80 FR 35575 - Lifeline and Link Up Reform

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 119 (June 22, 2015)

Page Range		35575-35577
FR Document		2015-15295

In this document, the Wireline Competition Bureau (Bureau) clarifies rules regarding subscriber usage of Lifeline-supported service established in the Lifeline Reform Order. The Bureau clarifies that, pursuant to the Lifeline Reform Order, an eligible telecommunications carrier (ETC) must both assess and collect a monthly fee from a subscriber in order to avoid the Lifeline usage requirements, including the requirement to de-enroll inactive subscribers who fail to use the service within any consecutive 60-day period.

Federal Register, Volume 80 Issue 119 (Monday, June 22, 2015)

[Federal Register Volume 80, Number 119 (Monday, June 22, 2015)]
[Rules and Regulations]
[Pages 35575-35577]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15295]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 11-42; DA 15-398]


Lifeline and Link Up Reform

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Wireline Competition Bureau (Bureau) 
clarifies rules regarding subscriber usage of Lifeline-supported 
service established in the Lifeline Reform Order. The Bureau clarifies 
that, pursuant to the Lifeline Reform Order, an eligible

[[Page 35576]]

telecommunications carrier (ETC) must both assess and collect a monthly 
fee from a subscriber in order to avoid the Lifeline usage 
requirements, including the requirement to de-enroll inactive 
subscribers who fail to use the service within any consecutive 60-day 
period.

DATES: Effective July 22, 2015.

FOR FURTHER INFORMATION CONTACT: Jonathan Lechter, Wireline Competition 
Bureau, (202) 418-7400 or TTY: (202) 418-0484.

SUPPLEMENTARY INFORMATION: This is a summary of the Wireline 
Competition Bureau's Lifeline Non-Usage Clarification Order (Order) in 
WC Docket No. 11-42; DA 15-398, released on March 31, 2015. The 
complete text of this document is available for inspection and copying 
during normal business hours in the FCC Reference Information Center, 
Portals II, 445 12th Street SW., Room CY-A257, Washington, DC 20554. 
The document is also available on the Commission's Web site at: https://www.fcc.gov/document/clarification-lifeline-supported-service-rules.

I. Introduction

    1. In this Order, the Wireline Competition Bureau (Bureau) 
clarifies rules regarding subscriber usage of Lifeline-supported 
service established in the Lifeline Reform Order. The Bureau clarifies 
that, pursuant to the Lifeline Reform Order, 77 FR 12952, March 2, 
2012, an eligible telecommunications carrier (ETC) must both assess and 
collect a monthly fee from a subscriber in order to avoid the Lifeline 
usage requirements, including the requirement to de-enroll inactive 
subscribers who fail to use the service within any consecutive 60-day 
period.

II. Discussion

    2. The Bureau clarifies that in order to obtain Lifeline support, 
Lifeline ETCs who assess a monthly fee for service from their Lifeline 
subscribers must also collect the monthly fee from the subscriber, or 
follow the requisite procedures to de-enroll any inactive subscribers 
who have not used the service during any consecutive 60-day period. 
While the Order makes clear that ETCs who do not both assess and 
collect a monthly fee for service are prohibited from receiving 
Lifeline support for inactive subscribers, the related Commission rules 
require pre-paid ETCs to ``assess or collect'' a monthly fee in order 
to exempt itself from the non-usage de-enrollment requirements.
    3. The usage requirements as described in the Lifeline Reform Order 
are clear. As discussed in the Order, the consumer usage requirement 
applies only to ``pre-paid'' services--or services for which 
subscribers do not receive monthly bills and do not have a regular 
billing relationship with the ETC--because the lack of regular contact 
with the subscriber does not provide a reasonable opportunity for the 
ETC to ascertain a subscriber's continued intent to receive Lifeline 
benefits. Merely assessing a monthly fee on a subscriber does not 
provide sufficient contact with the subscriber to ascertain the 
subscriber's intent to use the service. Similarly, failing to actually 
collect the assessed fee does not provide the subscriber a sufficient 
incentive to place a value on the service. In such a situation, the 
consumer has little to lose by obtaining service that she may not use. 
Providing support for subscriber lines that are not used wastes limited 
funds. In contrast, actually collecting some monthly amount from 
subscribers is sufficient to ascertain subscriber intent and ensures 
that subscribers will continue to subscribe to the service only to the 
extent that they value and use the service.
    4. In the Lifeline Reform Order, the Bureau was delegated the 
authority to revise rules as necessary to ensure the reforms adopted 
through the Order are properly reflected in the rules. Pursuant to this 
authority, the Bureau clarifies that pre-paid ETCs must both assess and 
collect a charge for service on a monthly basis, or proceed to follow 
the procedures to de-enroll inactive subscribers who have not used the 
service during any consecutive 60-day period. The Bureau amends the 
rule language to reflect this clarification.

III. Procedural Matters

A. Congressional Review Act

    5. The Commission will send a copy of this in a report to be sent 
to Congress and the Government Accountability Office pursuant to the 
Congressional Review Act.

