12952 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 54 

[WC Docket Nos. 11–42, 03–109, 12–23 and 

CC Docket No. 96–45; FCC 12–11] 

Lifeline and Link Up Reform and 

Modernization, Advancing Broadband 

Availability Through Digital Literacy 

Training 

AGENCY: Federal Communications 

Commission. 

ACTION: Final rule. 

SUMMARY: In this document, the Federal 

Communications Commission 

comprehensively reforms and begins to 

modernize the Universal Service Fund’s 

Lifeline program. The reforms adopted 

in this document substantially 

strengthen protections against waste, 

fraud, and abuse; improve program 

administration and accountability; 

improve enrollment and consumer 

disclosures; initiate modernization of 

the program for broadband; and 

constrain the growth of the program in 

order to reduce the burden on all who 

contribute to the Universal Service 

Fund. 

DATES: Effective April 2, 2012, except 

for the amendments to §§ 54.202(a), 

54.401(c), 54.403, 54.407, 54.410, 

54.416, 54.417, 54.420, 54.222 which 

contain information collection 

requirements that are not effective until 

approved by the Office of Management 

and Budget. The Federal 

Communications Commission will 

publish a document in the Federal 

Register announcing the effective date 

for those sections, and except for the 

amendments contained herein to 47 

CFR 54.411, 54.412, 54.413 and 54.414 

which shall become effective April 1, 

2012; and 47 CFR 54.409 which shall 

become effective June 1, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Kimberly Scardino, Wireline 

Competition Bureau, (202) 418–7400 or 

TTY: (202) 418–0484. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Report 

and Order (R&O) in WC Docket Nos. 11– 

42, 03–109, 12–23 and CC Docket No. 

96–45; FCC 12–11, adopted on January 

31, 2012 and released on February 6, 

2012. There was also a companion 

document released with this item. The 

full text of this document is available for 

public inspection during regular 

business hours in the FCC Reference 

Center, Room CY–A257, 445 12th Street 

SW., Washington, DC 20554. Or at the 

following Internet address: http://

transition.fcc.gov/Daily_Releases/Daily_

Business/2012/db0207/FCC-12-

11A1.doc. 

I. Introduction 

1. In this Order, the Commission 

comprehensively reforms and begins to 

modernize the Universal Service Fund’s 

Lifeline program (Lifeline or the 

program). Building on recommendations 

from the Federal-State Joint Board on 

Universal Service (Joint Board), 

proposals in the National Broadband 

Plan, input from the Government 

Accountability Office (GAO), and 

comments received in response to the 

Commission’s March Notice of Proposed 

Rulemaking, the reforms adopted in this 

Order substantially strengthen 

protections against waste, fraud, and 

abuse; improve program administration 

and accountability; improve enrollment 

and consumer disclosures; initiate 

modernization of the program for 

broadband; and constrain the growth of 

the program in order to reduce the 

burden on all who contribute to the 

Universal Service Fund (USF or the 

Fund). We take these significant actions, 

while ensuring that eligible low-income 

consumers who do not have the means 

to pay for telephone service can 

maintain their current voice service 

through the Lifeline program and those 

who are not currently connected to the 

networks will have the opportunity to 

benefit from this program and the 

numerous opportunities and security 

that telephone service affords. 

2. This Order is another step in the 

Commission’s ongoing efforts to 

overhaul all USF programs to promote 

the availability of modern networks and 

the capability of all American 

consumers to access and use those 

networks. Consistent with previous 

efforts, we act here to eliminate waste 

and inefficiency, increase 

accountability, and transition the Fund 

from supporting standalone telephone 

service to broadband. In June 2011, the 

Commission adopted the Duplicative 

Program Payments Order, 76 FR 38040, 

June 29, 2011, which made clear that an 

eligible consumer may only receive one 

Lifeline-supported service, established 

procedures to detect and de-enroll 

subscribers receiving duplicative 

Lifeline-supported services, and 

directed the Universal Service 

Administrative Company (USAC) to 

implement a process to detect and 

eliminate duplicative Lifeline support— 

a process now completed in 12 states 

and expanding to other states in the 

near future. Building on those efforts, 

the unprecedented reforms adopted in 

today’s Order could save the Fund up to 

an estimated $2 billion over the next 

three years, keeping money in the 

pockets of American consumers that 

otherwise would have been wasted on 

duplicative benefits, subsidies for 

ineligible consumers, or fraudulent 

misuse of Lifeline funds. 

3. These savings will reduce growth 

in the Fund, while providing telephone 

service to consumers who remain 

disconnected from the voice networks of 

the twentieth century. Moreover, by 

using a fraction of the savings from 

eliminating waste and abuse in the 

program to create a broadband pilot 

program, we explore how Lifeline can 

best be used to help low-income 

consumers access the networks of the 

twenty-first century by closing the 

broadband adoption gap. This 

complements the recent USF/ICC 

Transformation Order, 76 FR 76623, 

December 8, 2011, which reoriented 

intercarrier compensation and the highcost fund toward increasing the 

availability of broadband networks, as 

well as the recently launched ‘‘Connect 

to Compete’’ private-sector initiative to 

increase access to affordable broadband 

service for low-income consumers. 

4. To make the program more 

accountable, the Order establishes clear 

goals and measures and establishes 

national eligibility criteria to allow lowincome consumers to qualify for Lifeline 

based on either income or participation 

in certain government benefit programs. 

The Order adopts rules for Lifeline 

enrollment, including enhanced initial 

and annual certification requirements, 

and confirms the program’s one-perhousehold requirement. The Order 

simplifies Lifeline reimbursement and 

makes it more transparent. The 

Commission adopts a number of reforms 

to eliminate waste, fraud and abuse in 

the program, including creating a 

National Lifeline Accountability 

Database to prevent multiple carriers 

from receiving support for the same 

subscribers; phasing out toll limitation 

service support; eliminating Link Up 

support except for recipients on Tribal 

lands that are served by eligible 

telecommunications carriers (ETCs) that 

participate in both Lifeline and the 

high-cost program; reducing the number 

of ineligible subscribers in the program; 

and imposing independent audit 

requirements on carriers receiving more 

than $5 million in annual support. 

These reforms are estimated to save the 

Fund up to $2 billion over the next 

three years. As part of these reforms we 

establish a savings target of $200 million 

in 2012 versus the program’s status quo 

path in the absence of reform, create a 

mechanism for ensuring that target is 

met, and put the Commission in a 

position to determine the appropriate 

budget for Lifeline in early 2013 after 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12953 

monitoring the impact of today’s 

fundamental overhaul of the program 

and addressing key issues in the Further 

Notice of Proposed Rulemaking 

(FNPRM), including the appropriate 

monthly support amount for the 

program. Using savings from the 

reforms, the Order establishes a 

Broadband Adoption Pilot Program to 

test and determine how Lifeline can best 

be used to increase broadband adoption 

among Lifeline-eligible consumers. We 

also establish an interim base of uniform 

support amount of $9.25 per month for 

non-Tribal subscribers to simplify 

program administration. 

II. Performance Goals & Measures 

5. The Order adopts three 

performance goals for the program: (1) 

Ensure the availability of voice service 

for low-income Americans; (2) ensure 

the availability of broadband service for 

low-income Americans; and (3) 

minimize the contribution burden on 

consumers and businesses. The Order 

adopts measurements for each of the 

goals, while delegating to the Bureau 

authority to resolve implementation 

aspects of such measurements (for 

example, determining how to define 

‘‘low-income’’ and ‘‘next higher’’ for the 

purpose of the measurement). 

III. Voice Services Eligible for Discount 

6. Consistent with the actions taken in 

the CAF Order and Sua Sponte Order on 

Reconsideration, the Order amends the 

definition of ‘‘Lifeline’’ to provide 

support for ‘‘voice telephony service.’’ 

The Order amends the rules to eliminate 

the ‘‘basic local service qualifier’’ that is 

currently part of the definition of 

Lifeline service, but explains that the 

Commission continues to expect 

Lifeline providers to provide service 

that enables consumers to communicate 

with others that live nearby, while 

acknowledging that service plans 

increasingly allow all distance 

communication. The Order declines to 

specify minimum service standards for 

Lifeline service, but states the 

Commission will monitor service levels 

to see if it should adopt standards in the 

future. 

IV. Support Amounts for Voice Services 

7. Today, ETCs are reimbursed for 

Lifeline based on a rather complicated 

tiers structure that is, among other 

things tied to the ILEC Subscriber Line 

Charge. To simplify administration of 

the program and revise the rules to 

reflect the current marketplace in which 

more than half of the support is 

provided to wireless providers that do 

not charge a SLC, the Order adopts an 

interim rate of $9.25 to replace the 

current Tiers 1, 2, and 3, effective April 

1, 2012. The interim support amount 

represents the nationwide average rate 

of reimbursement as of September 2011. 

Tier 4, which provides enhanced 

Lifeline support to residents of Tribal 

lands, remains unchanged. We seek 

further comment on setting appropriate 

permanent support amounts in a 

Further Notice of Proposed Rulemaking. 

V. Consumer Eligibility and Enrollment 

A. Uniform Eligibility Criteria 

8. The Order establishes a uniform 

floor of eligibility for Lifeline based on 

the current federal rules, while allowing 

states to include more permissive 

eligibility criteria. Additionally, the 

Order keeps the current federal income 

standard of 135% or below of the 

federal poverty guidelines. This 

uniformity will simplify program 

administration for USAC and for ETCs 

as well as provide a baseline level of 

program accessibility nationwide. 

B. One-per-Household 

9. The order adopts a one-perhousehold requirement. ‘‘Household’’ is 

defined consistent with the Low-Income 

Home Energy Assistance Program as 

‘‘any individual or group of individuals 

who are living together at the same 

address as one economic unit,’’ with an 

‘‘economic unit’’ defined as ‘‘all adult 

individuals contributing to and sharing 

in the income and expenses of a 

household.’’ The Order permits Lifeline 

support to individuals living in group 

living facilities. The Order adopts 

procedures to enable Lifeline applicants 

to demonstrate when initially enrolling 

in the program that any other Lifeline 

recipients residing at their residential 

address are part of a separate household 

and directs USAC, within 30 days of the 

effective date of the Order, to develop a 

worksheet that will allow low-income 

households sharing an address to 

indicate they are part of a separate 

household. The Order also directs 

USAC, within 30 days of the effective 

date of the Order, to develop print and 

web materials to be posted on USAC’s 

Web site that both USAC and ETCs can 

use to educate consumers about the oneper-household rule (i.e., how to 

determine what persons comprise a 

household). 

