommunications carriers that seek limited ETC
designation to participate in the Lifeline program, subject to certain
conditions. Specifically, each carrier must (i) comply with certain 911
requirements; and (ii) file, subject to Bureau approval, a compliance
plan providing specific information regarding the carrier's service
offerings and outlining the measures the carrier will take to implement
the obligations contained in this Order. To avoid disruption to
subscribers served by existing Lifeline-only ETCs designated prior to
December 29, 2011, those ETCs can continue to receive reimbursement
pending approval of their compliance plan, provided they submit their
plan to the Bureau by July 1, 2012. Carriers designated after December
29, 2011 will not receive reimbursement from the Fund until the Bureau
approves their compliance plans.
91. We do not expect these changes to have a disproportionate
impact on entities, including those that are small entities, because
the Commission will no longer require carriers to seek forbearance from
the facilities requirement of section 214(e)(1)(a). The Commission,
however, will continue to require carriers seeking to forbear from the
facilities requirement of section 214 to comply with certain 911
requirements and to file and obtain approval from the Bureau of a
compliance plan describing the ETC's
[[Page 12964]]
adherence to certain protections designed to protect consumers and the
Fund. The Commission has historically imposed these requirements on
carriers seeking to forbear from the facilities requirement so this
will not unduly burden to all impacted entities.
H. Steps Taken To Minimize Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
92. The RFA requires an agency to describe any significant
alternatives that it has considered in developing its approach, which
may include the following four alternatives (among others): ``(1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance or reporting requirements under the rule for such small
entities; (3) the use of performance rather than design standards; and
(4) an exemption from coverage of the rule, or any part thereof, for
small entities.''
93. Support Amounts for Voice Service. The Commission considered
the establishment of a separate rate of reimbursement for different
types of providers. The Commission determined that such a system of
reimbursement would create administrative difficulties for USAC and for
ETCs. A tiered system, be it the prior structure or the one
contemplated for the benefit of small entities, does not treat all
subscribers equally and makes comparison of Lifeline plans difficult
for consumers. Therefore, we determined that the benefits of such a
structure do not outweigh the costs.
94. One Per Household. We considered alternatives to a one-per-
household rule, including a rule permitting one Lifeline-supported
service per adult and one Lifeline-supported service per residential
address. We did not, however, adopt these approaches--the former
because it would increase the size of the universal service fund,
inconsistent with our program goals, and the latter because it could
potentially exclude eligible consumers from the Lifeline program. Thus,
we found that the benefits of a one-per-household rule and the
associated processes we adopt today outweigh the potential costs.
95. Certification of Consumer Eligibility. We considered
alternatives that would require ETCs to verify only a portion of their
Lifeline subscriber base, including allowing small ETCs within a state
to perform sampling in the aggregate rather than on an individual
basis, requiring ETCs with a minimal number of Lifeline subscribers to
sample fewer subscribers than larger ETCs, and allowing all ETCs to
sample a lesser percentage of their Lifeline subscriber base. The
approach we adopt in the Order strikes an appropriate balance between
these interests by helping to identify and de-enroll ineligible
subscribers, while imposing fewer burdens on consumers and ETCs than a
full census survey (i.e., requiring consumers to annually produce
documentation to verify continued eligibility).
96. National Accountability Database. The Commission considered
whether ETCs would be obligated to update the database with customer
information in real-time. The Commission found that it would be overly
burdensome for ETCs, particularly ETCs which are also small entities,
to implement real-time connections between the database and carriers
given the limited benefits that real-time updates would provide. We
therefore did not adopt a rule that the database would have to be
updated in real-time. Furthermore, except for information regarding
customer de-enrollment, ETCs would have ten business days to update the
database once it has become aware that information regarding a
subscriber has changed. The Commission adopted a rule that the first
ETC to populate the database with a particular customer's information
would be able to receive reimbursement for that customer. The
Commission acknowledged that this rule would provide an advantage to
those ETCs with real-time updating capability, but the Commission found
that this approach would reduce the amount of duplicative support and
encourage the prompt transmission of data without imposing burdens that
a real-time updating requirement might impose on small entities.
97. Toll Limitation Service Support. The new TLS support rule, as
discussed above, may have an economic impact on entities, including an
impact on small entities because they are used to getting TLS support.
This rule will have an economic impact only on ETCs unable to provide
TLS at an incremental cost above limits set in the rule. In the Order,
we note that ILECs typically seek TLS support at a much lower rate than
competitive LECs. Small entities that purchase TLS will no longer be
able to seek reimbursement for the incremental costs of doing so after
2013. Therefore, small competitive LECs may still be required to offer
TLS to Lifeline subscribers but unable to receive sufficient support
for the incremental costs of doing so. However, we adopt this TLS
support rule to encourage efficiencies in the provisioning of TLS. In
light of the concerns expressed by competitive LECs, we considered
several other approaches to reforming TLS support, including a shorter
timeframe for reduction of TLS support as well as an immediate
elimination of support. We chose the approach adopted in the Order
because it is the least burdensome method to reform TLS support.
98. Link Up. While we considered some carriers' proposal to
decrease the Link Up support amount, and others to define more narrowly
appropriate and inappropriate uses of Link Up, on balance, the
Commission concluded that the dollars spent on Link Up in its current
form can be better spent on other uses, such as modernizing the program
and constraining the overall size of the fund. We acknowledge that some
ETCs will receive less support as a result of the elimination of Link
Up funds but the Commission has concluded that Link Up support has been
abused by some carriers and that USF dollars are better spent
supporting other aspects of the program.
99. Subscriber Usage of Customer Supported Services. We extend the
consumer usage condition (whereby subscribers will be de-enrolled if
they fail to use the service within a consecutive 60-day period) only
to free pre-paid services, which are those services for which
subscribers do not receive monthly bills and do not have any regular
billing relationship with the ETC, and decline at this time to impose
this condition on other types of Lifeline supported services. We are
sensitive to the administrative burden that a 60-day usage requirement
may have on post-paid services, and at this time do not extend the
usage requirements to post-paid services, whether wireline or wireless.
100. Audits and Enforcement. We adopt a requirement that every ETC
providing Lifeline service and drawing $5 million or more in the
aggregate on an annual basis from the low-income program hire an
independent audit firm to assess the ETC's overall compliance with the
program's requirements every two years. We considered imposing the
biennial independent audit requirement on all ETCs but rejected that as
too burdensome on small entities. We concluded it was appropriate to
focus the mandatory independent audit requirement on the largest
recipients who post the biggest risk to the program if they lack
effective internal controls to ensure compliance with Commission
requirements.
101. Payment of Low-Income Support. The Commission sought comment
on a
[[Page 12965]]
one month transition, as proposed by USAC, however the Commission found
that the financial impact of the one month proposed transition could
have been overly burdensome on the financial well-being of small
entities participating in the Lifeline program. The Commission
considered a two month transition as suggested by commenters, and went
one step further to extend the transition to three months, thus
allowing all carriers, especially small entities, to minimize any
potential negative financial impact by spreading the transition out
over the three months.
102. Bundled Services. We considered adopting a rule mandating that
all ETCs allow Lifeline discounts to be applied to any package
containing a voice component; however, we determined that we did not
have sufficient information in the record to evaluate the impact of a
rule at this time. We also adopt a rule that ETCs must explicitly
notify Lifeline subscribers purchasing bundled packages or packages
containing optional calling features that partial payments will first
be applied to pay down the allocated price of the Lifeline voice
services, and require ETCs to provide clear language to this effect on
the subscriber's bill. We do not expect that this rule will
disproportionately impact small businesses, which, as above, may opt
not to offer such plans to Lifeline subscribers. Additionally, we
expect that some carriers may already have processes in place to apply
partial payments to maintain the voice portion of a Lifeline calling
plan. Moreover, this rule will help to prevent Lifeline subscribers
from being disconnected from voice service for non-payment, thereby
reducing potential burdens that may result to ETCs from having to re-
enroll disconnected subscribers.
103. Report to Congress: The Commission will send a copy of the
Order, including this FRFA, in a report to be sent to Congress pursuant
to the Congressional Review Act. In addition, the Commission will send
a copy of the Order, including this FRFA, to the Chief Counsel for
Advocacy of the SVA. A copy of the Order and FRFA (or summaries
thereof) will also be published in the Federal Register.
XII. Ordering Clauses
104. Accordingly, it is ordered, that pursuant to the authority
contained in sections 1, 2, 4(i), 10, 201-206, 214, 218-220, 251, 252,
254, 256, 303(r), 332, and 403 of the Communications Act of 1934, as
amended, and section 706 of the Telecommunications Act of 1996, 47
U.S.C. 151, 152, 154(i), 160, 201-206, 214, 218-220, 251, 252, 254,
256, 303(r), 332, 403, 1302, and Sec. Sec. 1.1 and 1.427 of the
Commission's rules, 47 CFR 1.1, 1.427, this Report and Order is
Adopted.
105. It is further ordered that, Part 54 of the Commission's rules,
47 CFR part 54, is Amended as set forth in this rule, and such rule
amendments shall be effective April 2, 2012, except for those rules and
requirements that involve Paperwork Reduction Act burdens, which shall
become effective immediately upon announcement in the Federal Register
of OMB approval and of effective dates of such rules, and except for
the amendments contained herein to 47 CFR 54.411, 54.412, 54.413 and
54.414 which shall become effective April 1, 2012; and 47 CFR 54.409
which shall become effective June 1, 2012.
106. It is further ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, the petition for forbearance filed by AMERICAN BROADBAND &
TELECOMMUNICATIONS is granted to the extent discussed herein and
conditioned on fulfillment of the obligations set forth in this order.
107. It is further ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, the petition for forbearance filed by MILLENNIUM 2000, INC.
is granted to the extent discussed herein and conditioned on
fulfillment of the obligations set forth in this order.
108. It Is Further Ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, the petition for forbearance filed by NORTH AMERICAN LOCAL,
LLC is granted to the extent discussed herein and conditioned on
fulfillment of the obligations set forth in this order.
109. It is further ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, the petition for forbearance filed by TOTAL CALL MOBILE, INC.
is granted to the extent discussed herein and conditioned on
fulfillment of the obligations set forth in this order.
110. It is further ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, the petition for forbearance filed by AIRVOICE WIRELESS, LLC
Is granted to the extent discussed herein and conditioned on
fulfillment of the obligations set forth in this order.
111. It is further ordered that, pursuant to the authority
contained in sections 4(i), 4(j), 10, 214, and 254 of the
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 160,
214, 254, we forbear from applying section 214(e)(1)(A) of the
Communications Act, 47 U.S.C. 214(e)(1)(A), and Sec. 54.201(d)(1) and
(i) of the Commission's rules, 47 CFR 54.201(d)(1), (i), to American
Broadband & Telecommunications, Millennium 2000, Inc., North American
Local, LLC, Total Call Mobile, Inc. and Airvoice Wireless, LLC to the
extent discussed herein and conditioned on fulfillment of the
obligations set forth in this order.