B. Final Regulatory Flexibility Act Certification

    6. The Regulatory Flexibility Act of 1980, as amended (RFA), 
requires agencies to prepare a regulatory flexibility analysis for 
rulemaking proceedings, unless the agency certifies that ``the rule 
will not have a significant economic impact on a substantial number of 
small entities.'' The RFA generally defines ``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 which: (1) Is independently owned and operated; (2) is 
not dominant in its field of operation; and (3) satisfies additional 
criteria established by the Small Business Administration (SBA).
    7. The Bureau hereby certifies that the rule revisions adopted in 
this Order will not have a significant economic impact on a substantial 
number of small entities. This Order clarifies rules adopted in the 
Lifeline Reform Order by correcting conflicts between the language of 
Order and the codified rules. These revisions do not create any 
burdens, benefits, or requirements that were not addressed in the Final 
Regulatory Flexibility Analysis attached to the Lifeline Reform Order. 
The Commission will send a copy of this Order, including a copy of this 
final certification, to the Chief Counsel for Advocacy of the Small 
Business Administration. In addition, the Order (or a summary thereof) 
and certification will be published in the Federal Register.

C. Paperwork Reduction Act Analysis

    8. This Order modifies information collection requirements adopted 
in the Lifeline Reform Order and is therefore subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. It has been submitted 
to the Office of Management and Budget (OMB) for review under Section 
3507 of the PRA. The Commission notes that pursuant to the Small 
Business Paperwork Relief Act of 2002, Public Law 107-108, the 
Commission previously sought specific comment on how it might further 
reduce the information collection burden on small business concerns 
with fewer than 25 employees.

IV. Ordering Clauses

    9. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 2, 4(i), 5(c), 10, 201 through 206, 214, 218 
through 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), 155(c), 
160, 201 through 206, 214, 218 through 220, 251, 252, 254, 256, 303(r), 
332, 403, 1302, Sec. Sec.  0.91, 0.291, 1.1, and 1.427 of the 
Commission's rules, 47 CFR 0.91, 0.291, 1.1, 1.427, and the delegation 
of authority in paragraph 507 of FCC 12-11, this Order is adopted.
    10. It is further ordered that, pursuant to Section 1.102(b)(1) of 
the Commission's rules, 47 CFR 1.102(b)(1),

[[Page 35577]]

this Order shall be effective July 22, 2015, except to the extent 
expressly addressed below.
    11. It is further ordered that the relevant rules are amended as 
set forth below. Those rules contain modified information collection 
requirements that are subject to the PRA and shall become effective 
July 22, 2015.
    12. It is further ordered that the Commission shall send a copy of 
this Order in a report to be sent to Congress and the Government 
Accountability Office pursuant to the Congressional Review Act.
    13. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order, including the Final Regulatory Flexibility 
Certification, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 54

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications, Telephone.

Federal Communications Commission.
Ryan B. Palmer,
Chief, Telecommunication Access Policy Division, Wireline Competition 
Bureau.

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 54 to read as follows:

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), 155, 201, 205, 214, 219, 220, 
254, 303(r), 403, and 1302 unless otherwise noted.


0
2. Amend Sec.  54.405 by revising paragraph (e)(3) to read as follows:


Sec.  54.405  Carrier obligation to offer Lifeline.

* * * * *
    (e) * * *
    (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 and 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 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 with 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 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.
* * * * *

0
3. Amend Sec.  54.407 by revising the paragraph (c) introductory text 
to read as follows:


Sec.  54.407  Reimbursement for offering Lifeline.

* * * * *
    (c) An eligible telecommunications carrier offering a Lifeline 
service that does not require the eligible telecommunications carrier 
to assess and collect a monthly fee from its subscribers:
* * * * *
[FR Doc. 2015-15295 Filed 6-19-15; 8:45 am]
 BILLING CODE 6712-01-P

Federal Register / Vol. 80, No. 119 / Monday, June 22, 2015 / Rules and Regulations 35575

