TracFone granted USF status: Prepaid carrier can apply for funds in 10 states, D.C.

The Federal Communications Commission said the nation’s top prepaid wireless company, TracFone Wireless Inc., is now eligible for universal service subsidies in ten states and the District of Columbia, a move aimed at addressing modern-day communications needs of low-income citizens.
“For quite some time the public debate has centered on whether and how the universal service system’s high-cost fund should support wireless CETCs [competitive eligible telecommunications carriers]. While an important policy discussion for sure, sometimes we lose sight of the fact that there is an entire segment of consumers who would lack a phone at all and would easily become disconnected from society were it not for the support of the Lifeline program,” said Michael Copps, a Democratic FCC member. “I am very pleased that today the commission takes a moment to focus on making it easier for low-income consumers to receive wireless phone service. . To some who own multiple phones of every size and shape, such a decision may seem inconsequential; but to the many working poor in this country phone service remains essential to staying connected with family, employers, and the communities in which they live. A wireless option will only make it easier for these consumers to stay connected.”
Commissioner Jonathan Adelstein, the other Democrat on the Republican-controlled FCC, agreed.
“Our Lifeline program forms the backbone of our efforts to reach low-income consumers. Through this order, the commission takes a modest step to expand the options available for low income consumers,” said Adelstein. “By designating a provider that actively targets low-income consumers for Lifeline support, this order should expand choice for these consumers. This is particularly important, given the commission’s estimate that only about one third of households eligible for Lifeline support actually subscribe to the program. Greater competition for low-income customers should lead to better service offerings, lower costs, and, most importantly, greater participation.”
Commissioner Deborah Taylor Tate noted that TracFone’s eligibility for universal service fund support is narrowly proscribed.
“TracFone will not be eligible for support for Link Up or toll-limitation service under the low-income program, nor will it be eligible for high-cost support, or for schools and libraries and rural health care support,” she stated. “In addition, we impose additional requirements on TracFone that obligate it to implement certain 911 and E911 requirements, including administrative procedures to safeguard against waste, fraud, and abuse.”
In addition to D.C., the ten states where TracFone can apply for universal service support are New York, Virginia, Connecticut, Massachusetts, Alabama, North Carolina, Tennessee, Delaware, New Hampshire and Pennsylvania.