C. Determining Consumer Eligibility (At 

Enrollment and Annually Thereafter) 

10. The Order requires all Lifeline 

subscribers to provide certain 

certifications when enrolling in Lifeline 

and annually thereafter. These 

requirements are as follows: 

1. Initial Certification Requirements 

11. The Order requires ETCs (or the 

state administrator, where applicable) to 

check the program-based eligibility of 

new Lifeline subscribers at enrollment 

by accessing available state or federal 

eligibility databases. Where underlying 

program eligibility data cannot be 

accessed, the Order requires new 

Lifeline subscribers to provide 

documentation of program-based 

eligibility, which the entity enrolling 

the subscriber should review (but not 

retain). Similarly, the Order extends the 

current requirement in federal default 

states that new Lifeline subscribers must 

present documentation to qualify for 

Lifeline based on income level to all 

states. The Order adopts additional 

certification requirements to protect the 

program from waste, fraud, and abuse, 

including requiring consumers to certify 

upon enrollment and annually 

thereafter that they are receiving 

support for only one line per household 

(as described above), and requires 

consumers to sign a certification form 

prior to enrolling in the Lifeline 

program. 

2. Annual Re-Certification Requirements 

12. The Order replaces the existing 

annual verification process with a rule 

that requires each Lifeline subscriber 

(both existing subscribers and new 

subscribers) to provide annual selfcertifications attesting to their 

continued eligibility for the program. 

The Order requires all ETCs, to recertify by the end of 2012, all of their 

subscribers claimed on their June FCC 

Form 497 and report the results of this 

annual re-certification process to the 

Commission, USAC and the relevant 

state commission (where the state has 

jurisdiction over the ETC) annually by 

January 31, 2013. Beginning in 2013, 

where ETCs cannot re-certify their 

subscriber by accessing a database, they 

must re-certify them on an annual basis 

or elect to have USAC re-certify them. 

The results of the re-certification 

process must be filed by January 31st 

each year. Where ETCs can access 

underlying state or federal program data 

to confirm a consumer’s ongoing 

eligibility for Lifeline, the Order allows 

them to do so in place of the annual recertification process. The Order adopts 

a rule that consumers that do not 

respond to annual re-certifications must 

be de-enrolled from the program. The 

Order also adopts a rule requiring 

consumers to notify their ETC within 30 

days if the consumer no longer qualifies 

for Lifeline. 

mstockstill on DSK4VPTVN1PROD with RULES3

12954 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

3. ETC Certifications 

13. The Order requires ETCs to make 

certain certifications annually and when 

submitting for reimbursement from the 

program. 

D. Tribal Lifeline Eligibility 

14. The Order clarifies that residents 

of Tribal lands are eligible for Lifeline 

(and Link Up support if served by a high 

cost recipient) based on (1) Income 

level; (2) participation in any Tribalspecific federal assistance program 

identified in the Commission’s rules; or 

(3) participation in any other program 

identified in the Commission’s rules. 

The Order adopts the NPRM proposal to 

add the Food Distribution Program on 

Indian Reservations (FDPIR) to the list 

of programs that confer eligibility. The 

Order establishes a waiver and 

designation process for those Tribal 

communities that are located outside of 

reservations, but can show ties to 

defined Tribal communities, and 

removes the term ‘‘near reservation’’ 

from the Commission’s definition of 

Tribal lands. The Order requires 

residents on Tribal lands to follow the 

same requirements for documentation of 

income and program based eligibility as 

other Lifeline recipients, but clarifies 

that we will continue to allow selfcertification of residence on Tribal 

lands. 

E. Electronic Signature 

15. The Order allows ETCs and state 

agencies to capture a subscriber’s 

signature electronically at sign-up, 

including through the use of interactive 

voice response systems in compliance 

with the requirements of the E-Sign Act 

and the Government Paperwork 

Elimination Act. The E-Sign Act allows 

the use of electronic records to satisfy 

Commission regulations requiring that 

such information be provided in 

writing, if the consumer has 

affirmatively consented to such use and 

has not withdrawn such consent. 

F. Automatic and Coordinated 

Enrollment 

16. The Order encourages states to 

facilitate coordinated enrollment, but 

makes clear that automatic enrollment 

whereby consumers receiving eligible 

benefits are automatically enrolled in a 

particular carrier’s Lifeline program 

without their express consent is not 

permitted because it may increase the 

incidence of duplicative support. 

VI. Reforms To Eliminate Waste, Fraud 

and Abuse 

A. National Lifeline Accountability 

Database 

17. The Order adopts a national 

duplicates database to detect and 

eliminate duplicative Lifeline and Link 

Up support. The Order directs WCB to 

work with USAC and OMD to establish 

and implement the database and 

associated processes. ETCs will be 

required to query the database to 

determine whether a prospective 

subscriber is already receiving Lifeline 

support from another ETC. The order 

directs ETCs to (1) populate the 

database with the necessary information 

to implement these processes and (2) 

query the database for each new 

subscriber prior to receiving 

reimbursement from the fund for that 

subscriber. We seek further comment in 

an FNRPM on how to implement a 

database to check for eligibility. 

B. TLS 

18. The Order clarifies that it does not 

consider a subscriber who has a Lifeline 

calling plan that includes a set number 

of calling minutes available for either 

local or domestic long distance calls to 

have voluntarily elected to receive TLS. 

Therefore, TLS support will not be 

provided to ETCs providing such plans 

effective April 1, 2012. To the extent an 

ETC offers service plans that still charge 

a fee for toll calls that is in addition to 

the per month or per billing cycle price 

for the Lifeline service plan, it must 

provide at no additional cost to the 

consumer the ability to limit or block 

calls that would result in additional 

charge, but the program will no longer 

provide additional support for this 

functionality. Support for TLS will be 

eliminated over two years to mitigate 

the impact of this change. The Order 

establishes a limit on TLS support of 

$3.00 per month per subscriber that will 

be implemented with April 2012 

support payments through the 

remainder of 2012, beginning with April 

2012 disbursements. TLS support will 

be reduced to $2.00 per month per 

subscriber in 2013, and eliminated at 

the beginning of 2014. 

C. Link Up 

19. The Order eliminates Link Up 

support to all ETCs on non-Tribal lands, 

effective April 1, 2012, and limits Link 

Up on Tribal lands to high cost 

recipients deploying infrastructure. 

Marketplace trends indicate that 

Lifeline consumers increasingly have 

service options from ETCs that neither 

draw on Link Up support nor charge the 

consumer a service initiation fee. In 

balancing a number of universal service 

goals with finite resources, we conclude 

that dollars currently spent for Link Up 

can be more effectively spent to improve 

and modernize the Lifeline program. 

D. Subscriber Usage of Customer 

Supported Service 

20. The Order establishes a rule that 

pre-paid ETCs offering service to 

subscribers for free may not seek 

reimbursement for subscribers until the 

subscriber initiates service in the first 

instance. Moreover, subscribers who fail 

to ‘‘use’’ the service (as that term is 

defined in the Order/Rules) within 60 

consecutive days must be de-enrolled by 

the carrier and the duplicates database 

must be updated within one business 

day. Furthermore, pre-paid ETCs must 

inform their subscribers that Lifeline 

services are not transferable, that there 

is a usage requirement to retain the 

benefit, and that subscribers will be 

automatically de-enrolled for non-use. 

E. Minimum Consumer Charge 

21. The Order does not adopt a 

minimum consumer charge in light of 

other W/F/A protections that will be 

implemented to ensure that consumers 

do not abuse the program, but notes that 

this issue could be revisited if the 

measures adopted fail to address the 

issues that currently exist. Further, the 

Order eliminates the current rule that 

imposes a $1 minimum local charge on 

Tribal subscribers. 

F. Outreach and Marketing 

22. Within six months from the 

Order’s effective date, ETCs must 

include in plain, easy-to-understand 

language in all of their Lifeline 

marketing materials (including print, 

internet, audio and video), that the 

offering is a Lifeline-supported service; 

Lifeline is a government assistance 

program; only eligible consumers may 

enroll in the program; what 

documentation is necessary for 

enrollment; the program is limited to 

one benefit per household, consisting of 

either wireline or wireless service; and 

consumers who willfully make false 

statements in order to obtain program 

benefits can be punished with a fine or 

imprisonment or barred from the 

program. Additionally, the Order 

requires ETCs to disclose the company 

name under which it does business and 

the details of its Lifeline service 

offerings in its Lifeline-related 

marketing and advertising. The Order 

does not adopt mandatory outreach 

requirements but directs the Wireline 

Competition and Consumer and 

Governmental Affairs Bureau to conduct 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12955 

an outreach campaign regarding the new 

program rules. 

G. Audits and Enforcement 

23. The order requires USAC to revise 

its existing oversight program (the 

Beneficiary Compliance Audit and 

Payment Quality Assurance programs) 

in light of the new rules. It also adopts 

a new first-year audit requirement for 

newly designated ETCs whereby they 

would be audited by USAC within their 

first year of providing service. The order 

also adopts a rule that ETCs drawing 

more than $5 million, at the holding 

company level, from the low-income 

program must conduct biennial 

independent audits and submit the 

audit reports to the Commission, USAC, 

and appropriate state commission. The 

Order requires ETCs to report to USAC 

their ownership information, including 

affiliates and holding companies, which 

is necessary to implement this new 

audit requirement. ETCs are put on 

notice that findings concerning 

improper payment of funds may result 

in recapture of those payments under 

the Improper Payments Elimination and 

Recovery Act (IPERA) and related Office 

of Management and Budget 

implementation guidelines and/or 

revocation of ETC designation. 

VII. Payment of Low-Income Support 

24. The order adopts a three-month 

transition for low-income support to be 

disbursed based on actual support in 

place of the current administrative 

process of paying low-income support 

based on projected service. The Order 

accelerates USAC’s payment of lowincome support for carriers filing the 

FCC Form 497 electronically by a 

monthly deadline. The window by 

which carriers must file revisions or 

original FCC Form 497s is reduced from 

fifteen months from the end of a 

calendar year, to a rolling twelve-month 

window. 