112. It is further ordered that the Petition of Qwest, Inc.
regarding self-certification of subscribers on Tribal lands, filed
April 25, 2008, is granted.
113. It is further ordered that the Petition of AMERICAN PUBLIC
COMMUNICATIONS COUNCIL seeking a rulemaking regarding payphone service
eligibility for Lifeline support, filed December 6, 2010, is denied.
114. It is further ordered that the Petition of AMERICAN PUBLIC
COMMUNICATIONS COUNCIL for interim relief seeking to allow ETCs to
receive Lifeline support for services provided to payphones, filed
December 6, 2010, is denied.
115. It is further ordered that the Commission shall send a copy of
this Report and Order to Congress and to the Government Accountability
Office pursuant to the Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
116. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small
Business Administration.
List of Subjects in 47 CFR Part 54
Communications common carriers, Reporting and record keeping
requirements, Telecommunications, Telephone.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 54 as follows:
[[Page 12966]]
PART 54--UNIVERSAL SERVICE
0
1. The authority citation for part 54 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i), 201, 205, 214, 219, 220, 254,
303(r), 403, and 1302 unless otherwise noted.
Subpart A--General Information
0
2. Amend Sec. 54.5 by revising the definition of ``eligible
telecommunications carrier'' to read as follows:
Sec. 54.5 Terms and definitions.
* * * * *
Eligible telecommunications carrier. ``Eligible telecommunications
carrier'' means a carrier designated as such under subpart C of this
part.
* * * * *
Subpart B--Services Designated for Support
0
3. Amend Sec. 54.101 by revising paragraph (a) to read as follows:
Sec. 54.101 Supported services for rural, insular and high cost
areas.
(a) Services designated for support. Voice Telephony services shall
be supported by federal universal service support mechanisms. Eligible
voice telephony services must provide voice grade access to the public
switched network or its functional equivalent; minutes of use for local
service provided at no additional charge to end users; access to the
emergency services provided by local government or other public safety
organizations, such as 911 and enhanced 911, to the extent the local
government in an eligible carrier's service area has implemented 911 or
enhanced 911 systems; and toll limitation services to qualifying low-
income consumers as provided in subpart E of this part.
* * * * *
Subpart C--Carriers Eligible for Universal Service Support
0
4. Amend Sec. 54.201 by revising paragraphs (a)(1) and (h) to read as
follows:
Sec. 54.201 Definition of eligible telecommunications carriers
generally.
(a) * * *
(1) Only eligible telecommunications carriers designated under this
subpart shall receive universal service support distributed pursuant to
part 36 of this chapter, and subparts D and E of this part.
* * * * *
(h) A state commission shall not designate a common carrier as an
eligible telecommunications carrier for purposes of receiving support
only under subpart E of this part unless the carrier seeking such
designation has demonstrated that it is financially and technically
capable of providing the supported Lifeline service in compliance with
subpart E of this part.
* * * * *
0
5. Revise Sec. 54.202 to read as follows:
Sec. 54.202 Additional requirements for Commission designation of
eligible telecommunications carriers.
(a) In order to be designated an eligible telecommunications
carrier under section 214(e)(6), any common carrier in its application
must:
(1)(i) Certify that it will comply with the service requirements
applicable to the support that it receives.
(ii) Submit a five-year plan that describes with specificity
proposed improvements or upgrades to the applicant's network throughout
its proposed service area. Each applicant shall estimate the area and
population that will be served as a result of the improvements. Except,
a common carrier seeking designation as an eligible telecommunications
carrier in order to provide supported services only under subpart E of
this part does not need to submit such a five-year plan.
(2) Demonstrate its ability to remain functional in emergency
situations, including a demonstration that it has a reasonable amount
of back-up power to ensure functionality without an external power
source, is able to reroute traffic around damaged facilities, and is
capable of managing traffic spikes resulting from emergency situations.
(3) Demonstrate that it will satisfy applicable consumer protection
and service quality standards. A commitment by wireless applicants to
comply with the Cellular Telecommunications and Internet Association's
Consumer Code for Wireless Service will satisfy this requirement. Other
commitments will be considered on a case-by-case basis.
(4) For common carriers seeking designation as an eligible
telecommunications carrier for purposes of receiving support only under
subpart E of this part, demonstrate that it is financially and
technically capable of providing the Lifeline service in compliance
with subpart E of this part.
(5) For common carriers seeking designation as an eligible
telecommunications carrier for purposes of receiving support only under
subpart E of this part, submit information describing the terms and
conditions of any voice telephony service plans offered to Lifeline
subscribers, including details on the number of minutes provided as
part of the plan, additional charges, if any, for toll calls, and rates
for each such plan. To the extent the eligible telecommunications
carrier offers plans to Lifeline subscribers that are generally
available to the public, it may provide summary information regarding
such plans, such as a link to a public Web site outlining the terms and
conditions of such plans.
(b) Public interest standard. Prior to designating an eligible
telecommunications carrier pursuant to section 214(e)(6), the
Commission determines that such designation is in the public interest.
(c) A common carrier seeking designation as an eligible
telecommunications carrier under section 214(e)(6) for any part of
Tribal lands shall provide a copy of its petition to the affected
tribal government and tribal regulatory authority, as applicable, at
the time it files its petition with the Federal Communications
Commission. In addition, the Commission shall send any public notice
seeking comment on any petition for designation as an eligible
telecommunications carrier on Tribal lands, at the time it is released,
to the affected tribal government and tribal regulatory authority, as
applicable, by the most expeditious means available.
Sec. 54.209 [Removed]
0
6. Section 54.209 is removed.
Subpart E--Universal Service Support for Low-Income Consumers
0
7. Revise Sec. 54.400 to read as follows:
54.400 Terms and definitions.
As used in this subpart, the following terms shall be defined as
follows:
(a) Qualifying low-income consumer. A ``qualifying low-income
consumer'' is a consumer who meets the qualifications for Lifeline, as
specified in Sec. 54.409.
(b) Toll blocking service. ``Toll blocking service'' is a service
provided by an eligible telecommunications carrier that lets
subscribers elect not to allow the completion of outgoing toll calls
from their telecommunications channel.
(c) Toll control service. ``Toll control service'' is a service
provided by an eligible telecommunications carrier that allows
subscribers to specify a certain amount of toll usage that may be
incurred on their telecommunications channel per month or per billing
cycle.
(d) Toll limitation service. ``Toll limitation service'' denotes
either toll blocking service or toll control service
[[Page 12967]]
for eligible telecommunications carriers that are incapable of
providing both services. For eligible telecommunications carriers that
are capable of providing both services, ``toll limitation service''
denotes both toll blocking service and toll control service.
(e) Eligible resident of Tribal lands. An ``eligible resident of
Tribal lands'' is a ``qualifying low-income consumer,'' as defined in
paragraph (a) of this section, living on Tribal lands. For purposes of
this subpart, ``Tribal lands'' include any federally recognized Indian
tribe's reservation, pueblo, or colony, including former reservations
in Oklahoma; Alaska Native regions established pursuant to the Alaska
Native Claims Settlement Act (85 Stat. 688); Indian allotments;
Hawaiian Home Lands--areas held in trust for Native Hawaiians by the
state of Hawaii, pursuant to the Hawaiian Homes Commission Act, 1920
July 9, 1921, 42 Stat. 108, et. seq., as amended; and any land
designated as such by the Commission for purposes of this subpart
pursuant to the designation process in Sec. 54.412.
(f) Income. ``Income'' is all income actually received by all
members of a household. This includes salary before deductions for
taxes, public assistance benefits, social security payments, pensions,
unemployment compensation, veteran's benefits, inheritances, alimony,
child support payments, worker's compensation benefits, gifts, lottery
winnings, and the like. The only exceptions are student financial aid,
military housing and cost-of-living allowances, irregular income from
occasional small jobs such as baby-sitting or lawn mowing, and the
like.
(g) Duplicative support. ``Duplicative support'' exists when a
Lifeline subscriber is receiving two or more Lifeline services
concurrently or two or more subscribers in a household are receiving
Lifeline services or Tribal Link Up support concurrently.
(h) Household. A ``household'' is any individual or group of
individuals who are living together at the same address as one economic
unit. A household may include related and unrelated persons. An
``economic unit'' consists of all adult individuals contributing to and
sharing in the income and expenses of a household. An adult is any
person eighteen years or older. If an adult has no or minimal income,
and lives with someone who provides financial support to him/her, both
people shall be considered part of the same household. Children under
the age of eighteen living with their parents or guardians are
considered to be part of the same household as their parents or
guardians.
(i) National Lifeline Accountability Database or Database. The
``National Lifeline Accountability Database'' or ``Database'' is an
electronic system, with associated functions, processes, policies and
procedures, to facilitate the detection and elimination of duplicative
support, as directed by the Commission.
(j) Qualifying assistance program. A ``qualifying assistance
program'' means any of the federal, state, or Tribal assistance
programs participation in which, pursuant to Sec. 54.409(a) or (b),
qualifies a consumer for Lifeline service, including Medicaid;
Supplemental Nutrition Assistance Program; Supplemental Security
Income; Federal Public Housing Assistance (Section 8); Low-Income Home
Energy Assistance Program; National School Lunch Program's free lunch
program; Temporary Assistance for Needy Families; Bureau of Indian
Affairs general assistance; Tribally administered Temporary Assistance
for Needy Families (Tribal TANF); Head Start (only those households
meeting its income qualifying standard); or the Food Distribution
Program on Indian Reservations (FDPIR), and with respect to the
residents of any particular state, any other program so designated by
that state pursuant to Sec. 54.409(a).
0
8. Revise Sec. 54.401 to read as follows:
Sec. 54.401 Lifeline defined.
(a) As used in this subpart, Lifeline means a non-transferable
retail service offering:
(1) For which qualifying low-income consumers pay reduced charges
as a result of application of the Lifeline support amount described in
Sec. 54.403; and
(2) That provides qualifying low-income consumers with voice
telephony service as specified in Sec. 54.101(a). Toll limitation
service does not need to be offered for any Lifeline service that does
not distinguish between toll and non-toll calls in the pricing of the
service. If an eligible telecommunications carrier charges Lifeline
subscribers a fee for toll calls that is in addition to the per month
or per billing cycle price of the subscribers' Lifeline service, the
carrier must offer toll limitation service at no charge to its
subscribers as part of its Lifeline service offering.
(b) Eligible telecommunications carriers may allow qualifying low-
income consumers to apply Lifeline discounts to any residential service
plan that includes voice telephony service, including bundled packages
of voice and data services; and plans that include optional calling
features such as, but not limited to, caller identification, call
waiting, voicemail, and three-way calling. Eligible telecommunications
carriers may also permit qualifying low-income consumers to apply their
Lifeline discount to family shared calling plans.
