The Federal Communications Commission just voted to expand the current Lifeline program to not only include subsidized phone and pre-paid wireless access for low-income households, but also Internet connectivity. The household subsidy pays $9.25 directly to Internet service providers (ISPs), and minimums for mobile broadband and cellphone voice minutes.
The program was launched in the 1980s during the Ronald Reagan presidency. It gives about 40 million Americans who receive federal assistance such as food stamps and Medicaid cheaper Internet access. Federal officials report that among Americans who qualify for Lifeline, over 13 million have no web connectivity, according to The Washington Post.
The goal of the expanded program is to make web access more affordable for poor Americans. This is due to sectors such as education and health care joining the Digital Age.
A delay in the vote was due to a political clash with two Republican FCC commissions voting against the program's expansion, according to Engadget.
The commissioners tried to work out a compromise that would set a spending cap of $2 billion per year. After it fell through a soft cap of $2.25 billion per year that can be adjusted if needed, was passed.
FCC Chairman Tom Wheeler said that the no Internet service prevents the poorest Americans from having the same chances as middle class or wealthy citizens.
However, FCC Republicans have argued that Wheeler's approach is not fiscally responsible. They tried to make a deal that included a $2 billion budget cap and faster Internet speeds that started at 25 Mbps.
However, consumer advocates argue that faster Internet speeds would cause more out-of-pocket expenses for low-income Americans. That would be counter-productive in trying to lower the cost of Internet access.
In related news Google Fiber has launched a new add-on service that provides a $10 landline. This gives customers an old-school phone with ultra-fast Internet broadband. It also helps to prevent customers from getting a phone line from a competitor such as AT&T, Verizon, or Comcast.
The service hopes to provide customers with a triple play Internet-TV-phone service on a single monthly bill. Customers can now enjoy high-speed Internet, cable TV, and phone line with unlimited local and nation-wide calls for $140.
Here's the FCC's Mignon Clyburn on the Lifeline program: