**DA 05-1406**

WIRELINE COMPETITION BUREAU ANSWERS

FREQUENTLY ASKED QUESTIONS CONCERNING

LIFELINE ORDER

**CC Docket No. 96-45**

**Release Date: May 18, 2005**

The Commission's April 29, 2004 order addressing Lifeline and Link-Up
imposes certain requirements on all states regarding the establishment
of certification and verification procedures for recipients of federal
Lifeline and Link-Up universal service support.[^1]

Under the terms of the *Lifeline* *Order*, states that have their own
state-based Lifeline and Link-Up programs have flexibility in how the
certification and verification procedures are established and
administered. States that do not have these state-based low income
programs are designated "federal default states" and must follow
certification and verification procedures set out in the *Lifeline
Order*. Under the terms of the *Lifeline Order*, all states \--
including federal default states \-- must have their certification and
verification procedures in place by June 22, 2005.[^2]

The Wireline Competition Bureau (Bureau) has received several inquiries
concerning implementation of the *Lifeline Order*'s rules. In this
Public Notice, we provide answers to frequently asked questions.

For further information, contact Mika Savir, Telecommunications Access
Policy Division, Wireline Competition Bureau at (202) 418-7400, TTY
(202) 418-0484.

***Lifeline Order* Frequently Asked Questions**

1.  **Is my state a federal default state?**

Below is a list of states that have identified themselves as federal
default states. If your state is not listed below, you should contact
the state commission for its certification and verification procedures.
If a state changes its designation, the state commission should contact
the Federal Communications Commission.

Delaware

Hawaii

Iowa

Illinois

Indiana

Louisiana

New Hampshire

American Samoa

Northern Mariana Islands

2.  **I am a service provider with Lifeline customers. What is the
    deadline for filing the statistically valid sampling of Lifeline
    customers for purposes of verification?**

For federal default states, all verification sampling must be submitted
by June 22, 2005.[^3] Eligible telecommunications providers (ETCs) in
federal default states should submit their results vie e-mail to
[**pgallant@universalservice.org**](mailto:pgallant@universalservice.org).
If you wish, you may also mail a paper copy of your response to:

Pamela Gallant

Director of Low Income Programs

USAC

2000 L Street, NW

Suite 200

Washington, DC 20036

ETCs in states that mandate state Lifeline assistance should comply with
the state verification procedures, including any deadlines set by those
states.[^4]

3.  **If I am a service provider in a federal default state, and I have
    not received replies from all of my verification sample recipients
    by June 22, what should I do?**

By June 22, 2005, ETCs in federal default states should file with USAC
the results that they have obtained from their sampling and should note
the number of outstanding replies. ETCs should update their filing upon
completing the survey.

Note that in federal default states, customers have sixty days to verify
compliance. After sixty days, if a customer has not verified their
continued eligibility, ETCs should discontinue the customer's Lifeline
support.[^5]

4.  **My state mandates state-based Lifeline assistance and is therefore
    not a federal default state. My state has a different verification
    deadline for submission of verification samples which is after the
    upcoming June 22 deadline. Will I be violating FCC rules if I submit
    my verification sample in compliance with the state deadline?**

States that mandate a state-based Lifeline assistance have discretion to
set up their own verification procedures, including timing of reports
and to whom the report should be submitted. On June 22, 2005, states
that mandate state-based Lifeline support must have their procedures in
place, but those procedures may establish deadlines and requirements
that are different from the federal default requirements.[^6]

5.  **I am a service provider with Lifeline customers. In creating the
    statistically valid sample for verification purposes, what area
    should the sample be taken from, e.g., from my Lifeline customers in
    each study area, from my Lifeline customers within a state, or from
    my Lifeline customers across the nation?**

The *Lifeline Order* contemplates program eligibility requirements on a
state-by-state basis. Therefore, in federal default states, the
verification sample should be drawn from the company's Lifeline
customers on a state-wide basis. ETCs in states that mandate their own
state-based Lifeline support should consult the state verification
procedures.

6.  **I am a service provider. Some customers seeking Lifeline and
    Link-Up based on income indicate that they have zero annual income
    on their application. May I reject their applications?**

The Commission has stated its intent to do more to make telephone
service affordable to more low-income households.[^7] Applicants seeking
Lifeline/Link-Up assistance may not understand that for federal default
states, income is defined to include all income actually received by
members of the applicant's household, including public assistance
benefits, social security payments, and unemployment compensation.[^8]

ETCs/service providers should work with applicants in explaining what is
considered income for purposes of Lifeline/Link-Up assistance. In many
cases, applicants receiving public assistance will most likely be able
to qualify based on their participation in the public assistance
programs. We encourage companies to work with applicants to understand
our Lifeline rules. This guidance does not absolve applicants their
responsibility to demonstrate their eligibility when they certify.[^9]

7.  **The Federal poverty guidelines are not defined for Puerto Rico,
    the U.S. Virgin Islands, American Samoa, Guam, the Republic of the
    Marshall Islands, the Federated States of Micronesia, and the
    Commonwealth of the Northern Mariana Islands. What amounts should I
    use to determine whether applicants qualify under an income-based
    approach?**

Territories should use the Federal Poverty Guidelines established for
the contiguous states and the District of Columbia.[^10]

[^1]: *See generally In the Matter of Lifeline and Link-Up*, CC Docket
    96-45, 19 FCC Rcd 8302 (2004) (*Lifeline Order*).

[^2]: *Id.* at 8322, para. 33, and at 8324, para. 37; *Erratum*, DA
    05-262 (Apr. 29, 2004).

[^3]: *Id.* at 8323, para. 35 and 8324, para. 37; *Erratum*, DA 05-262
    (Apr. 29, 2004).

[^4]: *Lifeline Order*, 19 FCC Rcd at 8322, para. 34.

[^5]: *Id.* at 8316-17, para. 22. Under the federal default procedures,
    ETCs that have a reasonable basis to believe that a consumer no
    longer qualifies for Lifeline support are required to notify the
    consumer of the potential termination of Lifeline support before the
    60-day period begins to toll. *Id*.

[^6]: *Id.* at 8322, para. 33, and at 8324, para. 37; *Erratum*, DA
    05-262 (Apr. 29, 2004).

[^7]: *Lifeline Order*, 19 FCC Rcd. at 8302, para. 1.

[^8]: *Id.* at 8308-09, para. 10 and n.31.

[^9]: *See id*. at 8319-21, paras. 28-32.

[^10]: *See id*. at 8311, para. 12. We note that the federal government
    updates the Federal Poverty Guidelines annually.