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U.S. telco regulator votes in favour of extending Lifeline programme to provide affordable Internet access to low-income households.
The U.S. Federal Communications Commission (FCC) this week voted in favour of a proposal to provide a broadband subsidy to help low-income households access the Internet.
The decision extends the FCC’s Lifeline programme – which contributes US$9.25 towards the monthly cost of fixed voice services to eligible consumers – to include standalone fixed or mobile broadband, as well as bundles of fixed or mobile voice and data services.
"Consumers need Internet access for full and meaningful participation in society. Yet 43% of [the] nation’s poorest households say they can’t afford modern broadband service," the FCC said on Thursday.
"To help close this digital divide, the order adopted by the Commission today refocuses Lifeline support on broadband, which will enable low-income Americans to share in the 21st century opportunities that access to the Internet provides."
Minimum standards of 10 Mbps downlink and 1 Mbps uplink speeds, and a 150 GB monthly usage allowance will apply to fixed services.
Usage allowances for 3G-based mobile data services will start at 500 MB per month from December 2016, rising to 1 GB by the end of 2017, and 2 GB by the end of 2018.
To ensure the Lifeline programme is not abused, the FCC will establish a National Eligibility Verifier, a neutral third party responsible for preventing ineligible consumers from receiving subsidies. It is also designed to reduce the administrative burden on telcos.
"We applaud the FCC’s modernisation of the Lifeline programme that will help to bring the transformative benefits of the Internet to millions of low-income Americans," said Walter McCormick Junior, CEO of broadband lobby group USTelecom, in a statement.
"By establishing a national system for verifying consumer eligibility for the programme, the FCC can work toward reducing instances of waste, fraud, and abuse," he continued. "We look forward to working with the Commission to implement the changes in the programme."
