Congress, the States, and the Federal Communications Commission (FCC) have expressed the importance of promoting universal service, i.e., ensuring that as many households as possible have access to the telecommunications network.The FCC offers universal service support to: (1) telecommunications carriers in rural, insular, and high cost areas, where telecommunications services are often more expensive to provide; (2) low-income consumers, through the Lifeline program (which provides monthly reductions in service charges) and Link Up program (which provides reductions in initial connection charges); and (3) schools, libraries, and rural health care providers(beginning January 1, 1998).
The Lifeline and Link Up programs, which directly benefit eligible low-income consumers,often are confused with the universal service program that provides support to telecommunications carriers in rural, insular, and high cost areas. While the universal service program that provides support to telecommunications carriers in rural, insular, and high cost areas lowers rates in those areas, many of the subscribers who benefit are not low-income.
On May 8, 1997, the FCC released the Universal Service Order, which made significant changes to the federal universal service program, including Lifeline and Link Up. The Lifeline and Link Up programs discussed below will take effect on January 1, 1998.
What is Lifeline?
Support Amount: The federal Lifeline program provides between $3.50 and $7 per month to reduce eligible consumers' monthly charges. The amount of federal support will vary depending on decisions made by the state commission (such as whether to provide state support). But, eligible low-income consumers in every state, territory, and possession will receive at least a $3.50 reduction on their telephone bill from the federal universal service support program. The reduction applies to a single telephone line at qualifying consumers' principal place of residence.Consumer Qualification: To qualify for Lifeline in states that provide state support, a consumer must meet the criteria established by the state commission. The state commission is required to establish narrowly targeted qualification criteria based on income or factors directly related to income.
In states that do not provide state support, a consumer must participate in one of the following programs: Medicaid; food stamps; Social Security Income (SSI); federal public housing assistance; or Low-Income Home Energy Assistance Program (LIHEAP). The named subscriber to the local telecommunication service (not any member of a household) must participate in one of these assistance programs in order for that household to receive Lifeline support.
Services: All qualifying low-income consumers will receive the following services: voice grade access to the public switched network; Dual Tone Multi-frequency; single-party service or its functional equivalent; access to emergency services; access to operator services; access to interexchange service; access to directory assistance; toll limitation,free of charge (provided that the carrier is technically capable of providing toll limitation). Toll limitation includes both toll blocking (which prevents the placement of any long-distance calls) and toll control (which limits the amount of long-distance calls to a pre-set amount selected by the consumer).
Carriers providing Lifeline may not disconnect qualifying low-income consumers' local service for non-payment of toll charges.
Carriers providing Lifeline may not collect a service deposit in order to initiate Lifeline service, if the qualifying low-income consumer voluntarily elects toll blocking.
The federal universal service program is funded by all providers of interstate telecommunications services.
All carriers designated by their state commission as eligible telecommunications carriers must offer Lifeline and Link Up to qualifying consumers.
What is Link Up?
Link Up offers eligible low-income consumers: (1) a reduction in the local telephone company's charges for starting telephone service (the reduction is one-half of the telephone company's charge or $30.00, whichever is less); and (2) a deferred payment plan for charges assessed for starting service, for which eligible consumers do not have to pay interest. Eligible consumers are relieved of paying interest charges of up to $200 that are deferred for a period not to exceed one year.Link Up does not reduce or eliminate any permissible security deposits.
The Link Up reduction applies to a single telephone line at eligible consumers' principal place of residence.
Qualifying consumers may receive the reduction in connection charges more than onceonly if they change residences.
In states that provide state Lifeline support, the consumer qualification criteria is the same as the Lifeline criteria. In states that do not provide state Lifeline support, the consumer qualification criteria for Link Up is participation in one of the following programs: Medicaid; food stamps; Social Security Income (SSI); federal public housing assistance;Low-Income Home Energy Assistance Program (LIHEAP).