VIII. Modernizing the Program 

A. Bundled Services 

25. The Order adopts a rule 

permitting ETCs in all states to allow 

qualifying low-income consumers to 

apply Lifeline discounts to all 

residential service plans that provide 

voice telephony service, including 

bundled service packages combining 

voice and broadband, or packages 

containing optional calling features. 

ETCs will be required to apply partial 

subscriber payments to the cost of the 

Lifeline voice component of a package 

before paying down any additional 

services, and must notify Lifeline 

consumers of this rule in writing. In a 

Further Notice, described below, we 

seek further comment on whether to 

adopt a rule mandating that ETCs offer 

Lifeline discounts on all bundled 

service packages and packages with 

optional calling features. 

B. Broadband Pilot 

26. The Order establishes a broadband 

pilot program aimed at generating 

statistically significant data that will 

allow the Commission, ETCs, and the 

public to analyze the effectiveness of 

different approaches to using Lifeline 

funds to making broadband more 

affordable for low-income Americans 

while providing support that is 

sufficient but not excessive. The 

broadband pilot program will be funded 

with some of the savings from the 

duplicate resolution process. 

C. Managing the Size of the Low Income 

Fund 

27. The Order sets a savings target of 

$200 million for 2012. The Bureau shall 

provide to each Commissioner an 

interim report no later than six months 

from the adoption of the Order 

analyzing the reforms’ progress in 

meeting the savings target. Not later 

than one year after the adoption of the 

Order, the Bureau shall provide to each 

Commissioner a report as to whether the 

reforms have succeeded in meeting the 

savings target; and, if they have not, 

analyzing the causes, providing options 

for realizing those savings, and making 

specific recommendations for corrective 

action to realize those savings. Both 

reports shall be made available for 

public input on the Commission’s Web 

site. 

IX. Eligible Telecommunications 

Carrier Requirements 

A. Facilities-Based Requirements for 

Lifeline-Only ETCs 

28. The Commission forbears from 

applying the Act’s facilities requirement 

of section 214(e)(1)(A) to all 

telecommunications carriers that seek 

limited ETC designation to participate 

in the Lifeline program, subject to 

certain conditions. Specifically, each 

carrier must (i) comply with certain 911 

requirements; and (ii) file, subject to 

Bureau approval, a compliance plan 

providing specific information regarding 

the carrier’s service offerings and 

outlining the measures the carrier will 

take to implement the obligations 

contained in this Order. To avoid 

disruption to subscribers served by 

existing Lifeline-only ETCs that 

previously received forbearance in those 

states where they were designated prior 

to December 29, 2011, those ETCs can 

continue to receive reimbursement in 

those states pending approval of their 

compliance plan, provided they submit 

their plan to the Bureau by July 1, 2012. 

Non-facilities-based carriers designated 

after December 29, 2011 will not receive 

reimbursement from the Fund until the 

Bureau approves their compliance 

plans. 

B. Impact of New Rules on Prior 

Forbearance Conditions 

29. To the extent that any of the 

conditions in the prior forbearance 

orders and compliance plans are 

inconsistent with the rules adopted in 

the Order, the newly adopted rules shall 

prevail. However, any carrier whose 

grant of forbearance was conditioned on 

more stringent compliance plans must 

comply with those additional 

obligations as well as the rules adopted 

in the Order. 

C. Additional Rule Amendments 

30. The Order makes several changes 

to the rules regarding Lifeline providers 

to eliminate waste and inefficiency, and 

to increase accountability in the 

program. The Order amends section 

54.202 to clarify that Lifeline-only ETCs 

are not required to submit a five-year 

improvement plan as part of its 

application for designation. Carriers 

seeking to be designated as a Lifelineonly ETC must demonstrate their 

technical and financial capacity to 

provide the supported services. All 

ETCs receiving Lifeline must annually 

report the names and identifiers used by 

the ETC, its holding company, operating 

companies and affiliates. Additonally, 

the Order requires every ETC receiving 

low-income support to annually provide 

to the Commission and USAC general 

information regarding their Lifeline 

plans for voice telephony service offered 

specifically for low-income consumers. 

X. APCC Petition 

31. The Order denies a petition for 

rulemaking and a petition for interim 

relief by the American Public 

Communications Council to subsidize 

the payphone industry through Lifeline. 

XI. Procedural Matters 

A. Paperwork Reduction Act Analysis 

32. This Report and Order contains 

new information collection 

requirements subject to the Paperwork 

Reduction Act of 1995 (PRA), Public 

Law 104–13. The new requirements will 

be submitted to the Office of 

Management and Budget (OMB) for 

review under section 3507(d) of the 

PRA. OMB, the general public, and 

other Federal agencies are invited to 

comment on the new or modified 

mstockstill on DSK4VPTVN1PROD with RULES3

12956 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

information collection requirements 

contained in this proceeding. In 

addition, we note that pursuant to the 

Small Business Paperwork Relief Act of 

2002, Public Law 107–198, see 44 U.S.C. 

3506(c)(4), we previously sought 

specific comment on how the 

Commission might further reduce the 

information collection burden for small 

business concerns with fewer than 25 

employees. We describe the impacts 

that might affect small businesses, 

which include most businesses with 

fewer than 25 employees, in the Final 

Rregulatory Flexibility Analysis below. 

B. Congressional Review Act 

33. The Commission will send a copy 

of this Report and Order to Congress 

and the Government Accountability 

Office pursuant to the Congressional 

Review Act, see 5 U.S.C. 801(a)(1)(A). 

C. Final Regulatory Flexibility Analysis 

34. The Regulatory Flexibility Act 

(RFA) requires that an agency prepare a 

regulatory flexibility analysis for notice 

and comment rulemakings, unless the 

agency certifies that ‘‘the rule will not, 

if promulgated, have a significant 

economic impact on a substantial 

number of small entities.’’ Accordingly, 

we have prepared a Final Regulatory 

Flexibility Analysis concerning the 

possible impact of the rule changes 

contained in this Report and Order on 

small entities. 

35. As required by the Regulatory 

Flexibility Act of 1980, as amended 

(RFA), an Initial Regulatory Flexibility 

Analysis (IRFA) was incorporated in the 

Lifeline and Link Up Reform and 

Modernization Notice of Proposed 

Rulemaking (Lifeline and Link Up 

NPRM), 76 FR 16482, March 23, 2011. 

The Commission sought written public 

comments on the proposals in the 

Lifeline and Link Up NPRM, including 

comment on the IRFA. This present 

Final Regulatory Flexibility Analysis 

(FRFA) conforms to the RFA. 

D. Need for, and Objectives of, the Order 

36. The Commission is required by 

section 254 of the Act to promulgate 

rules to implement the universal service 

provisions of section 254. On May 8, 

1997, the Commission adopted rules 

that reformed its system of universal 

service support mechanisms so that 

universal service is preserved and 

advanced as markets move toward 

competition. Among other programs, the 

Commission adopted a program to 

provide discounts that make basic, local 

telephone service affordable for lowincome consumers. 

37. In this Order, we comprehensively 

reform and begin to modernize the 

Universal Service Fund’s Lifeline 

program (Lifeline or the program). 

Building on recommendations from the 

Federal-State Joint Board on Universal 

Service (‘‘Joint Board’’), proposals in the 

National Broadband Plan, input from 

the Government Accountability Office 

(GAO), and comments received in 

response to the Commission’s March 

Notice of Proposed Rulemaking the 

reforms adopted in this Order 

substantially strengthen protections 

against waste, fraud, and abuse; improve 

program administration and 

accountability; improve enrollment and 

consumer disclosures; initiate 

modernization of the program for 

broadband; and constrain the growth of 

the program in order to reduce the 

burden on all who contribute to the 

Universal Service Fund (USF or the 

Fund). We take these significant actions, 

while ensuring that eligible low-income 

consumers who do not have the means 

to pay for telephone service can 

maintain their current voice service 

through the Lifeline program and those 

who are not currently connected to the 

networks will have the opportunity to 

benefit from this program and the 

numerous opportunities and security 

that telephone service affords. 

38. This Order is another step in the 

Commission’s ongoing efforts to 

overhaul all Universal Service Fund 

programs to fulfill the goals Congress 

gave us to promote the availability of 

modern networks and the capability of 

all American consumers to access and 

use those networks. Consistent with 

previous efforts, we act here to 

eliminate waste and inefficiency, 

increase accountability, and transition 

the Fund from supporting standalone 

telephone service to broadband. In June 

2011, the Commission adopted the 

Duplicative Program Payments Order, 

which made clear that an eligible 

consumer may only receive one 

Lifeline-supported service, established 

procedures to detect and de-enroll 

subscribers receiving duplicative 

Lifeline-supported services, and 

directed USAC to implement a process 

to detect and eliminate duplicative 

Lifeline support—a process now 

completed in 12 states and expanding to 

other states in the near future. Building 

on those efforts, we estimate that the 

unprecedented reforms adopted in 

today’s Order could save the Fund up to 

an estimated $2 billion over the next 

three years, keeping money in the 

pockets of American consumers that 

otherwise would have been wasted on 

duplicative benefits, subsidies for 

ineligible consumers, or fraudulent 

misuse of Lifeline funds. 

39. These savings will reduce growth 

in the Fund but at the same time 

provide telephone service to consumers 

who remain disconnected from the 

voice networks of the Twentieth 

Century. Moreover, by using a fraction 

of the savings from eliminating waste 

and abuse in the program to create a 

broadband pilot program, we explore 

how Lifeline can best be used to help 

low-income consumers access the 

networks of the Twenty-First Century by 

closing the broadband adoption gap. 

This complements the recent USF/ICC 

Transformation Order and FNPRM, 

which reoriented intercarrier 

compensation and the high-cost fund 

toward increasing the availability of 

broadband networks, as well as the 

recently launched ‘‘Connect to 

Compete’’ private-sector initiative to 

increase access to affordable broadband 

service for low-income consumers. 

40. To make the program more 

accountable, the Order establishes clear 

goals and measures and establishes 

national eligibility criteria to allow lowincome consumers to qualify for Lifeline 

based on either income or participation 

in certain government benefit programs. 