(c) Eligible telecommunications carriers may not collect a service
deposit in order to initiate Lifeline service for plans that:
(1) Do not charge subscribers additional fees for toll calls; or
(2) That charge additional fees for toll calls, but the subscriber
voluntarily elects toll limitation service.
(d) When an eligible telecommunications carrier is designated by a
state commission, the state commission shall file or require the
eligible telecommunications carrier to file information with the
Administrator demonstrating that the carrier's Lifeline plan meets the
criteria set forth in this subpart and describing the terms and
conditions of any voice telephony service plans offered to Lifeline
subscribers, including details on the number of minutes provided as
part of the plan, additional charges, if any, for toll calls, and rates
for each such plan. To the extent the eligible telecommunications
carrier offers plans to Lifeline subscribers that are generally
available to the public, it may provide summary information regarding
such plans, such as a link to a public Web site outlining the terms and
conditions of such plans. Lifeline assistance shall be made available
to qualifying low-income consumers as soon as the Administrator
certifies that the carrier's Lifeline plan satisfies the criteria set
out in this subpart.
(e) Consistent with Sec. 52.33(a)(1)(i)(C) of this chapter,
eligible telecommunications carriers may not charge Lifeline customers
a monthly number-portability charge.
0
9. Revise Sec. 54.403 to read as follows:
Sec. 54.403 Lifeline support amount.
(a) The federal Lifeline support amount for all eligible
telecommunications carriers shall equal:
(1) Basic support amount. Federal Lifeline support in the amount of
$9.25 per month will be made available to an eligible
telecommunications carrier providing Lifeline service to a qualifying
low-income consumer, if that carrier certifies to the Administrator
that it will pass through the full amount of support to the qualifying
low-income consumer and that it has received any non-federal regulatory
approvals necessary to implement the rate reduction.
(2) Tribal lands support amount. Additional federal Lifeline
support of up to $25 per month will be made
[[Page 12968]]
available to an eligible telecommunications carrier providing Lifeline
service to an eligible resident of Tribal lands, as defined in Sec.
54.400 (e), to the extent that the eligible telecommunications carrier
certifies to the Administrator that it will pass through the full
Tribal lands support amount to the qualifying eligible resident of
Tribal lands and that it has received any non-federal regulatory
approvals necessary to implement the required rate reduction.
(b) Application of Lifeline discount amount.
(1) Eligible telecommunications carriers that charge federal End
User Common Line charges or equivalent federal charges must apply
federal Lifeline support to waive the federal End User Common Line
charges for Lifeline subscribers. Such carriers must apply any
additional federal support amount to a qualifying low-income consumer's
intrastate rate, if the carrier has received the non-federal regulatory
approvals necessary to implement the required rate reduction. Other
eligible telecommunications carriers must apply the federal Lifeline
support amount, plus any additional support amount, to reduce the cost
of any generally available residential service plan or package offered
by such carriers that provides voice telephony service as described in
Sec. 54.101, and charge Lifeline subscribers the resulting amount.
(2) Where a subscriber makes only a partial payment to an eligible
telecommunications carrier for a bundled service package, the eligible
telecommunications carrier must apply the partial payment first to the
allocated price of the voice telephony service component of the package
and then to the cost of any additional services included in the bundled
package.
(c) Toll limitation service. An eligible telecommunications carrier
providing toll limitation service voluntarily elected by Lifeline
subscribers whose Lifeline plans would otherwise include a fee for
placing a toll call that would be in addition to the per month or per
billing cycle price of the subscriber's Lifeline service, shall, for
April 2012 Lifeline disbursements through December 2013 Lifeline
disbursements, receive support in an amount equal to the lesser of:
(1) The eligible telecommunications carrier's incremental cost of
providing either toll blocking services or toll control services to
each Lifeline subscriber who has selected such service; or
(2) The following amounts for each Lifeline subscriber who has
selected toll blocking services or toll control services:
(i) $3.00 per month per subscriber during 2012; and
(ii) $2.00 per month per subscriber during 2013.
0
10. Add Sec. 54.404 to Subpart E to read as follows
Sec. 54.404 The National Lifeline Accountability Database.
(a) State certification. An eligible telecommunications carrier
operating in a state that provides an approved valid certification to
the Commission in accordance with this section is not required to
comply with the requirements set forth in paragraphs (b) and (c) of
this section with respect to the eligible telecommunications carriers'
subscribers in that state. A valid certification must include a
statement that the state has a comprehensive system in place to prevent
duplicative federal Lifeline support that is at least as robust as the
system adopted by the Commission and that incorporates information from
all eligible telecommunications carriers receiving low-income support
in the state and their subscribers. A valid certification must also
describe in detail how the state system functions and for each
requirement adopted by the Commission to prevent duplicative support,
how the state system performs the equivalent functions. The
certification must be submitted to the Commission no later than six
months from the effective date of this section of the Commission's
rules to be valid. Such certification will be considered approved
unless the Wireline Competition Bureau rejects the certification within
90 days of filing.
(b) The National Lifeline Accountability Database. In order to
receive Lifeline support, eligible telecommunications carriers
operating in states that have not provided the Commission with approved
valid certification pursuant to paragraph (a) of this section must
comply with the following requirements:
(1) All eligible telecommunications carriers must query the
National Lifeline Accountability Database to determine whether a
prospective subscriber who has executed a certification pursuant to
Sec. 54.410(d) is currently receiving a Lifeline service from another
eligible telecommunications carrier; and whether anyone else living at
the prospective subscriber's residential address is currently receiving
a Lifeline service.
(2) If the Database indicates that a prospective subscriber, who is
not seeking to port his or her telephone number, is currently receiving
a Lifeline service, the eligible telecommunications carrier must not
provide and shall not seek or receive Lifeline reimbursement for that
subscriber.
(3) If the Database indicates that another individual at the
prospective subscriber's residential address is currently receiving a
Lifeline service, the eligible telecommunications carrier must not seek
and will not receive Lifeline reimbursement for providing service to
that prospective subscriber, unless the prospective subscriber has
certified, pursuant to Sec. 54.410(d) that to the best of his or her
knowledge, no one in his or her household is already receiving a
Lifeline service.
(4) An eligible telecommunications carrier is not required to
comply with paragraphs (b)(1) through (3) of this section if it
receives notice from a state Lifeline administrator or other state
agency that the administrator or other agency has queried the Database
about a prospective subscriber and that providing the prospective
subscriber with a Lifeline benefit would not result in duplicative
support.
(5) Eligible telecommunications carriers may query the Database
only for the purposes provided in paragraphs (b)(1) through (b)(3) of
this section, and to determine whether information with respect to its
subscribers already in the Database is correct and complete.
(6) Eligible telecommunications carriers must transmit to the
Database in a format prescribed by the Administrator each new and
existing Lifeline subscriber's full name; full residential address;
date of birth and the last four digits of the subscriber's Social
Security number or Tribal Identification number, if the subscriber is a
member of a Tribal nation and does not have a Social Security number;
the telephone number associated with the Lifeline service; the date on
which the Lifeline service was initiated; the date on which the
Lifeline service was terminated, if it has been terminated; the amount
of support being sought for that subscriber; and the means through
which the subscriber qualified for Lifeline.
(7) In the event that two or more eligible telecommunications
carriers transmit the information required by this paragraph to the
Database for the same subscriber, only the eligible telecommunications
carrier whose information was received and processed by the Database
first, as determined by the Administrator, will be entitled to
reimbursement from the Fund for that subscriber.
(8) All eligible telecommunications carriers must update an
existing Lifeline subscriber's information in the Database
[[Page 12969]]
within ten business days of receiving any change to that information,
except as described in paragraph (b)(10) of this section.
(9) All eligible telecommunications carriers must obtain, from each
new and existing subscriber, consent to transmit the subscriber's
information. Prior to obtaining consent, the eligible
telecommunications carrier must describe to the subscriber, using
clear, easily understood language, the specific information being
transmitted, that the information is being transmitted to the
Administrator to ensure the proper administration of the Lifeline
program, and that failure to provide consent will result in subscriber
being denied the Lifeline service.
(10) When an eligible telecommunications carrier de-enrolls a
subscriber, it must transmit to the Database the date of Lifeline
service de-enrollment within one business day of de-enrollment.
(c) Tribal Link Up and the National Lifeline Accountability
Database. In order to receive universal service support reimbursement
for Tribal Link Up, eligible telecommunications carriers operating in
states that have not provided the Commission with a valid certification
pursuant to paragraph (a) of this section, must comply with the
following requirements:
(1) Such eligible telecommunications carriers must query the
Database to determine whether a prospective Link Up recipient who has
executed a certification pursuant to Sec. 54.410(d) has previously
received a Link Up benefit at the residential address provided by the
prospective subscriber.
(2) If the Database indicates that a prospective subscriber has
received a Link Up benefit at the residential address provided by the
subscriber, the eligible telecommunications provider must not seek Link
Up reimbursement for that subscriber.
(3) An eligible telecommunications carrier is not required to
comply with paragraphs (c)(1) through (c)(2) of this section, if it
receives notice from a state Lifeline administrator or other state
agency that the administrator or other agency has queried the Database
about a prospective subscriber and that providing the prospective
subscriber with a Link Up benefit would not result in duplicative
support or support to a subscriber who had already received Link Up
support at that residential address.
(4) All eligible telecommunications carriers must transmit to the
Database in a format prescribed by the Administrator each new and
existing Link Up recipient's full name; residential address; date of
birth; and the last four digits of the subscriber's Social Security
number, or Tribal identification number if the subscriber is a member
of a Tribal nation and does not have a Social Security number; the
telephone number associated with the Link Up support; and the date of
service activation. Where two or more eligible telecommunications
carriers transmit the information required by this paragraph to the
Database for the same subscriber, only the eligible telecommunications
carrier whose information was received and processed by the Database
first, as determined by the Administrator, will be entitled to
reimbursement from the Fund for that subscriber.
(5) All eligible telecommunications carriers must obtain, from each
new and existing subscriber, consent to transmit the information
required in paragraph (c) of this section. Prior to obtaining consent,
the eligible telecommunications carrier must describe to the
subscriber, using clear, easily understood language, the specific
information being transmitted, that the information is being
transmitted to the Administrator to ensure the proper administration of
the Link Up program, and that failure to provide consent will result in
the subscriber being denied the Link Up benefit.
0
11. Revise Sec. 54.405 to read as follows:
Sec. 54.405 Carrier obligation to offer Lifeline.
All eligible telecommunications carriers must:
(a) Make available Lifeline service, as defined in Sec. 54.401, to
qualifying low-income consumers.
(b) Publicize the availability of Lifeline service in a manner
reasonably designed to reach those likely to qualify for the service.
(c) Indicate on all materials describing the service, using easily
understood language, that it is a Lifeline service, that Lifeline is a
government assistance program, the service is non-transferable, only
eligible consumers may enroll in the program, and the program is
limited to one discount per household. For the purposes of this
section, the term ``materials describing the service'' includes all
print, audio, video, and web materials used to describe or enroll in
the Lifeline service offering, including application and certification
forms.
