AT&T opts out of low-income Lifeline program, other incumbents expected to follow

AT&T, the largest telecommunications company in the country, is opting out of the FCC’s low-income Lifeline program after a long fight to update the program for broadband service.  The modernized program, which provides a modest federal subsidy for broadband service, goes into effect Dec. 2.

The company is choosing not to participate in the Lifeline for broadband program, citing administrative concerns, and instead highlighting its own low-income option, Access from AT&T, which offers broadband services for as low as $5 per month. According to Fortune, Verizon, CenturyLink, and Frontier are expected to follow AT&T’s lead and opt out of the Lifeline program.

“Lifeline is an historic initiative that will help connect millions of Americans to the home and mobile broadband that could serve as their pathway out of poverty with access to greater educational and economic opportunities,” said Jessica Gonzalez, general counsel at the National Hispanic Media Coalition. “AT&T’s decision to opt out of obligations sets a dangerous precedent for other carriers who may also choose to neglect low-income customers.”

Links:

FCC: Lifeline to include broadband (Speed Matters, May 30, 2016)

CWA voices support for Lifeline modernization (Speed Matters, Feb. 19, 2016)

Why Telecom Carriers Are Resisting a Program for Low-Income Internet Subsidies (Fortune, Dec. 1, 2016)