The Order adopts rules for Lifeline 

enrollment, including enhanced initial 

and annual certification requirements, 

and confirms the program’s one-perhousehold requirement. The Order 

simplifies Lifeline reimbursement and 

makes it more transparent. The 

Commission adopts a number of reforms 

to eliminate waste, fraud and abuse in 

the program, including creating a 

National Lifeline Accountability 

Database to prevent multiple carriers 

from receiving support for the same 

subscribers; phasing out toll limitation 

service support; eliminating Link Up 

support except for recipients on Tribal 

lands that are served by eligible 

telecommunications carriers (‘‘ETCs’’) 

that participate in both Lifeline and the 

high-cost program; reducing the number 

of ineligible subscribers in the program; 

and imposing independent audit 

requirements on carriers receiving more 

than $5 million in annual support. 

These reforms are expected to save the 

Fund approximately $2 billion over the 

next three years. Using savings from the 

reforms, the Order establishes a 

Broadband Adoption Pilot Program to 

test and determine how Lifeline can best 

be used to increase broadband adoption 

among Lifeline-eligible consumers. We 

also establish an interim base of uniform 

support amount of $9.25 per month for 

non-Tribal subscribers to simplify 

program administration. 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12957 

E. Summary of Significant Issues Raised 

by Public Comments in Response to the 

IRFA 

41. No comments were filed in 

response to the IRFA attached to the 

Lifeline and Link Up NPRM. 

Notwithstanding the foregoing, general 

comments discussing the impact of the 

proposed rules on small business were 

submitted in response to the Lifeline 

and Link Up NPRM. With respect to the 

proposal to provide household 

identifying information as a measure to 

prevent duplicate enrollment, one 

commenter expressed concern that the 

imposition of a data transmission 

requirement would result in new 

training, programming, and 

administrative expenses which would 

be burdensome on small entities. One 

commenter opposed any limitations 

placed on Link Up support arguing that 

such limitations would inhibit small 

ETCs’ ability to participate in the low 

income program. Commenters expressed 

concern that the proposed audit 

requirements in the NPRM would be 

expensive and difficult for small 

companies to comply with. One 

commenter opposed the proposed 

verification proposals in the NPRM 

asserting that such new requirements 

would be unnecessarily expensive and 

disproportionately burden small 

businesses. Commenters opposed the 

proposed sampling methodology to 

confirm eligibility as it would have the 

result of requiring small entities to 

sample most if not all of their Lifeline 

subscribers. Commenters asserted that 

outreach efforts may be unreasonably 

burdensome for small ETCs. In making 

the determinations reflected in the 

Order, we have considered the impact of 

our actions on small entities. 

F. Description and Estimate of the 

Number of Small Entities to Which the 

Proposed Rules Will Apply 

42. The RFA directs agencies to 

provide a description of and, where 

feasible, an estimate of the number of 

small entities that may be affected by 

the proposed rules, if adopted. The RFA 

generally defines the term ‘‘small 

entity’’ as having the same meaning as 

the terms ‘‘small business,’’ ‘‘small 

organization,’’ and ‘‘small governmental 

jurisdiction.’’ In addition, the term 

‘‘small business’’ has the same meaning 

as the term ‘‘small business concern’’ 

under the Small Business Act. A small 

business concern is one that: (1) Is 

independently owned and operated; (2) 

is not dominant in its field of operation; 

and (3) satisfies any additional criteria 

established by the Small Business 

Administration (SBA). Nationwide, 

there are a total of approximately 29.6 

million small businesses, according to 

the SBA. A ‘‘small organization’’ is 

generally ‘‘any not-for-profit enterprise 

which is independently owned and 

operated and is not dominant in its 

field.’’ Nationwide, as of 2002, there 

were approximately 1.6 million small 

organizations. The term ‘‘small 

governmental jurisdiction’’ is defined 

generally as ‘‘governments of cities, 

towns, townships, villages, school 

districts, or special districts, with a 

population of less than fifty thousand.’’ 

Census Bureau data for 2002 indicate 

that there were 87,525 local 

governmental jurisdictions in the 

United States. We estimate that, of this 

total, 84,377 entities were ‘‘small 

governmental jurisdictions.’’ Thus, we 

estimate that most governmental 

jurisdictions are small. 

1. Wireline Providers 

43. Incumbent Local Exchange 

Carriers (Incumbent LECs). Neither the 

Commission nor the SBA has developed 

a small business size standard 

specifically for incumbent local 

exchange services. The appropriate size 

standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. Census Bureau data 

for 2007, which now supersede data 

from the 2002 Census, show that there 

were 3,188 firms in this category that 

operated for the entire year. Of this 

total, 3,144 had employment of 999 or 

fewer and 44 firms had had employment 

of 1000 or more. According to 

Commission data, 1,307 carriers 

reported that they were incumbent local 

exchange service providers. Of these 

1,307 carriers, an estimated 1,006 have 

1,500 or fewer employees and 301 have 

more than 1,500 employees. 

Consequently, the Commission 

estimates that most providers of local 

exchange service are small entities that 

may be affected by the rules and 

policies proposed in the Notice. Thus 

under this category and the associated 

small business size standard, the 

majority of these incumbent local 

exchange service providers can be 

considered small providers. 

44. Competitive Local Exchange 

Carriers (Competitive LECs), 

Competitive Access Providers (CAPs), 

Shared-Tenant Service Providers, and 

Other Local Service Providers. Neither 

the Commission nor the SBA has 

developed a small business size 

standard specifically for these service 

providers. The appropriate size standard 

under SBA rules is for the category 

Wired Telecommunications Carriers. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees. Census Bureau data for 

2007, which now supersede data from 

the 2002 Census, show that there were 

3,188 firms in this category that 

operated for the entire year. Of this 

total, 3,144 had employment of 999 or 

fewer and 44 firms had had employment 

of 1,000 employees or more. Thus under 

this category and the associated small 

business size standard, the majority of 

these Competitive LECs, CAPs, SharedTenant Service Providers, and Other 

Local Service Providers can be 

considered small entities. According to 

Commission data, 1,442 carriers 

reported that they were engaged in the 

provision of either competitive local 

exchange services or competitive access 

provider services. Of these 1,442 

carriers, an estimated 1,256 have 1,500 

or fewer employees and 186 have more 

than 1,500 employees. In addition, 17 

carriers have reported that they are 

Shared-Tenant Service Providers, and 

all 17 are estimated to have 1,500 or 

fewer employees. In addition, 72 

carriers have reported that they are 

Other Local Service Providers. Seventy 

of which have 1,500 or fewer employees 

and two have more than 1,500 

employees. Consequently, the 

Commission estimates that most 

providers of competitive local exchange 

service, competitive access providers, 

Shared-Tenant Service Providers, and 

Other Local Service Providers are small 

entities that may be affected by rules 

adopted pursuant to the Notice. 

45. Interexchange Carriers. Neither 

the Commission nor the SBA has 

developed a small business size 

standard specifically for providers of 

interexchange services. The appropriate 

size standard under SBA rules is for the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. Census Bureau data 

for 2007, which now supersede data 

from the 2002 Census, show that there 

were 3,188 firms in this category that 

operated for the entire year. Of this 

total, 3,144 had employment of 999 or 

fewer, and 44 firms had had 

employment of 1,000 employees or 

more. Thus under this category and the 

associated small business size standard, 

the majority of these Interexchange 

carriers can be considered small 

entities. According to Commission data, 

359 companies reported that their 

primary telecommunications service 

activity was the provision of 

interexchange services. Of these 359 

companies, an estimated 317 have 1,500 

or fewer employees and 42 have more 

mstockstill on DSK4VPTVN1PROD with RULES3

12958 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

than 1,500 employees. Consequently, 

the Commission estimates that the 

majority of interexchange service 

providers are small entities that may be 

affected by rules adopted pursuant to 

the Notice. 

46. Operator Service Providers (OSPs). 

Neither the Commission nor the SBA 

has developed a small business size 

standard specifically for operator 

service providers. The appropriate size 

standard under SBA rules is the 

category Wired Telecommunications 

Carriers. Under that size standard, such 

a business is small if it has 1,500 or 

fewer employees. Under that size 

standard, such a business is small if it 

has 1,500 or fewer employees. Census 

Bureau data for 2007, which now 

supersede 2002 Census data, show that 

there were 3,188 firms in this category 

that operated for the entire year. Of the 

total, 3,144 had employment of 999 or 

fewer, and 44 firms had had 

employment of 1,000 employees or 

more. Thus under this category and the 

associated small business size standard, 

the majority of these interexchange 

carriers can be considered small 

entities. According to Commission data, 

33 carriers have reported that they are 

engaged in the provision of operator 

services. Of these, an estimated 31 have 

1,500 or fewer employees and 2 have 

more than 1,500 employees. 

Consequently, the Commission 

estimates that the majority of OSPs are 

small entities that may be affected by 

our proposed action. 

47. Local Resellers. The SBA has 

developed a small business size 

standard for the category of 

Telecommunications Resellers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer employees. 

Census data for 2007 show that 1,523 

firms provided resale services during 

that year. Of that number, 1,522 

operated with fewer than 1000 

employees and one operated with more 

than 1,000. Thus under this category 

and the associated small business size 

standard, the majority of these local 

resellers can be considered small 

entities. According to Commission data, 

213 carriers have reported that they are 

engaged in the provision of local resale 

services. Of these, an estimated 211 

have 1,500 or fewer employees and two 

have more than 1,500 employees. 

Consequently, the Commission 

estimates that the majority of local 

resellers are small entities that may be 

affected by rules adopted pursuant to 

the Notice. 

48. Toll Resellers. The SBA has 

developed a small business size 

standard for the category of 

Telecommunications Resellers. Under 

that size standard, such a business is 

small if it has 1,500 or fewer employees. 

Census data for 2007 show that 1,523 

firms provided resale services during 

that year. Of that number, 1,522 

operated with fewer than 1000 

employees and one operated with more 

than 1,000. Thus under this category 

and the associated small business size 

standard, the majority of these resellers 

can be considered small entities. 

According to Commission data, 881 

carriers have reported that they are 

engaged in the provision of toll resale 

services. Of these, an estimated 857 

have 1,500 or fewer employees and 24 

have more than 1,500 employees. 

Consequently, the Commission 

estimates that the majority of toll 

resellers are small entities that may be 

affected by our action. 