(d) Disclose the name of the eligible telecommunications carrier on
all materials describing the service.
(e) De-enrollment--(1) De-enrollment generally. If an eligible
telecommunications carrier has a reasonable basis to believe that a
Lifeline subscriber no longer meets the criteria to be considered a
qualifying low-income consumer under Sec. 54.409, the carrier must
notify the subscriber of impending termination of his or her Lifeline
service. Notification of impending termination must be sent in writing
separate from the subscriber's monthly bill, if one is provided, and
must be written in clear, easily understood language. A carrier
providing Lifeline service in a state that has dispute resolution
procedures applicable to Lifeline termination, that requires, at a
minimum, written notification of impending termination, must comply
with the applicable state requirements. The carrier must allow a
subscriber 30-days following the date of the impending termination
letter required to demonstrate continued eligibility. A subscriber
making such a demonstration must present proof of continued eligibility
to the carrier consistent with applicable annual re-certification
requirements, as described in Sec. 54.410(f). An eligible
telecommunications carrier must terminate any subscriber who fails to
demonstrate continued eligibility within the 30-day time period. A
carrier providing Lifeline service in a state that has dispute
resolution procedures applicable to Lifeline termination must comply
with the applicable state requirements.
(2) De-enrollment for duplicative support. Notwithstanding
paragraph (e)(1) of this section, upon notification by the
Administrator to any eligible telecommunications carrier that a
subscriber is receiving Lifeline service from another eligible
telecommunications carrier or that more than one member of a
subscriber's household is receiving Lifeline service and therefore that
the subscriber should be de-enrolled from participation in that
carrier's Lifeline program, the eligible telecommunications carrier
must de-enroll the subscriber from participation in that carrier's
Lifeline program within five business days. An eligible
telecommunications carrier shall not be eligible for Lifeline
reimbursement for any de-enrolled subscriber following the date of that
subscriber's de-enrollment.
(3) De-enrollment for non-usage. Notwithstanding paragraph (e)(1)
of this section, if a Lifeline subscriber fails to use, as ``usage'' is
defined in Sec. 54.407(c)(2), for 60 consecutive days a Lifeline
service that does not require the eligible telecommunications carrier
to assess or collect a monthly fee from its subscribers, an eligible
telecommunications carrier must provide the subscriber 30 days' notice,
using clear, easily understood language, that the subscriber's failure
to use the
[[Page 12970]]
Lifeline service within the 30-day notice period will result in service
termination for non-usage under this paragraph. If the subscriber uses
the Lifeline service within 30 days of the carrier providing such
notice, the eligible telecommunications carrier shall not terminate the
subscriber's Lifeline service. Eligible telecommunications carriers
shall report to the Commission annually the number of subscribers de-
enrolled for non-usage under this paragraph. This de-enrollment
information must be reported by month and must be submitted to the
Commission at the time an eligible telecommunications carrier submits
its annual certification report pursuant to Sec. 54.416.
(4) De-enrollment for failure to re-certify. Notwithstanding
paragraph (e)(1) of this section, an eligible telecommunications
carrier must de-enroll a Lifeline subscriber who does not respond to
the carrier's attempts to obtain re-certification of the subscriber's
continued eligibility as required by Sec. 54.410(f); who fails to
provide the annual one-per-household re-certifications as required by
Sec. 54.410(f); or who relies on a temporary address and fails to
respond to the carrier's address re-certification attempts pursuant to
Sec. 54.410(g). Prior to de-enrolling a subscriber under this
paragraph, the eligible telecommunications carrier must notify the
subscriber in writing separate from the subscriber's monthly bill, if
one is provided using clear, easily understood language, that failure
to respond to the re-certification request within 30 days of the date
of the request will trigger de-enrollment. If a subscriber does not
respond to the carrier's notice of impending de-enrollment, the carrier
must de-enroll the subscriber from Lifeline within five business days
after the expiration of the subscriber's time to respond to the re-
certification efforts.
0
12. Revise Sec. 54.407 to read as follows:
Sec. 54.407 Reimbursement for offering Lifeline.
(a) Universal service support for providing Lifeline shall be
provided directly to an eligible telecommunications carrier, based on
the number of actual qualifying low-income consumers it serves.
(b) An eligible telecommunications carrier may receive universal
service support reimbursement for each qualifying low-income consumer
served. For each qualifying low-income consumer receiving Lifeline
service, the reimbursement amount shall equal the federal support
amount, including the support amounts described in Sec. 54.403(a) and
(c). The eligible telecommunications carrier's universal service
support reimbursement shall not exceed the carrier's rate for that
offering, or similar offerings, subscribed to by consumers who do not
qualify for Lifeline.
(c) An eligible telecommunications carrier offering a Lifeline
service that does not require the eligible telecommunications carrier
to assess or collect a monthly fee from its subscribers:
(1) Shall not receive universal service support for a subscriber to
such Lifeline service until the subscriber activates the service by
whatever means specified by the carrier, such as completing an outbound
call; and
(2) After service activation, an eligible telecommunications
carrier shall only continue to receive universal service support
reimbursement for such Lifeline service provided to subscribers who
have used the service within the last 60 days, or who have cured their
non-usage as provided for in Sec. 54.405(e)(3). Any of these
activities, if undertaken by the subscriber will establish ``usage'' of
the Lifeline service:
(i) Completion of an outbound call;
(ii) Purchase of minutes from the eligible telecommunications
carrier to add to the subscriber's service plan;
(iii) Answering an incoming call from a party other than the
eligible telecommunications carrier or the eligible telecommunications
carrier's agent or representative; or
(iv) Responding to direct contact from the eligible communications
carrier and confirming that he or she wants to continue receiving the
Lifeline service.
(d) In order to receive universal service support reimbursement, an
eligible telecommunications carrier must certify, as part of each
request for reimbursement, that it is in compliance with all of the
rules in this subpart, and, to the extent required under this subpart,
has obtained valid certification and re-certification forms from each
of the subscribers for whom it is seeking reimbursement.
(e) In order to receive universal service support reimbursement, an
eligible telecommunications carrier must keep accurate records of the
revenues it forgoes in providing Lifeline services. Such records shall
be kept in the form directed by the Administrator and provided to the
Administrator at intervals as directed by the Administrator or as
provided in this subpart.
0
13. Revise Sec. 54.409 to read as follows:
Sec. 54.409 Consumer qualification for Lifeline.
(a) To constitute a qualifying low-income consumer:
(1) A consumer's household income as defined in Sec. 54.400(f)
must be at or below 135% of the Federal Poverty Guidelines for a
household of that size; or
(2) The consumer, one or more of the consumer's dependents, or the
consumer's household must receive benefits from one of the following
federal assistance programs: Medicaid; Supplemental Nutrition
Assistance Program; Supplemental Security Income; Federal Public
Housing Assistance (Section 8); Low-Income Home Energy Assistance
Program; National School Lunch Program's free lunch program; or
Temporary Assistance for Needy Families; or
(3) The consumer must meet eligibility criteria established by a
state for its residents, provided that such state-specific criteria are
based solely on income or factors directly related to income.
(b) A consumer who lives on Tribal lands is eligible for Lifeline
service as a ``qualifying low-income consumer'' as defined by Sec.
54.400(a) and as an ``eligible resident of Tribal lands'' as defined by
Sec. 54.400(e) if that consumer meets the qualifications for Lifeline
specified in paragraph (a) of this section or if the consumer, one or
more of the consumer's dependents, or the consumer's household
participates in one of the following Tribal-specific federal assistance
programs: Bureau of Indian Affairs general assistance; Tribally
administered Temporary Assistance for Needy Families; Head Start (only
those households meeting its income qualifying standard); or the Food
Distribution Program on Indian Reservations.
(c) In addition to meeting the qualifications provided in paragraph
(a) or (b) of this section, in order to constitute a qualifying low-
income consumer, a consumer must not already be receiving a Lifeline
service, and there must not be anyone else in the subscriber's
household subscribed to a Lifeline service.
0
14. Revise Sec. 54.410 to read as follows:
Sec. 54.410 Subscriber eligibility determination and certification.
(a) All eligible telecommunications carriers must implement
policies and procedures for ensuring that their Lifeline subscribers
are eligible to receive Lifeline services.
(b) Initial income-based eligibility determination.
[[Page 12971]]
(1) Except where a state Lifeline administrator or other state
agency is responsible for the initial determination of a subscriber's
eligibility, when a prospective subscriber seeks to qualify for
Lifeline or using the income-based eligibility criteria provided for in
Sec. 54.409(a)(1) or (a)(3) an eligible telecommunications carrier:
(i) Must not seek reimbursement for providing Lifeline to a
subscriber, unless the carrier has received a certification of
eligibility from the prospective subscriber that complies with the
requirements set forth in paragraph (d) of this section and has
confirmed the subscriber's income-based eligibility using the following
procedures:
(A) If an eligible telecommunications carrier can determine a
prospective subscriber's income-based eligibility by accessing one or
more databases containing information regarding the subscriber's income
(``income databases''), the eligible telecommunications carrier must
access such income databases and determine whether the prospective
subscriber qualifies for Lifeline.
(B) If an eligible telecommunications carrier cannot determine a
prospective subscriber's income-based eligibility by accessing income
databases, the eligible telecommunications carrier must review
documentation that establishes that the prospective subscriber meets
the income-eligibility criteria set forth in Sec. 54.409(a)(1) or
(a)(3). Acceptable documentation of income eligibility includes the
prior year's state, federal, or Tribal tax return; current income
statement from an employer or paycheck stub; a Social Security
statement of benefits; a Veterans Administration statement of benefits;
a retirement/pension statement of benefits; an Unemployment/Workers'
Compensation statement of benefit; federal or Tribal notice letter of
participation in General Assistance; or a divorce decree, child support
award, or other official document containing income information. If the
prospective subscriber presents documentation of income that does not
cover a full year, such as current pay stubs, the prospective
subscriber must present the same type of documentation covering three
consecutive months within the previous twelve months.
(ii) Must not retain copies of the documentation of a prospective
subscriber's income-based eligibility for Lifeline.
(iii) Must, consistent with Sec. 54.417, keep and maintain
accurate records detailing the data source a carrier used to determine
a subscriber's eligibility or the documentation a subscriber provided
to demonstrate his or her eligibility for Lifeline.
(2) Where a state Lifeline administrator or other state agency is
responsible for the initial determination of a subscriber's
eligibility, an eligible telecommunications carrier must not seek
reimbursement for providing Lifeline service to a subscriber, based on
that subscriber's income eligibility, unless the carrier has received
from the state Lifeline administrator or other state agency:
(i) Notice that the prospective subscriber meets the income-
eligibility criteria set forth in Sec. 54.409(a)(1) or (a)(3); and
(ii) A copy of the subscriber's certification that complies with
the requirements set forth in paragraph (d) of this section.
