On Jan. 31, 2012, the Federal Communications Commission (FCC) adopted the most sweeping reforms of the federal Low Income program since 1996. At the time of our Feb. 1, 2012 advisory, the text of the FCC’s Order and Further Notice of Proposed Rulemaking (Rulemaking) was not yet available. The FCC released the text late Monday evening. Below we provide a brief summary of new details revealed in the 299-page document, with an emphasis on key implementation dates.

Link Up Eliminated

Link Up currently provides qualifying low income consumers with discounts of up to $30 off the initial cost of activating a single telecommunications connection. Effective Mar. 31, 2012, Link Up support will be eliminated on non-Tribal lands for all eligible telecommunications carriers (ETCs). An ETC, therefore, may not claim Link Up support for any subscriber enrolled on or after April 1, 2012. After that date, only ETCs that receive high-cost universal service support on Tribal lands may receive Link Up funds.

Blanket Forbearance from “Own Facilities” Requirement; Compliance Plans

An ETC generally is required to provide Lifeline service using either its own facilities or a combination of its own facilities and resold facilities. In late December, the FCC ruled that an ETC can no longer meet this requirement by providing only operator services or directory assistance through its own facilities. In the Order, the FCC granted blanket forbearance from the “own facilities” requirement. ETCs relying on this forbearance, however, must submit compliance plans to the FCC demonstrating compliance with the Order and 911 requirements. They must also provide a detailed description of the carrier’s service offerings. Carriers relying on forbearance must submit compliance plans to the FCC by July 1, 2012 in order to continue to receive Lifeline funds in any states in which they currently hold ETC designations. Any ETC designated after Dec. 29, 2011 that required forbearance must have its compliance plan approved by the FCC before it can receive Lifeline support.

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