49. Pre-paid Calling Card Providers. 

Neither the Commission nor the SBA 

has developed a small business size 

standard specifically for pre-paid calling 

card providers. The appropriate size 

standard under SBA rules is for the 

category Telecommunications Resellers. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees. Census data for 2007 show 

that 1,523 firms provided resale services 

during that year. Of that number, 1,522 

operated with fewer than 1000 

employees and one operated with more 

than 1,000. Thus under this category 

and the associated small business size 

standard, the majority of these pre-paid 

calling card providers can be considered 

small entities. According to Commission 

data, 193 carriers have reported that 

they are engaged in the provision of prepaid calling cards. Of these, an 

estimated all 193 have 1,500 or fewer 

employees and none have more than 

1,500 employees. Consequently, the 

Commission estimates that the majority 

of pre-paid calling card providers are 

small entities that may be affected by 

rules adopted pursuant to the Notice. 

50. 800 and 800-Like Service 

Subscribers. Neither the Commission 

nor the SBA has developed a small 

business size standard specifically for 

800 and 800-like service (‘‘toll free’’) 

subscribers. The appropriate size 

standard under SBA rules is for the 

category Telecommunications Resellers. 

Under that size standard, such a 

business is small if it has 1,500 or fewer 

employees. Census data for 2007 show 

that 1,523 firms provided resale services 

during that year. Of that number, 1,522 

operated with fewer than 1,000 

employees and one operated with more 

than 1,000. Thus under this category 

and the associated small business size 

standard, the majority of resellers in this 

classification can be considered small 

entities. To focus specifically on the 

number of subscribers than on those 

firms which make subscription service 

available, the most reliable source of 

information regarding the number of 

these service subscribers appears to be 

data the Commission collects on the 

800, 888, 877, and 866 numbers in use. 

According to our data, as of September 

2009, the number of 800 numbers 

assigned was 7,860,000; the number of 

888 numbers assigned was 5,888,687; 

the number of 877 numbers assigned 

was 4,721,866; and the number of 866 

numbers assigned was 7,867,736. The 

Commission does not have data 

specifying the number of these 

subscribers that are not independently 

owned and operated or have more than 

1,500 employees, and thus are unable at 

this time to estimate with greater 

precision the number of toll free 

subscribers that would qualify as small 

businesses under the SBA size standard. 

Consequently, the Commission 

estimates that there are 7,860,000 or 

fewer small entity 800 subscribers; 

5,888,687 or fewer small entity 888 

subscribers; 4,721,866 or fewer small 

entity 877 subscribers; and 7,867,736 or 

fewer small entity 866 subscribers. We 

do not believe 800 and 800-Like Service 

Subscribers will be effected by our 

proposed rules, however we choose to 

include this category and seek comment 

on whether there will be an effect on 

small entities within this category. 

2. Wireless Carriers and Service 

Providers 

51. Below, for those services subject 

to auctions, the Commission notes that, 

as a general matter, the number of 

winning bidders that qualify as small 

businesses at the close of an auction 

does not necessarily represent the 

number of small businesses currently in 

service. Also, the Commission does not 

generally track subsequent business size 

unless, in the context of assignments or 

transfers, unjust enrichment issues are 

implicated. 

52. Wireless Telecommunications 

Carriers (except Satellite). Since 2007, 

the Census Bureau has placed wireless 

firms within this new, broad, economic 

census category. Prior to that time, such 

firms were within the now-superseded 

categories of ‘‘Paging’’ and ‘‘Cellular and 

Other Wireless Telecommunications.’’ 

Under the present and prior categories, 

the SBA has deemed a wireless business 

to be small if it has 1,500 or fewer 

employees. For the category of Wireless 

Telecommunications Carriers (except 

Satellite), Census data for 2007, which 

supersede data contained in the 2002 

Census, show that there were 1,383 

firms that operated that year. Of those 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12959 

1,383, 1,368 had fewer than 100 

employees, and 15 firms had more than 

100 employees. Thus under this 

category and the associated small 

business size standard, the majority of 

firms can be considered small. 

Similarly, according to Commission 

data, 413 carriers reported that they 

were engaged in the provision of 

wireless telephony, including cellular 

service, Personal Communications 

Service (PCS), and Specialized Mobile 

Radio (SMR) Telephony services. Of 

these, an estimated 261 have 1,500 or 

fewer employees and 152 have more 

than 1,500 employees. Consequently, 

the Commission estimates that 

approximately half or more of these 

firms can be considered small. Thus, 

using available data, we estimate that 

the majority of wireless firms can be 

considered small. 

53. Wireless Communications 

Services. This service can be used for 

fixed, mobile, radiolocation, and digital 

audio broadcasting satellite uses. The 

Commission defined ‘‘small business’’ 

for the wireless communications 

services (WCS) auction as an entity with 

average gross revenues of $40 million 

for each of the three preceding years, 

and a ‘‘very small business’’ as an entity 

with average gross revenues of $15 

million for each of the three preceding 

years. The SBA has approved these 

definitions. The Commission auctioned 

geographic area licenses in the WCS 

service. In the auction, which 

commenced on April 15, 1997 and 

closed on April 25, 1997, seven bidders 

won 31 licenses that qualified as very 

small business entities, and one bidder 

won one license that qualified as a small 

business entity. 

54. Satellite Telecommunications 

Providers. Two economic census 

categories address the satellite industry. 

The first category has a small business 

size standard of $15 million or less in 

average annual receipts, under SBA 

rules. The second has a size standard of 

$25 million or less in annual receipts. 

55. The category of Satellite 

Telecommunications ‘‘comprises 

establishments primarily engaged in 

providing telecommunications services 

to other establishments in the 

telecommunications and broadcasting 

industries by forwarding and receiving 

communications signals via a system of 

satellites or reselling satellite 

telecommunications.’’ Census Bureau 

data for 2007 show that 512 Satellite 

Telecommunications firms that operated 

for that entire year. Of this total, 464 

firms had annual receipts of under $10 

million, and 18 firms had receipts of 

$10 million to $24,999,999. 

Consequently, the Commission 

estimates that the majority of Satellite 

Telecommunications firms are small 

entities that might be affected by our 

action. 

56. The second category, i.e. ‘‘All 

Other Telecommunications’’ comprises 

‘‘establishments primarily engaged in 

providing specialized 

telecommunications services, such as 

satellite tracking, communications 

telemetry, and radar station operation. 

This industry also includes 

establishments primarily engaged in 

providing satellite terminal stations and 

associated facilities connected with one 

or more terrestrial systems and capable 

of transmitting telecommunications to, 

and receiving telecommunications from, 

satellite systems. Establishments 

providing Internet services or voice over 

Internet protocol (VoIP) services via 

client-supplied telecommunications 

connections are also included in this 

industry.’’ For this category, Census 

Bureau data for 2007 show that there 

were a total of 2,383 firms that operated 

for the entire year. Of this total, 2,347 

firms had annual receipts of under $25 

million and 12 firms had annual 

receipts of $25 million to $49,999,999. 

Consequently, the Commission 

estimates that the majority of All Other 

Telecommunications firms are small 

entities that might be affected by our 

action. 

57. Common Carrier Paging. The SBA 

considers paging to be a wireless 

telecommunications service and 

classifies it under the industry 

classification Wireless 

Telecommunications Carriers (except 

satellite). Under that classification, the 

applicable size standard is that a 

business is small if it has 1,500 or fewer 

employees. For the general category of 

Wireless Telecommunications Carriers 

(except Satellite), Census data for 2007, 

which supersede data contained in the 

2002 Census, show that there were 

1,383 firms that operated that year. Of 

those 1,383, 1,368 had fewer than 100 

employees, and 15 firms had more than 

100 employees. Thus under this 

category and the associated small 

business size standard, the majority of 

firms can be considered small. The 2007 

census also contains data for the 

specific category of ‘‘Paging’’ ‘‘that is 

classified under the seven-number 

North American Industry Classification 

System (NAICS) code 5172101. 

According to Commission data, 291 

carriers have reported that they are 

engaged in Paging or Messaging Service. 

Of these, an estimated 289 have 1,500 or 

fewer employees, and 2 have more than 

1,500 employees. Consequently, the 

Commission estimates that the majority 

of paging providers are small entities 

that may be affected by our action. In 

addition, in the Paging Third Report and 

Order, the Commission developed a 

small business size standard for ‘‘small 

businesses’’ and ‘‘very small 

businesses’’ for purposes of determining 

their eligibility for special provisions 

such as bidding credits and installment 

payments. A ‘‘small business’’ is an 

entity that, together with its affiliates 

and controlling principals, has average 

gross revenues not exceeding $15 

million for the preceding three years. 

Additionally, a ‘‘very small business’’ is 

an entity that, together with its affiliates 

and controlling principals, has average 

gross revenues that are not more than $3 

million for the preceding three years. 

The SBA has approved these small 

business size standards. An auction of 

Metropolitan Economic Area licenses 

commenced on February 24, 2000, and 

closed on March 2, 2000. Of the 985 

licenses auctioned, 440 were sold. Fiftyseven companies claiming small 

business status won. 

58. Wireless Telephony. Wireless 

telephony includes cellular, personal 

communications services, and 

specialized mobile radio telephony 

carriers. As noted, the SBA has 

developed a small business size 

standard for Wireless 

Telecommunications Carriers (except 

Satellite). Under the SBA small business 

size standard, a business is small if it 

has 1,500 or fewer employees. 

According to the 2008 Trends Report, 

434 carriers reported that they were 

engaged in wireless telephony. Of these, 

an estimated 222 have 1,500 or fewer 

employees and 212 have more than 

1,500 employees. We have estimated 

that 222 of these are small under the 

SBA small business size standard. 

3. Internet Service Providers 

59. The 2007 Economic Census places 

these firms, whose services might 

include voice over Internet protocol 

(VoIP), in either of two categories, 

depending on whether the service is 

provided over the provider’s own 

telecommunications facilities (e.g., cable 

and DSL ISPs), or over client-supplied 

telecommunications connections (e.g., 

dial-up ISPs). The former are within the 

category of Wired Telecommunications 

Carriers, which has an SBA small 

business size standard of 1,500 or fewer 

employees. The latter are within the 

category of All Other 

Telecommunications, which has a size 

standard of annual receipts of $25 

million or less. The most current Census 

Bureau data for all such firms, however, 

are the 2002 data for the previous 

census category called Internet Service 

Providers. That category had a small 

mstockstill on DSK4VPTVN1PROD with RULES3

12960 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

business size standard of $21 million or 

less in annual receipts, which was 

revised in late 2005 to $23 million. The 

2002 data show that there were 2,529 

such firms that operated for the entire 

year. Of those, 2,437 firms had annual 

receipts of under $10 million, and an 

additional 47 firms had receipts of 

between $10 million and $24,999,999. 