(c) Initial program-based eligibility determination.
(1) Except in states where a state Lifeline administrator or other
state agency is responsible for the initial determination of a
subscriber's program-based eligibility, when a prospective subscriber
seeks to qualify for Lifeline service using the program-based criteria
set forth in Sec. 54.409(a)(2), (a)(3) or (b), an eligible
telecommunications carrier:
(i) Must not seek reimbursement for providing Lifeline to a
subscriber unless the carrier has received a certification of
eligibility from the subscriber that complies with the requirements set
forth in paragraph (d) of this section and has confirmed the
subscriber's program-based eligibility using the following procedures:
(A) If the eligible telecommunications carrier can determine a
prospective subscriber's program-based eligibility for Lifeline by
accessing one or more databases containing information regarding
enrollment in qualifying assistance programs (``eligibility
databases''), the eligible telecommunications carrier must access such
eligibility databases to determine whether the prospective subscriber
qualifies for Lifeline based on participation in a qualifying
assistance program; or
(B) If an eligible telecommunications carrier cannot determine a
prospective subscriber's program-based eligibility for Lifeline by
accessing eligibility databases, the eligible telecommunications
carrier must review documentation demonstrating that a prospective
subscriber qualifies for Lifeline under the program-based eligibility
requirements. Acceptable documentation of program eligibility includes
the current or prior year's statement of benefits from a qualifying
assistance program, a notice or letter of participation in a qualifying
assistance program, program participation documents, or another
official document demonstrating that the prospective subscriber, one or
more of the prospective subscriber's dependents or the prospective
subscriber's household receives benefits from a qualifying assistance
program.
(ii) Must not retain copies of the documentation of a subscriber's
program-based eligibility for Lifeline services.
(iii) Must, consistent with Sec. 54.517, keep and maintain
accurate records detailing the data source a carrier used to determine
a subscriber's program-based eligibility or the documentation a
subscriber provided to demonstrate his or her eligibility for Lifeline.
(2) Where a state Lifeline administrator or other state agency is
responsible for the initial determination of a subscriber's
eligibility, when a prospective subscriber seeks to qualify for
Lifeline service using the program-based eligibility criteria provided
in Sec. 54.409, an eligible telecommunications carrier must not seek
reimbursement for providing Lifeline to a subscriber unless the carrier
has received from the state Lifeline administrator or other state
agency:
(i) Notice that the subscriber meets the program-based eligibility
criteria set forth in Sec. Sec. 54.409(a)(2), (a)(3) or (b); and
(ii) a copy of the subscriber's certification that complies with
the requirements set forth in paragraph (d) of this section.
(d) Eligibility certifications. Eligible telecommunications
carriers and state Lifeline administrators or other state agencies that
are responsible for the initial determination of a subscriber's
eligibility for Lifeline must provide prospective subscribers Lifeline
certification forms that in clear, easily understood language:
(1) Provide the following information:
(i) Lifeline is a federal benefit and that willfully making false
statements to obtain the benefit can result in fines, imprisonment, de-
enrollment or being barred from the program;
(ii) Only one Lifeline service is available per household;
(iii) A household is defined, for purposes of the Lifeline program,
as any individual or group of individuals who live together at the same
address and share income and expenses;
(iv) A household is not permitted to receive Lifeline benefits from
multiple providers;
(v) Violation of the one-per-household limitation constitutes a
violation of the
[[Page 12972]]
Commission's rules and will result in the subscriber's de-enrollment
from the program; and
(vi) Lifeline is a non-transferable benefit and the subscriber may
not transfer his or her benefit to any other person.
(2) Require each prospective subscriber to provide the following
information:
(i) The subscriber's full name;
(ii) The subscriber's full residential address;
(iii) Whether the subscriber's residential address is permanent or
temporary;
(iv) The subscriber's billing address, if different from the
subscriber's residential address;
(v) The subscriber's date of birth;
(vi) The last four digits of the subscriber's social security
number, or the subscriber's Tribal identification number, if the
subscriber is a member of a Tribal nation and does not have a social
security number;
(vii) If the subscriber is seeking to qualify for Lifeline under
the program-based criteria, as set forth in Sec. 54.409, the name of
the qualifying assistance program from which the subscriber, his or her
dependents, or his or her household receives benefits; and
(viii) If the subscriber is seeking to qualify for Lifeline under
the income-based criterion, as set forth in Sec. 54.409, the number of
individuals in his or her household.
(3) Require each prospective subscriber to certify, under penalty
of perjury, that:
(i) The subscriber meets the income-based or program-based
eligibility criteria for receiving Lifeline, provided in Sec. 54.409;
(ii) The subscriber will notify the carrier within 30 days if for
any reason he or she no longer satisfies the criteria for receiving
Lifeline including, as relevant, if the subscriber no longer meets the
income-based or program-based criteria for receiving Lifeline support,
the subscriber is receiving more than one Lifeline benefit, or another
member of the subscriber's household is receiving a Lifeline benefit.
(ii) If the subscriber is seeking to qualify for Lifeline as an
eligible resident of Tribal lands, he or she lives on Tribal lands, as
defined in 54.400(e);
(iii) If the subscriber moves to a new address, he or she will
provide that new address to the eligible telecommunications carrier
within 30 days;
(iv) If the subscriber provided a temporary residential address to
the eligible telecommunications carrier, he or she will be required to
verify his or her temporary residential address every 90 days;
(v) The subscriber's household will receive only one Lifeline
service and, to the best of his or her knowledge, the subscriber's
household is not already receiving a Lifeline service;
(vi) The information contained in the subscriber's certification
form is true and correct to the best of his or her knowledge,
(vii) The subscriber acknowledges that providing false or
fraudulent information to receive Lifeline benefits is punishable by
law; and
(viii) The subscriber acknowledges that the subscriber may be
required to re-certify his or her continued eligibility for Lifeline at
any time, and the subscriber's failure to re-certify as to his or her
continued eligibility will result in de-enrollment and the termination
of the subscriber's Lifeline benefits pursuant to Sec. 54.405(e)(4).
(e) State Lifeline administrators or other state agencies that are
responsible for the initial determination of a subscriber's eligibility
for Lifeline must provide each eligible telecommunications carrier with
a copy of each of the certification forms collected by the state
Lifeline administrator or other state agency from that carrier's
subscribers.
(f) Annual eligibility re-certification process.
(1) All eligible telecommunications carriers must annually re-
certify all subscribers except for subscribers in states where a state
Lifeline administrator or other state agency is responsible for re-
certification of subscribers' Lifeline eligibility.
(2) In order to re-certify a subscriber's eligibility, an eligible
telecommunications carrier must confirm a subscriber's current
eligibility to receive Lifeline by:
(i) Querying the appropriate eligibility databases, confirming that
the subscriber still meets the program-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(ii) Querying the appropriate income databases, confirming that the
subscriber continues to meet the income-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(iii) Obtaining a signed certification from the subscriber that
meets the certification requirements in paragraph (d) of this section.
(3) Where a state Lifeline administrator or other state agency is
responsible for re-certification of a subscriber's Lifeline
eligibility, the state Lifeline administrator or other state agency
must confirm a subscriber's current eligibility to receive a Lifeline
service by:
(i) Querying the appropriate eligibility databases, confirming that
the subscriber still meets the program-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(ii) Querying the appropriate income databases, confirming that the
subscriber continues to meet the income-based eligibility requirements
for Lifeline, and documenting the results of that review; or
(iii) Obtaining a signed certification from the subscriber that
meets the certification requirements in paragraph (d) of this section.
(4) Where a state Lifeline administrator or other state agency is
responsible for re-certification of subscribers' Lifeline eligibility,
the state Lifeline administrator or other state agency must provide to
each eligible telecommunications carrier the results of its annual re-
certification efforts with respect to that eligible telecommunications
carrier's subscribers.
(5) If an eligible telecommunications carrier is unable to re-
certify a subscriber or has been notified of a state Lifeline
administrator's or other state agency's inability to re-certify a
subscriber, the eligible telecommunications carrier must comply with
the de-enrollment requirements provided for in Sec. 54.405(e)(4).
(g) Re-certification of temporary address. An eligible
telecommunications carrier must re-certify, every 90 days, the
residential address of each of its subscribers who have provided a
temporary address as part of the subscriber's initial certification or
re-certification of eligibility, pursuant to paragraphs (d), (e), or
(f) of this section.
Sec. 54.411 [Removed]
0
15. Section 54.411 is removed.
0
16. Add Sec. 54.412 to Subpart E to read as follows:
Sec. 54.412 Off reservation Tribal lands designation process.
(a) The Commission's Wireline Competition Bureau and the Office of
Native Affairs and Policy may, upon receipt of a request made in
accordance with the requirements of this section, designate as Tribal
lands, for the purposes of the Lifeline and Tribal Link Up program,
areas or communities that fall outside the boundaries of existing
Tribal lands but which maintain the
[[Page 12973]]
same characteristics as lands identified as Tribal lands defined as in
Sec. 54.400(c).
(b) A request for designation must be made to the Commission by a
duly authorized official of a federally recognized American Indian
Tribe or Alaska Native Village.
(c) A request for designation must clearly describe a defined
geographical area for which the requesting party seeks designation as
Tribal lands.
(d) A request for designation must demonstrate the Tribal character
of the area or community.
(e) A request for designation must provide sufficient evidence of a
nexus between the area or community and the Tribe, and describe in
detail how program support to the area or community would aid the Tribe
in serving the needs and interests of its citizens and further the
Commission's goal of increasing telecommunications access on Tribal
lands.
(f) Upon designation by the Wireline Competition Bureau and the
Office of Native Affairs and Policy, the area or community described in
the designation shall be considered Tribal lands for the purposes of
this subpart.
0
17. Revise Sec. 54.413 to read as follows:
Sec. 54.413 Link Up for Tribal lands.
(a) Definition. For purposes of this subpart, the term ``Tribal
Link Up'' means an assistance program for eligible residents of Tribal
lands seeking telecommunications service from a telecommunications
carrier that is receiving high-cost support on Tribal lands, pursuant
to subpart D of this part, that provides:
(1) A 100 percent reduction, up to $100, of the customary charge
for commencing telecommunications service for a single
telecommunications connection at a subscriber's principal place of
residence imposed by an eligible telecommunications carrier that is
also receiving high-cost support on Tribal lands, pursuant to subpart D
of this part. For purposes of this subpart, a ``customary charge for
commencing telecommunications service'' is the ordinary charge an
eligible telecommunications carrier imposes and collects from all
subscribers to initiate service with that eligible telecommunications
carrier. A charge imposed only on qualifying low-income consumers to
initiate service is not a customary charge for commencing
telecommunications service. Activation charges routinely waived,
reduced, or eliminated with the purchase of additional products,
services, or minutes are not customary charges eligible for universal
service support; and
(2) A deferred schedule of payments of the customary charge for
commencing telecommunications service for a single telecommunications
connection at a subscriber's principal place of residence imposed by an
eligible telecommunications carrier that is also receiving high-cost
support on Tribal lands, pursuant to subpart D of this part, for which
the eligible resident of Tribal lands does not pay interest. The
interest charges not assessed to the eligible resident of tribal lands
shall be for a customary charge for connecting telecommunications
service of up to $200 and such interest charges shall be deferred for a
period not to exceed one year.
