80 FR 35575 - Lifeline and Link Up Reform

FEDERAL COMMUNICATIONS COMMISSION

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

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, 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