Consequently, we estimate that the 

majority of ISP firms are small entities. 

60. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in developing its 

approach, which may include the 

following four alternatives (among 

others): ‘‘(1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance or reporting requirements 

under the rule for such small entities; 

(3) the use of performance rather than 

design standards; and (4) an exemption 

from coverage of the rule, or any part 

thereof, for small entities.’’ 

G. Description of Projected Reporting, 

Recordkeeping, and Other Compliance 

Requirements 

61. Support Amounts for Voice 

Service. In the Order, we adopt an 

interim rate of reimbursement for 

Lifeline in lieu of the prior tiered 

system. The tiered system was tied to 

the subscriber line charge (SLC), which 

we find to be an imprecise basis for 

Lifeline support given the myriad 

changes in the telecommunications 

marketplace. This interim monthly rate 

is set at $9.25 per subscriber. This 

interim support amount was determined 

by calculating the average level of 

support from the most recent 

disbursement data available. Because 

the interim support amount is an 

average, some ETCs will receive more 

monthly support while others receive 

less—regardless of size. While there 

may be a slightly negative economic 

impact on some small entities, such an 

impact will be felt by all entities 

currently receiving more than $9.25 per 

month per subscriber in Lifeline 

support, not just small entities. 

However, as with our adoption of 

uniform consumer eligibility rules, this 

uniform interim support amount will 

simplify program administration by 

ETCs operating across different SLCs. 

62. Uniform Eligibility Criteria. As 

part of the Commission’s effort to 

streamline the program, the Commission 

adopts a uniform set of consumer 

eligibility requirements throughout the 

nation. This rule alleviates some of the 

administrative burdens on ETCs 

operating in multiple states caused by 

varying consumer eligibility 

requirements. We anticipate that this 

new rule will significantly simplify 

program administration by ETCs, 

resulting in greater program efficiencies. 

Given that we permit states to adopt 

more permissive Lifeline eligibility 

criteria on top of the base of federal 

Lifeline eligibility criteria, no ETCs will 

face a smaller Lifeline subscriber base 

because of the change in eligibility 

criteria. We expect no economic impact 

on entities through the adoption of the 

federal eligibility criteria across all 

states. 

63. One-per-Household. First, the 

Order adopts a one-per-household 

requirement. ‘‘Household’’ is defined 

consistent with the Low-Income Home 

Energy Assistance Program as ‘‘any 

individual or group of individuals who 

are living together at the same address 

as one economic unit,’’ with an 

‘‘economic unit’’ defined as ‘‘all 

individuals contributing to and sharing 

in the income and expenses of a 

household’’ (which would include 

persons with no income who benefit 

from another person’s financial 

support). Second, the Order adopts 

procedures to enable Lifeline applicants 

to demonstrate when initially enrolling 

in the program that any other Lifeline 

recipients residing at their residential 

address are part of a separate household 

and directs USAC, within 30 days of the 

effective date of the Order, to develop a 

form that will allow low-income 

households sharing an address to 

indicate they are part of a separate 

household. Third, the Order also directs 

USAC, within 30 days of the effective 

date of the Order, to develop print and 

web materials to be posted on USAC’s 

Web site that both USAC and ETCs can 

use to educate consumers about the oneper-household rule (i.e., how to 

determine what persons comprise a 

household). USAC will prepare 

materials that the ETCs can rely on to 

educate their subscribers about the 

one-per-household requirement. 

64. We estimate that these rules will 

have a minimal economic impact. While 

the rules will require eligible 

telecommunications carriers to obtain 

information from a limited number of 

consumers about their household 

arrangements, it will only impact those 

low-income consumers who reside in 

group living facilities or at addresses 

shared by multiple households. This 

information will be collected using a 

worksheet to be designed and provided 

to the ETCs by USAC. This information 

is necessary to assist qualifying 

consumers relying on addresses shared 

by multiple households to obtain 

Lifeline service and to document their 

compliance with the one-per-household 

rule. Additionally, USAC will develop 

print and web materials that ETCs can 

use to educate consumers about the oneper-household rule. We do not expect 

these requirements to have a 

disproportionate impact on carriers, 

including those that are small entities. 

65. Certification of Consumer 

Eligibility. First, the Order amends 

§ 54.410 of the Commission’s rules to 

require all Lifeline subscribers to 

provide certain certifications pertaining 

to their eligibility for Lifeline upon 

initial program enrollment and annually 

thereafter. Depending on the state, 

certifications should be collected from 

consumers by carriers or the state 

Lifeline administrator or a state agency. 

66. Carriers and states (where 

applicable) may need to update their 

existing certification forms to comply 

with the requirements of § 54.410, as 

amended. Carriers already collect 

several similar certifications from 

Lifeline subscribers at enrollment; thus, 

we expect that the costs of compliance 

with the amended rule will be 

marginally larger. Therefore, we 

anticipate that the effect of this rule will 

have minimal economic impact. Carriers 

and states (where applicable) may 

choose to use their existing certification 

forms so long as those forms are 

updated to comply with the new 

certification rules. We also provide in 

the Order that the new certification 

rules will not go into effect until June 

1, 2012, which will give carriers (both 

large and small) time to make any 

needed system updates. We also expect 

to recover cost savings to the program 

based on the reduction of ineligible 

consumers stemming from the updated 

certification requirements. We do not 

expect that this rule will 

disproportionately impact small 

entities. 

67. Second, the Order requires ETCs 

(or the state administrator, where 

applicable) to check the eligibility of 

new Lifeline subscribers at enrollment 

by accessing available state or federal 

eligibility databases. Where underlying 

eligibility data cannot be accessed 

through a database, the Order requires 

new Lifeline subscribers to provide 

documentation of program-based 

eligibility or income-based eligibility, 

which the entity enrolling the 

subscriber should review (but not 

retain). We acknowledge that 

compliance with the rule we adopt here 

will involve some administrative costs 

for ETCs, for example, modifying their 

internal processes and systems to 

comply with the new documentation 

requirement. However, we do not expect 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12961 

these costs to have a significant 

economic impact especially since we 

limit this requirement to new customers 

rather than requiring ETCs to re-verify 

all of their subscribers by obtaining 

documentary proof of eligibility. We do 

not expect these costs to be 

disproportionately large for small 

carriers. We also conclude that those 

costs are outweighed by the significant 

benefits gained by protecting the Fund 

from waste, fraud, and abuse. We 

estimate in the Order that up to 15 

percent of current Lifeline subscribers 

may be ineligible for the program, 

potentially representing as much as 

$375 million of support per year. We 

expect that a rule requiring ETCs to 

obtain documentation of program 

participation from new Lifeline 

applicants, in conjunction with our 

efforts to implement a Lifeline database, 

will enable the Commission to recapture 

those funds and prevent unbridled 

future growth in the Fund. The resulting 

cost savings will in turn benefit those 

consumers who contribute to the 

Universal Service Fund, new qualifying 

low-income consumers, and our goal to 

modernize the program for a broadband 

future. Further, while we will require 

consumers to provide documentation of 

program- and income-eligibility to ETCs 

at enrollment, consumers will no longer 

be required to provide such 

documentation as part of the annual 

verification process in federal default 

states. Moreover, consumers will not 

need to demonstrate eligibility at 

enrollment (or annually) once that 

function is addressed through a 

database. Lastly, we give ETCs until 

June 1, 2012, to implement processes to 

document consumer eligibility for 

Lifeline. We expect that these changes 

will reduce the burdens on both 

consumers and ETCs. 

68. Third, the Order requires ETCs to 

make certain certifications annually and 

when submitting for reimbursement 

from the program. The Commission 

currently directs ETCs to make certain 

certifications relating to the Lifeline 

program. Section 54.410 of the 

Commission’s rules, as modified, does 

not substantially change those 

requirements; rather, the Commission 

adds additional certifications that the 

ETC must make annually and when 

seeking reimbursement from the Fund. 

USAC and the Commission have jointly 

developed the certification language and 

the forms. Thus, carriers need only 

make the necessary internal inquiries 

(e.g., ensure that they have received a 

signed certification form from each 

Lifeline subscriber) and sign the forms 

as provided to them by USAC. We do 

not expect that this requirement will 

have an adverse financial impact on 

small entities. 

69. Fourth, we replace the existing 

process used by ETCs and states to 

verify ongoing consumer eligibility for 

Lifeline with a uniform rule requiring 

all ETCs (or states, where applicable) to 

re-certify the eligibility of their 

complete Lifeline subscriber base as of 

June 1, 2012. By the end of 2012, all 

ETCs (or states, where applicable) must 

obtain from each Lifeline subscriber a 

re-certification form that contains each 

of the required certifications listed in 

§ 54.410, as amended, and report those 

results to USAC, the Commission, states 

(where the state has jurisdiction over 

the carrier), and Tribal governments 

(where applicable). Alternatively, in 

states where a state agency or a third 

party has implemented a database that 

carriers may query to re-certify the 

consumer’s continued eligibility, the 

carrier (or state agency or third-party, 

where applicable) must instead query 

the database by the end of 2012 and 

maintain a record of what specific data 

was used to re-certify eligibility and the 

date of re-certification. 

70. We have taken steps in 

implementing this rule to minimize the 

impact on carriers and states performing 

the re-certification function. This recertification may be done on a rolling 

basis throughout the year, at the ETC’s 

election. ETCs (or states, where 

applicable) may re-certify the continued 

eligibility of an ETC’s Lifeline 

subscribers by contacting them—which 

can be done in any of a number of ways, 

including in person, in writing, by 

phone, by text message, by email, or 

otherwise through the Internet—to 

confirm their continued eligibility for 

Lifeline. As noted above, where 

available, ETCs and states will access 

electronic eligibility data rather than 

contact each subscriber to obtain an 

individual re-certification. Lastly, after 

2012, ETCs may elect to have USAC 

administer the self-certification process 

on their behalf. We do not expect the 

costs of re-certification to 

disproportionately burden small 

entities, who will have a lesser number 

of subscribers to contact and may opt to 

use less costly means (such as text 

message or email) to contact their 

subscribers for re-certification. 