(b) An eligible resident of Tribal lands may receive the benefit of
the Tribal Link Up program for a second or subsequent time only for
otherwise qualifying commencement of telecommunications service at a
principal place of residence with an address different from the address
for which Tribal Link Up assistance was provided previously.
0
18. Add Sec. 54.414 to Subpart E to read as follows:
Sec. 54.414 Reimbursement for Tribal Link Up.
(a) Eligible telecommunications carriers that are receiving high-
cost support, pursuant to subpart D of this part, may receive universal
service support reimbursement for the reduction in their customary
charge for commencing telecommunications service and for providing a
deferred schedule for payment of the customary charge for commencing
telecommunications services for which the subscriber does not pay
interest, in conformity with Sec. 54.413.
(b) In order to receive universal support reimbursement for
providing Tribal Link Up, eligible telecommunications carriers must
follow the procedures set forth in Sec. 54.410 to determine an
eligible resident of Tribal lands' initial eligibility for Tribal Link
Up. Eligible telecommunications carriers must obtain a certification
form from each eligible resident of Tribal lands that complies with
Sec. 54.410 prior to enrolling him or her in Tribal Link Up.
(c) In order to receive universal service support reimbursement for
providing Tribal Link Up, eligible telecommunications carriers must
keep accurate records of the reductions in their customary charge for
commencing telecommunications service and for providing a deferred
schedule for payment of the charges assessed for commencing service for
which the subscriber does not pay interest, in conformity with Sec.
54.413. Such records shall be kept in the form directed by the
Administrator and provided to the Administrator at intervals as
directed by the Administrator or as provided in this subpart. The
reductions in the customary charge for which the eligible
telecommunications carrier may receive reimbursement shall include only
the difference between the carrier's customary connection or interest
charges and the charges actually assessed to the subscriber receiving
Lifeline services.
Sec. 54.415 [Removed]
0
19. Section 54.415 is removed.
0
20. Revise Sec. 54.416 to read as follows:
Sec. 54.416 Annual certifications by eligible telecommunications
carriers.
(a) Eligible telecommunications carrier certifications. Eligible
telecommunications carriers are required to make and submit to the
Administrator the following annual certifications, under penalty of
perjury, relating to the Lifeline program:
(1) An officer of each eligible telecommunications carrier must
certify that the carrier has policies and procedures in place to ensure
that its Lifeline subscribers are eligible to receive Lifeline
services. Each eligible telecommunications carrier must make this
certification annually to the Administrator as part of the carrier's
submission of annual re-certification data pursuant to this section. In
instances where an eligible telecommunications carrier confirms
consumer eligibility by relying on income or eligibility databases, as
defined in Sec. 54.410(b)(1)(i)(A) or (c)(1)(i)(A), the representative
must attest annually as to what specific data sources the eligible
telecommunications carrier used to confirm eligibility.
(2) An officer of the eligible telecommunications carrier must
certify that the carrier is in compliance with all federal Lifeline
certification procedures. Eligible telecommunications carriers must
make this certification annually to the Administrator as part of the
carrier's submission of re-certification data pursuant to this section.
(3) An officer of the eligible telecommunications carrier must
certify annually that the carrier has obtained a valid certification
form for each subscriber for whom the carrier seeks Lifeline
reimbursement.
(b) All eligible telecommunications carriers must annually provide
the results of their re-certification efforts, performed pursuant to
Sec. 54.410(f), to the Commission and the Administrator.
[[Page 12974]]
Eligible telecommunications carriers designated as such by one or more
states pursuant to Sec. 54.201 must also provide, on an annual basis,
the results of their re-certification efforts to state commissions for
subscribers residing in those states where the state designated the
eligible telecommunications carrier. Eligible telecommunications
carriers must also provide their annual re-certification results for
subscribers residing on Tribal lands to the relevant Tribal
governments.
(c) States that mandate Lifeline support may impose additional
standards on eligible telecommunications carriers operating in their
states to ensure compliance with state Lifeline programs.
0
21. Revise Sec. 54.417 to read as follows:
Sec. 54.417 Recordkeeping requirements.
(a) Eligible telecommunications carriers must maintain records to
document compliance with all Commission and state requirements
governing the Lifeline and Tribal Link Up program for the three full
preceding calendar years and provide that documentation to the
Commission or Administrator upon request. Notwithstanding the preceding
sentence, eligible telecommunications carriers must maintain the
documentation required in Sec. 54.410(d) and (f) for as long as the
subscriber receives Lifeline service from that eligible
telecommunications carrier.
(b) If an eligible telecommunications carrier provides Lifeline
discounted wholesale services to a reseller, it must obtain a
certification from that reseller that it is complying with all
Commission requirements governing the Lifeline and Tribal Link Up
program.
(c) Non-eligible-telecommunications-carrier resellers that purchase
Lifeline discounted wholesale services to offer discounted services to
low-income consumers must maintain records to document compliance with
all Commission requirements governing the Lifeline and Tribal Link Up
program for the three full preceding calendar years and provide that
documentation to the Commission or Administrator upon request. To the
extent such a reseller provides discounted services to low-income
consumers, it must fulfill the obligations of an eligible
telecommunications carrier in Sec. Sec. 54.405(e), 54.405(f), and
54.410.
0
22. Add Sec. 54.419 to Subpart E to read as follows:
Sec. 54.419 Validity of electronic signatures.
(a) For the purposes of this subpart, an electronic signature,
defined by the Electronic Signatures in Global and National Commerce
Act, as an electronic sound, symbol, or process, attached to or
logically associated with a contract or other record and executed or
adopted by a person with the intent to sign the record, has the same
legal effect as a written signature.
(b) For the purposes of this subpart, an electronic record, defined
by the Electronic Signatures in Global and National Commerce Act as a
contract or other record created, generated, sent, communicated,
received, or stored by electronic means, constitutes a record.
0
23. Add Sec. 54.420 to Subpart E to read as follows:
Sec. 54.420 Low income program audits.
(a) Independent audit requirements for eligible telecommunications
carriers. Companies that receive $5 million or more annually in the
aggregate, on a holding company basis, in Lifeline reimbursements must
obtain a third party biennial audit of their compliance with the rules
in this subpart. Such engagements shall be agreed upon performance
attestations to assess the company's overall compliance with rules and
the company's internal controls regarding these regulatory
requirements.
(1) For purposes of the $5 million threshold, a holding company
consists of operating companies and affiliates, as that term is defined
in section 3(2) of the Communications Act of 1934, as amended, that are
eligible telecommunications carriers.
(2) The initial audit must be completed one year after the
Commission issues a standardized audit plan outlining the scope of the
engagement and the extent of compliance testing to be performed by
third-party auditors and shall be conducted every two years thereafter,
unless directed otherwise by the Commission. The following minimum
requirements shall apply:
(i) The audit must be conducted by a licensed certified public
accounting firm that is independent of the carrier.
(ii) The engagement shall be conducted consistent with government
accounting standards (GAGAS).
(3) The certified public accounting firm shall submit to the
Commission any rule interpretations necessary to complete the biennial
audit, and the Administrator shall notify all firms subject to the
biennial audit requirement of such requests. The audit issue will be
noted, but not held as a negative finding, in future audit reports for
all carriers subject to this requirement unless and until guidance has
been provided by the Commission.
(4) Within 60 days after completion of the audit work, but prior to
finalization of the report, the third party auditor shall submit a
draft of the audit report to the Commission and the Administrator, who
shall be deemed authorized users of such reports. Finalized audit
reports must be provided to the Commission, the Administrator, and
relevant states and Tribal governments within 30 days of the issuance
of the final audit report. The reports will not be considered or deemed
confidential.
(5) Delegated authority. The Wireline Competition Bureau and the
Office of Managing Director have delegated authority to perform the
functions specified in paragraphs (a)(2) and (a)(3) of this section.
(b) Audit requirements for new eligible telecommunications
carriers. After a company is designated for the first time in any state
or territory the Administrator will audit that new eligible
telecommunications carrier to assess its overall compliance with the
rules in this subpart and the company's internal controls regarding
these regulatory requirements. This audit should be conducted within
the carrier's first twelve months of seeking federal low-income
Universal Service Fund support.
0
24. Add Sec. 54.422 to Subpart E to read as follows:
Sec. 54.422 Annual reporting for eligible telecommunications carriers
that receive low-income support.
(a) In order to receive support under this subpart, an eligible
telecommunications carrier must annually report the company name, names
of the company's holding company, operating companies and affiliates,
and any branding (a ``dba,'' or ``doing-business-as company'' or brand
designation) as well as relevant universal service identifiers for each
such entity by Study Area Code. For purposes of this paragraph,
``affiliates'' has the meaning set forth in section 3(2) of the
Communications Act of 1934, as amended.
(b) In order to receive support under this subpart, a common
carrier designated as an eligible telecommunications carrier under
section 214(e)(6) of the Act must annually provide:
(1) Detailed information on any outage in the prior calendar year,
as that term is defined in 47 CFR 4.5, of at least 30 minutes in
duration for each service area in which the eligible telecommunications
carrier is designated for any facilities it owns,
[[Page 12975]]
operates, leases, or otherwise utilizes that potentially affect:
(i) At least ten percent of the end users served in a designated
service area; or
(ii) A 911 special facility, as defined in 47 CFR 4.5(e).
(iii) Specifically, the eligible telecommunications carrier's
annual report must include information detailing:
(A) The date and time of onset of the outage;
(B) A brief description of the outage and its resolution;
(C) The particular services affected;
(D) The geographic areas affected by the outage;
(E) Steps taken to prevent a similar situation in the future; and
(F) The number of customers affected.
(2) The number of complaints per 1,000 connections (fixed or
mobile) in the prior calendar year;
(3) Certification of compliance with applicable service quality
standards and consumer protection rules;
(4) Certification that the carrier is able to function in emergency
situations as set forth in Sec. 54.202(a)(2);
(5) Information describing the terms and conditions of any voice
telephony service plans offered to Lifeline subscribers, including
details on the number of minutes provided as part of the plan,
additional charges, if any, for toll calls, and rates for each such
plan. To the extent the eligible telecommunications carrier offers
plans to Lifeline subscribers that are generally available to the
public, it may provide summary information regarding such plans, such
as a link to a public Web site outlining the terms and conditions of
such plans.
(c) All reports required by this section must be filed with the
Office of the Secretary of the Commission, and with the Administrator.
Such reports must also be filed with the relevant state commissions and
the relevant authority in a U.S. territory or Tribal governments, as
appropriate.
