Re-Evaluating FCC Policies Concerning the Lifeline & Link-Up Programs

Since 1984, the Lifeline Assistance program (“Lifeline”) has been the centerpiece of efforts by U.S. telecommunications regulators to ensure that traditional local telephone service is affordable for low-income households. Lifeline reduces monthly local telephone bills for customers who sign up for the benefit through a credit on their basic service charge. The Federal Communications Commission’s (“FCC”) rules establish the amount of the discount, which averaged $11.22 in 2004. The Link-Up America (“Link-Up”) program, a companion program to Lifeline, reduces the cost of telephone installation by fifty percent. The LinkUp reduction assumes the form of a credit to the service installation charge. A third program, toll limitation support, compensates eligible telecommunications carriers for offering no-cost toll limitation service.