71. Tribal Lifeline Eligibility. First, the 

Order clarifies that residents of Tribal 

lands are eligible for Lifeline (and Link 

Up support if served by a high cost 

recipient) based on (1) income level; (2) 

participation in any Tribal-specific 

federal assistance program identified in 

the Commission’s rules; or (3) 

participation in any other program 

identified in the Commission’s rules. 

We do not expect that this clarification 

will have any financial impact, 

including on small businesses, as it does 

not change existing program rules, but 

rather removes any ambiguity in the 

interpretation of those rules by carriers 

and consumers. 

72. Second, the Order adopts the 

NPRM proposal to add the Food 

Distribution Program on Indian 

Reservations (FDPIR) to the list of 

programs that confer eligibility. We 

expect this rule change to have only 

minimal financial impact. For example, 

carriers serving eligible residents of 

Tribal lands will need to update their 

certification/enrollment forms to add 

FDPIR to their list of qualifying 

programs. However, the benefit that will 

accrue to eligible residents of Tribal 

lands participating in FDPIR will 

outweigh the burdens to carriers. We do 

not expect this rule to have a 

disproportionate impact on small 

entities, for whom the cost of 

compliance would be the same as for 

other carriers. 

73. Third, the Order establishes a 

waiver and designation process for 

those Tribal communities that are 

located outside of reservations, but can 

show ties to defined Tribal 

communities, and removes the term 

‘‘near reservation’’ from the 

Commission’s definition of Tribal lands. 

We do not expect this rule to have any 

financial impact, including on small 

entities, as carriers will not have any 

role in the designation process. 

74. Fourth, the Order clarifies that we 

will continue to allow self-certification 

of residence on Tribal lands. We do not 

expect this rule to have any economic 

impact on any entities, as it clarifies, 

rather than changes, existing program 

rules. 

75. Electronic Signatures and 

Interactive Voice Response Systems. In 

the Order, the Commission clarifies that 

ETCs may use electronic signatures and 

interactive voice response systems to 

obtain Lifeline subscriber certifications, 

provided the electronic signatures are 

obtained in accordance with the 

requirements of the E–SIGN Act. We 

expect no negative economic impact 

from this clarification because this 

clarification makes obtaining subscriber 

signatures easier for all ETCs. 

76. National Accountability Database. 

The Order established a national 

accountability database to reduce the 

likelihood that a consumer or household 

will receive more than one subsidized 

service through the low-income 

program. The Order directs the Bureau 

to work with USAC and OMB to 

establish and implement the database 

mstockstill on DSK4VPTVN1PROD with RULES3

12962 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

and associated processes. The Order 

directs ETCs to (1) populate the 

database with the necessary subscriber 

information to implement these 

processes and (2) query the database for 

each new subscriber prior to receiving 

reimbursement from the fund for that 

subscriber. ETCs may have to collect 

customer information which is not 

currently in their possession to populate 

the database. 

77. While the database imposes an 

economic impact on carriers to populate 

the database, and potentially interface 

with the database, the entire system will 

be designed to minimize burdens on 

small entities. There are a number of 

ways in which the database has been 

designed to limit the burden on small 

entities. First, the Commission does not 

impose any real-time obligations on 

ETCs to update the database. The ETCs 

must update the database prior to 

seeking reimbursement. Second, to the 

extent that ETCs have not collected the 

necessary data from existing customers 

to send to the duplicates database, ETCs 

will have a significant period of time 

before the database is operational to 

collect such information because the 

Commission projects that the database 

could take up to a year to build and 

ETCs are given an additional 60 days to 

populate the database. The Commission 

has directed USAC to provide support 

to ETCs regarding how they should 

populate the database, and this 

assistance should further reduce the 

burden on ETCs, particularly those 

smaller entities with fewer back-office 

resources and less sophisticated 

systems. For similar reasons, the burden 

on small entities will be limited because 

the database will be designed to accept 

the subscriber information in many 

different formats, not just via a machine 

to machine connection. The database 

will include an ID verification function, 

which had heretofore been undertaken 

by some ETCs at their own expense. The 

database includes an exception 

management and dispute resolution 

process so that the burden on ETCs to 

handle disputes if a subscriber is 

classified as a duplicate by the database 

will be limited. 

78. Toll Limitation Service Support. In 

the Order, the Commission begins the 

process of eliminating toll limitation 

service (TLS) support and modifies its 

rules for which ETCs must offer TLS. 

The Commission finds that TLS is less 

relevant in a marketplace where many 

ETCs do not separately charge for ‘‘toll’’ 

or ‘‘long distance’’ calls. To the extent 

an ETC still distinguishes between local 

and long distance calling in its Lifeline 

service, it must provide at no additional 

cost to the consumer the ability to limit 

or block calls that would result in 

additional charge. Support for TLS will 

be eliminated over three years to 

mitigate the impact of this change. In 

the first year of limited TLS support, 

support will be capped at $3 per month 

per consumer. In the second year, 

support will be limited to $2 per month 

per consumer. In the third year, support 

will be eliminated. ETCs seeking TLS 

reimbursement will need to adjust their 

TLS provisioning methods as there will 

no longer be a separate TLS 

reimbursement outside of the standard 

Lifeline support amount. This rule will 

have an economic impact only on ETCs 

unable to provide TLS at an incremental 

cost above the limits set in the rule. 

79. Link Up. The Order will eliminate 

Link Up support to all ETCs on nonTribal lands and limit Link Up on Tribal 

lands to high cost recipients deploying 

infrastructure. Marketplace trends 

indicate that Lifeline consumers 

increasingly have service options from 

ETCs that neither draw on Link Up 

support nor charge the consumer a 

service initiation fee. In balancing a 

number of universal service goals with 

finite resources, we conclude that 

dollars currently spent for Link Up can 

be more effectively spent to improve 

and modernize the Lifeline program. 

Some ETCs who had previously been 

receiving support from the Fund will no 

longer receive such support, however, 

the rule will not disproportionately 

impact small entities because the 

support is being eliminated for all ETCs 

serving non-Tribal areas—not just small 

entitites. 

80. Subscriber Usage of Customer 

Supported Service. The Order 

establishes a rule that pre-paid ETCs 

who do not charge a fee for the service 

(pre-paid ETCs) may not seek Lifeline 

reimbursement until a subscriber 

initiates service. Moreover, the rules 

require pre-paid ETCs to de-enroll 

subscribers who fail to use the service 

within a consecutive 60-day period and 

correspondingly update the duplicates 

database within one business day of any 

such de-enrollment. These new rules 

require pre-paid ETCs to monitor usage 

prior to seeking reimbursement from the 

low-income fund. In an effort to make 

compliance easier, the rules identify 

what actions on the part of consumers 

constitute usage. Given that carriers 

already have systems in place whereby 

usage is monitored so as to prevent 

consumers from using more than their 

allocated minutes, the burden of deenrolling those consumers who do not 

use the service within a 60-day period 

is likely minimal. Moreover, while there 

may be some administrative expense 

related to updating the database, we 

anticipate such expense to be nominal. 

The new rules also require pre-paid 

ETCs to inform subscribers at service 

initiation of the usage and deenrollment policies. This new 

requirement only applies to those ETCs 

choosing to provide Lifeline service at 

no charge to subscribers. 

81. Minimum Consumer Charge. The 

Order does not adopt a minimum 

consumer charge for Lifeline services 

and eliminates the current rule 

imposing a minimum local charge on 

Tribal subscribers. The requirements do 

not impose any obligations on carriers, 

large or small, therefore there is no 

associated cost of compliance. 

82. Marketing & Outreach. The Order 

requires ETCs to include plain, easy-tounderstand language in all of their 

Lifeline marketing materials that the 

offering is a Lifeline-supported service; 

that Lifeline is a government assistance 

program; that only eligible consumers 

may enroll in the program; what 

documentation is necessary for 

enrollment; and that the program is 

limited to one benefit per household, 

consisting of either wireline or wireless 

service. Additionally, we require ETCs 

to disclose the company name under 

which it does business and the details 

of its Lifeline service offerings in its 

Lifeline-related marketing and 

advertising. We do not anticipate this 

rule to have a significant economic 

impact on any entities because the costs 

of including basic program information 

in all marketing materials should be 

minimal. 

83. Audits and Enforcement. The 

Order adopts a new audit requirement 

whereby newly designated ETCs will be 

audited by USAC within the first 18 

months of seeking Lifeline support in 

any single state. This requirement is the 

same regardless of the size of the ETC. 

Moreover, because all ETCs are required 

to maintain records for a period of three 

years, submit annual recertification 

documentation, and be subjected to 

discretionary USAC audits, this first 

year audit requirement does not pose 

any burden or hardship on new ETCs or 

a disproportionate burden on small 

ETCs.The Order also requires those 

ETCs drawing more than $5 million in 

low-income support from the fund, at 

the holding company level, to perform 

a biennial independent audit. This 

requirement only pertains to large 

entities therefore there is no impact, let 

alone a disproportionate one, on small 

ETCs. 

84. In the Order, the Commission 

requires the submission of certain 

ownership information to USAC in 

order to implement our new biennial 

audit rule. ETCs are required to report 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12963 

ownership information, including 

affiliates, holding companies, and any 

branding, to USAC, along with relevant 

universal service identifiers so that we 

may determine at the holding company 

level which ETCs meet the $5 million 

threshold. In addition, the Order 

requires newly designated ETCs to 

describe service offerings and type of 

service being provided. These reporting 

requirements apply to all ETCs equally 

and do not have a disproportionate 

impact on small providers. This 

reporting will help the Commission 

increase accountability in our universal 

service programs by simplifying the 

process of determining the total amount 

of public support received by each 

recipient, regardless of corporate 

structure. This new requirement will 

impose a burden on all ETCs, though 

not one that has a significant economic 

impact. While there will be some 

administrative costs associated with this 

requirement, the overall burden should 

be minimal and will be greater for large 

ETCs operating with complex corporate 

structures across multiple study areas. 