Authority: 39 U.S.C. 503; 3622; 3631; § 3020.82 Docket and notice of material § 3020.91 Docket and notice of minor
3642; 3682. changes to product descriptions. corrections to product descriptions.
■ 2. Revise subpart E to read as follows: (a) The Commission shall take the (a) The Commission shall take the
actions identified in paragraphs (b) actions identified in paragraphs (b)
Subpart E—Requests Initiated by the Postal
Service To Make Material Changes or Minor
through (e) of this section. through (e) of this section.
Corrections to the Mail Classification (b) Establish a docket for each request (b) Establish a docket for each
Schedule to change a product description in the proposal to correct a product
Mail Classification Schedule; description in the Mail Classification
Sec.
3020.80 Material changes to product (c) Publish notice of the request on its Schedule;
descriptions. Web site; (c) Publish notice of the proposal on
3020.81 Supporting justification for (d) Designate an officer of the its Web site;
material changes to product descriptions. Commission to represent the interests of (d) Designate an officer of the
3020.82 Docket and notice of material the general public in the docket; and Commission to represent the interests of
changes to product descriptions. (e) Provide interested persons with an the general public in the docket; and
3020.83 Commission review of material opportunity to comment on whether the
changes to product descriptions.
(e) Provide interested persons with an
proposed changes are consistent with opportunity to comment on whether the
3020.84–3020.89 [Reserved]
title 39 and applicable Commission proposed corrections are consistent with
3020.90 Minor corrections to product
descriptions. regulations. title 39 and applicable Commission
3020.91 Docket and notice of minor § 3020.83 Commission review of material regulations.
corrections to product descriptions. changes to product descriptions.
3020.92 Commission review of minor § 3020.92 Commission review of minor
corrections to product descriptions. (a) The Commission shall review the corrections to product descriptions.
request and any comments filed. The (a) The Commission shall review the
Subpart E—Requests Initiated by the Commission shall take one of the notice and any comments filed. The
Postal Service To Make Material actions identified in paragraphs (b) Commission shall take one of the
Changes or Minor Corrections to the through (g) of this section. actions identified in paragraphs (b)
Mail Classification Schedule (b) Approve the proposed changes, through (g) of this section.
subject to editorial corrections, and (b) Approve the proposed corrections,
§ 3020.80 Material changes to product change the Mail Classification Schedule
descriptions. subject to editorial corrections, and
to coincide with the effective date of the change the Mail Classification Schedule
(a) Whenever the Postal Service proposed change;
proposes material changes to a product to coincide with the effective date of the
(c) Reject the proposed changes; proposed change;
description in the Mail Classification (d) Provide the Postal Service with an
Schedule, no later than 30 days prior to (c) Reject the proposed corrections;
opportunity to amend the proposed (d) Provide the Postal Service with an
implementing the proposed changes, it changes;
shall submit to the Commission a opportunity to amend the proposed
(e) Direct the Postal Service to make
request to change the product corrections;
an appropriate filing under a different
description in the Mail Classification (e) Direct the Postal Service to make
section;
Schedule. an appropriate filing under a different
(f) Institute further proceedings; or
(b) The request shall: (g) Direct other action that the section;
(1) Include a copy of the applicable Commission considers appropriate. (f) Institute further proceedings; or
sections of the Mail Classification (g) Direct other action that the
Schedule and the proposed changes §§ 3020.84–3020.89 [Reserved] Commission considers appropriate.
therein in legislative format; and § 3020.90 Minor corrections to product By the Commission.
(2) Provide all supporting justification descriptions. Ruth Ann Abrams,
for the changes upon which the Postal Acting Secretary.
Service proposes to rely. (a) The Postal Service shall ensure
that product descriptions in the Mail [FR Doc. 2015–15198 Filed 6–19–15; 8:45 am]
§ 3020.81 Supporting justification for Classification Schedule accurately BILLING CODE 7710–FW–P
material changes to product descriptions. represent the current offerings of the
(a) Supporting justification for Postal Service.
changes to a product description in the (b) The Postal Service shall submit FEDERAL COMMUNICATIONS
Mail Classification Schedule shall minor corrections to product COMMISSION
include a description of, and rationale descriptions in the Mail Classification
for, the proposed changes to the product Schedule by filing notice with the 47 CFR Part 54
description; and the additional material Commission no later than 15 days prior
[WC Docket No. 11–42; DA 15–398]
in paragraphs (b) and (c) of this section. to the effective date of the proposed
(b)(1) As to market dominant corrections. Lifeline and Link Up Reform
products, explain why the changes are (c) The notice shall:
not inconsistent with each requirement (1) Explain why the proposed AGENCY: Federal Communications
of 39 U.S.C. 3622(d) and part 3010 of corrections do not constitute material Commission.
this chapter; or changes to the product description for ACTION: Final rule.
(2) As to competitive products, purposes of § 3020.80;
explain why the changes will not result (2) Explain why the proposed SUMMARY: In this document, the
tkelley on DSK3SPTVN1PROD with RULES

in the violation of any of the standards corrections are consistent with any Wireline Competition Bureau (Bureau)
of 39 U.S.C. 3633 and part 3015 of this applicable provisions of title 39; and clarifies rules regarding subscriber usage
chapter. (3) Include a copy of the applicable of Lifeline-supported service established
(c) Describe the likely impact that the sections of the Mail Classification in the Lifeline Reform Order. The
changes will have on users of the Schedule and the proposed corrections Bureau clarifies that, pursuant to the
product and on competitors. therein in legislative format. Lifeline Reform Order, an eligible

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Document Created: 2018-02-22 11:13:40
Document Modified: 2018-02-22 11:13:40

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective July 22, 2015.
Contact		Jonathan Lechter, Wireline Competition Bureau, (202) 418-7400 or TTY: (202) 418-0484.
FR Citation		80 FR 35575
CFR Associated		Communications Common Carriers; Reporting and Recordkeeping Requirements; Telecommunications and Telephone