Note: The following appendixes will not appear in the Code of
Federal Regulations.
Appendix A
Certification Requirements for Lifeline Subscribers
Pursuant to the Universal Service Low-Income Order, all ETCs (or
the state Lifeline program administrator, where applicable) must
provide the following information in clear, easily understandable
language on their initial and annual Lifeline certification forms:
Household Information for Initial and Annual Certification Forms
Contact Information: All certification forms must ask
for the Lifeline subscriber's name and address information.
Residential Address: Prior to providing service to a
consumer, ETCs must collect a residential address from each
subscriber, which the subscriber must indicate is his/her permanent
address, and a billing address, if different than the subscriber's
residential address. ETCs should inform subscribers that, if the
subscriber moves, they must provide their new address to the ETC
within 30 days of moving.
A consumer who lacks a permanent residential address
(e.g., address not recognized by the Post Office, temporary living
situation) must provide a temporary residential service address or
other address identifying information that could be used to perform
a check for duplicative support.
Consumers using Post Office Box Addresses: Lifeline
subscribers may not use a post office box as their residential
address. An ETC may accept a P.O. Box or General Delivery address as
a billing address, but not a residential address.
Consumers with Temporary Addresses: ETCs must collect
permanent addresses from subscribers. If a subscriber does not have
a permanent address, ETCs must:
Inform applicants that, if they use a temporary
address, the ETC will attempt to verify every 90 days that the
subscriber continues to rely on that address, and (as noted above)
the subscriber must notify the ETC within 30 days of their new
address after moving.
Inform the subscriber that if he or she does not
respond to the ETC's address verification attempts within 30 days,
the subscriber may be de-enrolled from the ETC's Lifeline service.
Multiple Households Sharing an Address: Upon receiving
an application for Lifeline support, all ETCs must check the
duplicates database to determine whether an individual at the
applicant's residential address is currently receiving Lifeline-
supported service. The ETC must also search its own internal records
to ensure that it does not already provide Lifeline-supported
service to someone at that residential address.
If nobody at the residential address is currently
receiving Lifeline-supported service, the ETC may initiate Lifeline
service after determining that the household is otherwise eligible
to receive Lifeline and obtaining all required certifications from
the household.
If the ETC determines that an individual at the
applicant's residential address is currently receiving Lifeline-
supported service, the ETC must collect from the applicant upon
initial enrollment and annually thereafter a worksheet that: (1)
Explains the Commission's one-per-household rule; (2) contains a
check box that an applicant can mark to indicate that he or she
lives at an address occupied by multiple households; (3) provides a
space for the applicant to initial or certify that he or she shares
an address with other adults who do not contribute income to the
applicant's household and/or share in the household's expenses; and
(4) notifies applicants of the one-per-household certification
requirement adopted below and the penalty for a consumer's failure
to make the required one-per-household certification (i.e., de-
enrollment).
One-per-Household Certification: All consumers must
certify that they receive Lifeline support for a single subscription
per household.
All ETCs (or state agencies or third-parties, where
they are responsible for Lifeline enrollment in a state) must obtain
a certification from the subscriber at sign up and annually
thereafter attesting under penalty of perjury that the subscriber's
household is receiving no more than one Lifeline-supported service.
In addition, the certification form must include a place for the
subscriber to separately acknowledge that, to the best of his or her
knowledge, no one at the consumer's household is receiving a
Lifeline-supported service from any other provider.
The certification form must explain in clear, easily
understandable language that: (1) Lifeline is a federal benefit; (2)
Lifeline service is available for only one line per household; (3) a
household is defined, for purposes of the Lifeline program, as any
individual or group of individuals who live together at the same
address and share income and expenses; and (4) households are not
permitted to receive benefits from multiple providers.
The certification form must also contain clear, easily
understandable language stating that violation of the one-per-
household requirement would constitute a violation of the
Commission's rules and would result in the consumer's de-enrollment
from the program, and potentially, prosecution by the United States
government.
Eligibility Information for Initial and Annual Certification Forms
Identity Information: All certification forms must ask
for the Lifeline subscriber's date of birth and the last 4 digits of
the subscriber's social security number.
Establishing eligibility for Lifeline:
The certification form should be written in clear,
easily understandable language and should include a place for the
customer to sign under penalty of perjury attesting to his/her
eligibility for Lifeline. All ETCs (or the state Lifeline program
administrator, where applicable) should obtain the consumer's
signature certifying under penalty of perjury that:
The consumer either participates in a qualifying
federal program or meets the income qualifications to establish
eligibility for Lifeline;
The consumer has provided documentation of eligibility,
if required to do so;
The consumer attests that the information contained in
his or her application is true and correct to the best of his or her
knowledge and acknowledging that providing false or fraudulent
information to receive Lifeline benefits is punishable by law. The
certification form should explain that Lifeline is a government
benefit program
[[Page 12976]]
and consumers who willfully make false statements in order to obtain
the benefit can be punished by fine or imprisonment or can be barred
from the program.
The certification form must include space for consumers
qualifying for Lifeline under an income-based criterion to certify
the number of individuals in their household.
ETCs (or the state administrator, where applicable)
should also obtain the consumer's initials or signature on the
certification form acknowledging that the consumer may be required
to re-certify his or her continued eligibility for Lifeline at any
time, and that failure to do so will result in the termination of
the consumer's Lifeline benefits.
Consumer no longer eligible for Lifeline: The
certification form must notify the consumer using clear, easily
understandable language that he or she must inform the ETC within 30
days if (1) The consumer ceases to participate in a federal
qualifying program or programs or the consumer's annual household
income exceeds 135% of the Federal Poverty Guidelines; (2) the
consumer is receiving more than one Lifeline-supported service; or
(3) the consumer, for any other reason, no longer satisfies the
criteria for receiving Lifeline support. Additionally, prior to
enrolling in Lifeline, consumers must certify attest under penalty
of perjury that they understand the notification requirement, and
that they may be subject to penalties if they fail to follow this
requirement.
Tribal eligibility: Consumers seeking Tribal lands
Lifeline support must certify that they reside on Federally-
recognized Tribal lands.
Non-transferability of Lifeline benefit: The
certification form should inform consumers that Lifeline service is
a non-transferable benefit, and that a Lifeline subscriber may not
transfer his or her service to any other individual, including
another eligible low-income consumer.
Annual Re-Certification of Consumer Eligibility for Lifeline
By the end of 2012, each Lifeline subscriber enrolled
in the program as of June 1, 2012 must provide a signed re-
certification form to the ETC (or the state Lifeline administrator,
where applicable) attesting to their continued eligibility for
Lifeline. This signed certification should collect all of the
subscriber information noted above, including an updated address.
Consumers may provide the re-certification in writing, by phone, by
text message, by email, or otherwise through the Internet.
Alternatively, where a database containing consumer
eligibility data is available, the carrier (or state Lifeline
administrator, where applicable) must query the database by the end
of 2012 and maintain a record of what specific data was used to re-
certify the consumer's eligibility and the date that the consumer
was re-certified.
The ETC or the state administrator, where applicable,
must report the results of their re-certification efforts to USAC,
the Commission, and the relevant state commission (where the state
has jurisdiction over the carrier) by January 31, 2013. ETCs or the
state administrator, where applicable, should also provide their re-
certification results to the relevant Tribal government, for
subscribers residing on reservations or Tribal lands.
ETCs must remind consumers about the annual re-
certification requirement on the ETC's certification form that is
completed upon program enrollment and annually thereafter.
Database
Consent to provide information to the database: An ETC
must obtain acknowledgement and consent from each of its subscribers
that is written in clear, easily understandable language that the
subscriber's name, telephone number, and address will be divulged to
the Universal Service Administrative Company (USAC) (the
administrator of the program) and/or its agents for the purpose of
verifying that the subscriber does not receive more than one
Lifeline benefit. In the event that USAC identifies a consumer as
receiving more than one Lifeline subsidy per household, all carriers
involved may be notified so that the consumer may select one service
and be de-enrolled from the other.
Appendix B
Lifeline Verification Survey Results for 2011 and 2007
Table 1--Lifeline Verification Results for 2011
----------------------------------------------------------------------------------------------------------------
Percentage
State/territory Subscribers Found No response to deemed Percentage non-
surveyed ineligible survey ineligible responders
----------------------------------------------------------------------------------------------------------------
Federal Default States
----------------------------------------------------------------------------------------------------------------
American Samoa.................. 62 0 16 0 26
Delaware........................ 534 56 217 10 41
Hawaii.......................... 499 61 116 12 23
Indiana......................... 2,066 340 647 16 31
Iowa............................ 12,015 711 4,936 6 41
Louisiana....................... 3,656 331 926 9 25
New Hampshire................... 629 115 156 18 25
North Dakota.................... 2,240 419 706 19 32
Northern Mariana Islands........ 1,857 0 0 0 0
South Dakota.................... 2,411 243 802 10 33
----------------------------------------------------------------------------------------------------------------
Non-Federal-Default States Mandating That ETCs Follow Federal Verification Procedures
----------------------------------------------------------------------------------------------------------------
Arkansas........................ 6,114 384 653 6 11
New York........................ 6,276 401 1,755 6 28
North Carolina.................. 4,288 171 689 4 16
----------------------------------------------------------------------------------------------------------------
Non-Federal-Default States Requiring ETCs To Submit Verification Results to USAC
----------------------------------------------------------------------------------------------------------------
Alabama......................... 4,594 858 1,193 19 26
Arizona......................... 1,982 180 674 9 34
Pennsylvania.................... 2,519 226 395 9 16
West Virginia................... 1,123 198 338 18 30
Average......................... 52,865 4,694 14,219 9 27
----------------------------------------------------------------------------------------------------------------
[[Page 12977]]
Table 2--Lifeline Verification Results for 2007
----------------------------------------------------------------------------------------------------------------
Percentage
State/territory Subscribers Found No response to deemed Percentage non-
surveyed ineligible survey ineligible responders
----------------------------------------------------------------------------------------------------------------
Federal Default States
----------------------------------------------------------------------------------------------------------------
American Samoa.................. 154 3 0 2 0
Delaware........................ 250 4 162 2 65
Hawaii.......................... 296 54 11 18 4
Iowa............................ 9,492 1,646 1,219 17 13
Indiana......................... 2,669 991 1,065 37 40
Louisiana....................... 2,141 673 175 31 8
New Hampshire................... 483 108 212 22 44
North Dakota.................... 2,795 342 574 12 21
Northern Mariana Islands........ 947 0 0 0 0
South Dakota.................... 1,823 472 447 26 25
----------------------------------------------------------------------------------------------------------------
Non-Federal-Default States Mandating That ETCs Follow Federal Verification Procedures
----------------------------------------------------------------------------------------------------------------
Arkansas........................ 5,650 1,608 296 28 5
New York........................ 4,208 624 585 15 14
North Carolina.................. 10,534 940 600 9 6
----------------------------------------------------------------------------------------------------------------
Non-Federal-Default States Requiring ETCs To Submit Verification Results to USAC
----------------------------------------------------------------------------------------------------------------
Alabama......................... 4,618 1,393 454 30 10
Arizona......................... 1,313 619 525 47 40
Kentucky........................ 11,482 1,253 1,788 11 16
Pennsylvania.................... 138,453 10,956 9,866 8 7
Puerto Rico..................... 4 3 0 75 0
Tennessee....................... 4,907 1,562 891 32 18
West Virginia................... 838 109 702 13 84
Average......................... 203,057 23,360 19,572 12 10
----------------------------------------------------------------------------------------------------------------
Appendix C
Initial Commenters
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
AARP............................. AARP
Advocates for Basic Legal Consumer Groups
Equality, Inc., Community
Counseling Bristol County,
Community Voice Mail, Crossroads
Urban Center, Disability Right
Advocates, Legal Services
Advocacy Project, Low Income
Utility Advocacy Project,
National Center for Medical-
Legal Partnership, National
Consumer Law Center, On Behalf
of Our, Low-Income Clients, New
Jersey Shares, Ohio Poverty Law
Center, Open Access Connections,
Pennsylvania Utility Law
Project, Pro Seniors, Inc., Salt
Lake Community Action Program,
Texas Legal Services Center,
Virginia Citizens Consumer
Council.
