FCC suggests subsidized broadband for poor, instead of telephones

At Thursday's open meeting of the Federal Communications Commission (FCC), a set of reforms to the Lifeline/Link-Up program was proposed, aiming at "modernizing and driving tougher accountability" for the program that provides discounts for telecommunications service and installation for lower-income consumers.

The existing program is part of the Universal Services Fund (USF), which is paid into by the major telecommunications companies and their subscribers. It offers discounts of up to $10 per customer for monthly bills and one half (up to $30) of installation fees for basic services. To be eligible for the program, consumers must be at, or less than 135% of, the federal poverty line (which has been set at $10,890/year per individual for 2011.)

Given the decreasing importance of wireline telephone services, the FCC is attempting to re-tool the USF so it may cater more to the "broadband gap."

"The Universal Service Fund has provided low-income households with discounts on monthly phone bills and initial installation charges since 1985. But program rules and administration have not kept pace with significant changes in technology, markets, and regulations, which have put increasing pressure on the program," a statement from the Commission said Thursday.

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