The Federal Communications Commission is planning to include broadband Internet connection to an existing phone subsidy program called Lifeline. The proposed federal benefit is aimed at helping poor people take advantage of Internet access to get ahead at work and school in addition to the benefits it provide in accomplishing daily tasks.
The new initiative is ultimately expected to bridge the huge gap between poor and wealthy Americans in terms of high-speed Internet adoption.
"Internet access has become a prerequisite for full participation in our economy and our society, but nearly one in five Americans is still not benefiting from the opportunities made possible by the most powerful and pervasive platform in history," FCC Chairman Tom Wheeler and FCC Commissioner Mignon Clyburn said in a joint statement. "By modernizing the FCC's Lifeline program, we will do better."
The expanded Lifeline program was announced last year, and the FCC is expected to vote on the initiative on March 31. Here, qualified households can spend the $9.25 monthly phone subsidy on fixed, wired and cellular data plans, services that are not permitted under existing conditions. It will entail a significant budget increase for the agency, racking up as much as $2.25 billion in comparison to the existing $1.5 billion allotment.
Not everybody is happy about the proposal, however. While FCC's plan is expected to get the support of Democrats, several Republican figures have already expressed outrage. "Such irresponsible action will balloon a program plagued by waste, fraud and abuse, and result in higher phone bills for every American - including those already struggling in the current economy," said Michael O'Rielly, a Republican Commissioner at FCC.
FCC has argued that the Lifeline expansion will also include safeguards that will ensure that the subsidy is not abused. For instance, the initiative will include the creation of a national clearinghouse that will determine the eligibility of subsidized consumers.
To qualify for the improved Lifeline program, a consumer will only need to show proof that they fall below a specified income threshold. Another alternative involves proof that he or she is receiving food stamps. The FCC also promised not to hold application processing in makeshift tents to ensure that consumers are not embarrassed by the experience.