Alaska Telephone Association..... ATA
American Library Association..... ALA
American Public Communications APCC
Council, Inc..
Amvensys Telecom Holdings, LLC... Amvensys
Area Agency on Aging of West Area Agency on Aging WCA
Central Arkansas.
Arkansas Advocates for Nursing AANHR
Home Residents.
Association of Programs for Rural APRIL
Independent Living.
AT&T............................. AT&T
Benton Foundation and Center for Benton/PK/UCC
Rural Strategies Public
Knowledge and United Church of
Christ, OC Inc..
Box Top Solutions, Inc........... Box Top
Budget Prepay, Inc., GreatCall, Budget/GreatCall/PR
Inc. and PR Wireless Inc. d/b/a
Open Mobile.
CenturyLink...................... CenturyLink
CGM, LLC......................... CGM
Cincinnati Bell Inc.............. Cincinnati Bell
City Councilor Sean Paulhus (ME)
City of New York................. City of NY
City of North Las Vegas.......... North Las Vegas
Comcast Corporation.............. Comcast
Commissioner Brenda Howerton (NC)
Commissioner Joe Bowser (NC)
Commissioner Lawrence Weekly (NV)
Commissioner Michael Page (NC)
Ogden-Weber Community Action OWCAP
Partnership.
COMPTEL.......................... COMPTEL
[[Page 12978]]
Conexions LLC d/b/a Conexion Conexions
Wireless.
Consumer Cellular, Inc........... CCI
Connecticut Department of Public CT DPUC
Utility Control.
Councilman Christopher A. Hilbert
(VA)
Councilman Howard Clement (NC)
Councilman Jamie Benoit (MD)
Councilman Kelvin E. Washington,
Sr. (SC)
Councilman Ricki Y. Barlow (NV)
Councilwoman Cora Cole-McFadden
(NC)
Cox Communication Inc............ Cox
CTIA-The Wireless Association.... CTIA
Daniel Reyes, III
Delegate Benjamin S. Barnes
Delegate Eileen Filler-Corn
Delegate Joe Morrissey (VA)
Delegate Paula J. Miller (VA)
Public Service Commission of the DC PSC
District of Columbia.
Educational Services Network, EDNet
Corp..
Executive Councilor Daniel St.
Hilaire (NH)
Florida Public Service Commission FL PSC
General Communication, Inc....... GCI
Gila River Telecommunications, GRTI
Inc..
House Democratic Caucus (GA)
Indiana Family and Social Indiana FSSA
Services Administration.
Indiana Utility Regulatory IN URC
Commission.
Institute for Health, Law & IHLE
Ethics.
Iridium Satellite LLC............ Iridium
Keep USF Fair Coalition.......... Keep USF Fair
Kevan Lee Deckelmann
Las Vegas Urban League........... Las Vegas Urban League
The Leadership Conference on LCCHR
Civil and Human Rights.
Leap Wireless International, Inc. Cricket
and Cricket Communications, Inc..
Massachusetts Department of MA DTC
Telecommunications and Cable.
Mayor Jim Bouley (NH)
Media Action Grassroots Network.. MAG-Net
Michigan Public Service MI PSC
Commission.
Minority Media and MMTC
Telecommunications Council.
Mississippi Public Service MS PSC
Commission.
Public Service Commission of the MO PSC
State of Missouri.
National ALEC Association/Prepaid NALA/PCA
Communications Association.
National Association for the NAACP Reno Sparks
Advancement of Colored People
Reno/Sparks Branch 1112.
National Association of State NASUCA
Utility Consumer Advocates.
National Association of NATOA
Telecommunications Officers and
Advisors.
National Cable & NCTA
Telecommunications Association.
National Consumer Law Center..... NCLC
National Telecommunications NTCA
Cooperative Association.
Nebraska Public Service NE PSC
Commission.
New America Foundation........... NAF
New Hampshire Coalition of Aging NH Coalition of Aging
Services.
New Hampshire Coalition Against NHCADSV
Domestic and Sexual Violence.
New Jersey Division of Rate NJ DRC
Counsel.
New York State Public Service NY PSC
Commission.
Nexus Communications, Inc........ Nexus
Ohio Association of Second OASHF
Harvest Food Banks.
Open Access Connections (formerly Open Access
Twin Cities Community Voice
Mail), Energy Cents Coalition,
Main Street Project, Minnesota
Center for Neighborhood,
Organizing Voices for Change.
One Economy Corp................. One Economy
Partnership for a Connected PCI
Illinois.
Public Utilities Commission of OH PUC
Ohio.
Public Utilities Commission of OR PUC
Oregon.
Rainbow PUSH Coalition........... Rainbow PUSH
Reunion Communications, Inc...... Reunion
San Juan Cable LLC d/b/a OneLink OneLink
Communications.
Several Members of the Texas
House Democratic Caucus
Smith Bagley, Inc................ SBI
Solix, Inc....................... Solix
Southern Nevada Children First... SNCF
Sprint Nextel Corp............... Sprint
State Representative Barbara B.
Boyd, Ed. D. (OH)
State Representative Bob Turner
(WI)
State Representative Christopher
J. England (AL)
State Representative Cory Mason
(WI)
[[Page 12979]]
State Representative Demetrius C.
Newton (AL)
State Representative Denise
Driehaus (OH)
State Representative Denise
Harlow (ME)
State Representative Diane
Russell (ME)
State Representative Dennis
Murray (OH)
State Representative J.M. Lozano
(TX)
State Representative John F.
Knight (AL)
State Representative John
Robinson (AL)
State Representative John W.
Rogers (AL)
State Representative Leslie Milam
Post (AR)
State Representative Mark Eves
(ME)
State Representative Peter
Stuckey (ME)
State Representative Ralph Howard
(AL)
State Representative Richard
Laird (AL)
State Representative Sheila
Lampkin (AR)
State Representative Stacy Adams
(GA)
State Representative Tony Payton
(PA)
State Senator Jason Wilson (OH)
State Senator John C. Astle (MD)
State Senator Thomas Mac
Middleton (MD)
Suzanne Burke
TCA.............................. TCA
TracFone Wireless, Inc........... TracFone
United States Telecom Association USTelecom
Verizon and Verizon Wireless..... Verizon
ViaSat, Inc...................... ViaSat
Virginia Interfaith Center for Virginia Interfaith Center
Public Policy.
YourTel America, Inc............. YourTel
------------------------------------------------------------------------
Appendix D
Reply Commenters
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
Advocates for Basic Legal Consumer Groups
Equality, Inc., Community Voice
Mail National, Disability Rights
Advocates, Low Income Utility
Advocacy Project, The National
Consumer Law Center, on Behalf
of our Low-Income Clients, Ohio
Poverty Law Center, Open Access
Connections, Pennsylvania
Utility Law Project, Pro
Seniors, Inc., Texas Legal
Services Center, Virginia
Citizens Consumer Council.
American Public Communications APCC
Council, Inc.
Amvensys Telecom Holdings, LLC... Amvensys
AT&T............................. AT&T
California Public Utilities CA PUC
Commission.
COMPTEL.......................... COMPTEL
CTIA--The Wireless Association... CTIA
Emerios.......................... Emerios
Fletcher School (Tufts Fletcher School
University).
General Communication, Inc....... GCI
Leap Wireless International, Inc. Cricket
and Cricket Communications, Inc.
Media Action Grassroots Network.. MAG-Net
MFY Legal Services, Inc.......... MFY Legal Services
Michigan Public Service MI PSC
Commission.
Montana Independent MITS
Telecommunications Systems, LLC.
National ALEC Association/Prepaid NALA/PCA
Communications Association.
National Association of State NASUCA
Utility Consumer Advocates.
National Hispanic Media Coalition NHMC
New Jersey Division of Rate NJ DRC
Counsel.
Nexus Communications, Inc........ Nexus
One Economy Corp., League of One Economy
United Latin America Citizens,
Minority Media and
Telecommunications Council.
Open Access Connections.......... Open Access Connections
PR Wireless, Inc. d/b/a Open PR Wireless
Mobile.
Regulatory Commission of Alaska.. Alaska Commission
Reunion Communications, Inc...... Reunion
Sprint Nextel Corporation........ Sprint
State of Alaska.................. Alaska
Texas Statewide Telephone TX Telephone Cooperative
Cooperative, Inc.
TracFone Wireless, Inc........... TracFone
Verizon and Verizon Wireless..... Verizon
YourTel America, Inc.............
------------------------------------------------------------------------
[[Page 12980]]
Appendix E
USAC Disbursement Public Notice Commenters
------------------------------------------------------------------------
Commenter Abbreviation
------------------------------------------------------------------------
Alexicon Telecommunications Alexicon
Consulting.
CenturyLink...................... CenturyLink
COMPTEL.......................... Comptel
Michigan Public Service MI PSC
Commission.
PR Wireless, Inc. d/b/a Open PR Wireless
Mobile.
Smith Bagley, Inc................ Smith Bagley
South Carolina Office of South Carolina Office of Regulatory
Regulatory Staff. Staff
Sprint Nextel Corporation........ Sprint
United States Telecom Association USTelecom
Verizon and Verizon Wireless..... Verizon and Verizon Wireless
------------------------------------------------------------------------
Reply Commenter
------------------------------------------------------------------------
Massachusetts Department of MDTC
Telecommunications and Cable.
National Tribal NTTA
Telecommunications Association.
Nexus Communications, Inc........ Nexus
------------------------------------------------------------------------
[FR Doc. 2012-4978 Filed 3-1-12; 8:45 am]
BILLING CODE 6712-01-P