85. Payment of Low-Income Support. 

The Order adopts a three month 

transition for low-income support to be 

disbursed based on actual support in 

place of the current administrative 

process of paying low-income support 

based on projected service. The Order 

accelerates USAC’s payment of lowincome support for carriers filing the 

FCC Form 497 electronically by a 

monthly deadline. The window by 

which carriers must file revisions or 

original FCC Form 497s is reduced from 

fifteen months from the end of a 

calendar year, to a rolling twelve month 

window. In order to accomplish this 

transition, the Commission sets forth a 

procedure whereby entities determine 

which study area codes to transition in 

each of the transition months, thereby 

allowing carriers to proportionately 

distribute any potential financial burden 

resulting from the transition to 

payments based on actual support. The 

Commission sets the transition to 

payments based on actual support to 

begin in July 2012, giving small entities, 

and all ETCs alike, ample time to 

prepare for the transition to payments 

based on actual support. Any economic 

impact of this revision would be equal 

to all entities. 

86. In addition, the Commission 

expedites payment of low-income funds 

for carriers that file the FCC Form 497 

electronically by the monthly deadline, 

thereby allowing ETCs to receive 

payments in a timely manner for timely 

electronic filings, and helping small 

entities reduce the negative financial 

impact of delayed payment. The 

Commission narrowed the revision 

window for FCC Form 497s from fifteen 

months to a rolling twelve month 

window. While carriers, large or small, 

may experience a minor burden by 

narrowing this revision window, the 

burden is minimized by the transition to 

payments on actual support. Carriers 

should not require as much time to 

scrutinize payments received because 

the calculations of projections and trueups is being eliminated, and payments 

will be based on actual support 

provided by the ETC. A twelve month 

rolling window should be sufficient 

time for carriers to reconcile their books 

and file any required revisions, without 

imposing an unfair burden. 

87. Bundled Services. In the Order, we 

amend §§ 54.401 and 54.403 of the 

Commission’s rules to adopt a federal 

policy providing all ETCs (whether 

designated by a state or this 

Commission) the flexibility to permit 

Lifeline subscribers to apply their 

Lifeline discount to bundled service 

packages or packages containing 

optional calling features available to 

Lifeline consumers. We do not expect 

this rule change to have a substantial 

financial impact, as carriers can elect 

not to offer bundled service packages or 

packages containing optional calling 

features to Lifeline consumers. We are 

not mandating that they do so at this 

time and will continue to weigh the 

effects of the flexible policy adopted in 

the Order. We believe that the benefits 

to consumers that could result from this 

rule outweigh the potential costs of 

compliance for carriers who choose to 

make such plans available to Lifeline 

consumers. 

88. Support for Broadband: Pilot 

Program. The Order will establish a 

broadband pilot program aimed at 

generating statistically significant data 

that will allow the Commission, ETCs, 

and the public to analyze the 

effectiveness of different approaches to 

using Lifeline funds to making 

broadband more affordable for lowincome Americans while providing 

support that is sufficient but not 

excessive. The Commission directs the 

Bureau to solicit applications from ETCs 

to participate in the Pilot Program and 

to select a relatively small number of 

projects to test the impact on broadband 

adoption with variations in the monthly 

discount for broadband services, 

including variations on the discount 

amount, the duration of the discount 

(phased down over time or constant) 

over a 12-month period. The Bureau 

will also give preference to ETCs that 

partner with third parties that have 

already developed approaches to 

overcoming broadband adoption 

barriers, including digital literacy, 

equipment costs, and relevance. 

89. We do not expect these 

requirements to have a significant 

economic impact on ETCs because 

entities have a choice of participating. 

We also do not expect small entities to 

be disproportionately impacted. The 

Bureau will consider whether the 

projects proposed will promote 

entrepreneurs and other small 

businesses in the provision and 

ownership of telecommunications 

services and information services, 

consistent with section 257 of the 

Communications Act, including those 

that may be socially and economically 

disadvantaged businesses. All ETCs that 

choose to participate will be required to 

collect and submit data throughout the 

pilot to USAC. The collection of 

information is required to study the 

length and amount of subsidy that is 

necessary for low-income consumers to 

adopt broadband. The benefits of 

collecting information outweigh any 

costs. 

90. Facilities-Based Requirements. In 

the Order, the Commission forbears 

from applying the Act’s facilities 

requirement of section 214(e)(1)(A) to 

all telecommunications carriers that 

seek limited ETC designation to 

participate in the Lifeline program, 

subject to certain conditions. 

Specifically, each carrier must (i) 

comply with certain 911 requirements; 

and (ii) file, subject to Bureau approval, 

a compliance plan providing specific 

information regarding the carrier’s 

service offerings and outlining the 

measures the carrier will take to 

implement the obligations contained in 

this Order. To avoid disruption to 

subscribers served by existing Lifelineonly ETCs designated prior to December 

29, 2011, those ETCs can continue to 

receive reimbursement pending 

approval of their compliance plan, 

provided they submit their plan to the 

Bureau by July 1, 2012. Carriers 

designated after December 29, 2011 will 

not receive reimbursement from the 

Fund until the Bureau approves their 

compliance plans. 

91. We do not expect these changes to 

have a disproportionate impact on 

entities, including those that are small 

entities, because the Commission will 

no longer require carriers to seek 

forbearance from the facilities 

requirement of section 214(e)(1)(a). The 

Commission, however, will continue to 

require carriers seeking to forbear from 

the facilities requirement of section 214 

to comply with certain 911 

requirements and to file and obtain 

approval from the Bureau of a 

compliance plan describing the ETC’s 

mstockstill on DSK4VPTVN1PROD with RULES3

12964 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

adherence to certain protections 

designed to protect consumers and the 

Fund. The Commission has historically 

imposed these requirements on carriers 

seeking to forbear from the facilities 

requirement so this will not unduly 

burden to all impacted entities. 

H. Steps Taken To Minimize Significant 

Economic Impact on Small Entities, and 

Significant Alternatives Considered 

92. The RFA requires an agency to 

describe any significant alternatives that 

it has considered in developing its 

approach, which may include the 

following four alternatives (among 

others): ‘‘(1) The establishment of 

differing compliance or reporting 

requirements or timetables that take into 

account the resources available to small 

entities; (2) the clarification, 

consolidation, or simplification of 

compliance or reporting requirements 

under the rule for such small entities; 

(3) the use of performance rather than 

design standards; and (4) an exemption 

from coverage of the rule, or any part 

thereof, for small entities.’’ 

93. Support Amounts for Voice 

Service. The Commission considered 

the establishment of a separate rate of 

reimbursement for different types of 

providers. The Commission determined 

that such a system of reimbursement 

would create administrative difficulties 

for USAC and for ETCs. A tiered system, 

be it the prior structure or the one 

contemplated for the benefit of small 

entities, does not treat all subscribers 

equally and makes comparison of 

Lifeline plans difficult for consumers. 

Therefore, we determined that the 

benefits of such a structure do not 

outweigh the costs. 

94. One Per Household. We 

considered alternatives to a one-perhousehold rule, including a rule 

permitting one Lifeline-supported 

service per adult and one Lifelinesupported service per residential 

address. We did not, however, adopt 

these approaches—the former because it 

would increase the size of the universal 

service fund, inconsistent with our 

program goals, and the latter because it 

could potentially exclude eligible 

consumers from the Lifeline program. 

Thus, we found that the benefits of a 

one-per-household rule and the 

associated processes we adopt today 

outweigh the potential costs. 

95. Certification of Consumer 

Eligibility. We considered alternatives 

that would require ETCs to verify only 

a portion of their Lifeline subscriber 

base, including allowing small ETCs 

within a state to perform sampling in 

the aggregate rather than on an 

individual basis, requiring ETCs with a 

minimal number of Lifeline subscribers 

to sample fewer subscribers than larger 

ETCs, and allowing all ETCs to sample 

a lesser percentage of their Lifeline 

subscriber base. The approach we adopt 

in the Order strikes an appropriate 

balance between these interests by 

helping to identify and de-enroll 

ineligible subscribers, while imposing 

fewer burdens on consumers and ETCs 

than a full census survey (i.e., requiring 

consumers to annually produce 

documentation to verify continued 

eligibility). 

96. National Accountability Database. 

The Commission considered whether 

ETCs would be obligated to update the 

database with customer information in 

real-time. The Commission found that it 

would be overly burdensome for ETCs, 

particularly ETCs which are also small 

entities, to implement real-time 

connections between the database and 

carriers given the limited benefits that 

real-time updates would provide. We 

therefore did not adopt a rule that the 

database would have to be updated in 

real-time. Furthermore, except for 

information regarding customer deenrollment, ETCs would have ten 

business days to update the database 

once it has become aware that 

information regarding a subscriber has 

changed. The Commission adopted a 

rule that the first ETC to populate the 

database with a particular customer’s 

information would be able to receive 

reimbursement for that customer. The 

Commission acknowledged that this 

rule would provide an advantage to 

those ETCs with real-time updating 

capability, but the Commission found 

that this approach would reduce the 

amount of duplicative support and 

encourage the prompt transmission of 

data without imposing burdens that a 

real-time updating requirement might 

impose on small entities. 

97. Toll Limitation Service Support. 

The new TLS support rule, as discussed 

above, may have an economic impact on 

entities, including an impact on small 

entities because they are used to getting 

TLS support. This rule will have an 

economic impact only on ETCs unable 

to provide TLS at an incremental cost 

above limits set in the rule. In the Order, 

we note that ILECs typically seek TLS 

support at a much lower rate than 

competitive LECs. Small entities that 

purchase TLS will no longer be able to 

seek reimbursement for the incremental 

costs of doing so after 2013. Therefore, 

small competitive LECs may still be 

required to offer TLS to Lifeline 

subscribers but unable to receive 

sufficient support for the incremental 

costs of doing so. However, we adopt 

this TLS support rule to encourage 

efficiencies in the provisioning of TLS. 

In light of the concerns expressed by 

competitive LECs, we considered 

several other approaches to reforming 

TLS support, including a shorter 

timeframe for reduction of TLS support 

as well as an immediate elimination of 

support. We chose the approach 

adopted in the Order because it is the 

least burdensome method to reform TLS 

support. 

98. Link Up. While we considered 

some carriers’ proposal to decrease the 

Link Up support amount, and others to 

define more narrowly appropriate and 

inappropriate uses of Link Up, on 

balance, the Commission concluded that 

the dollars spent on Link Up in its 

current form can be better spent on 

other uses, such as modernizing the 

program and constraining the overall 

size of the fund. We acknowledge that 

some ETCs will receive less support as 

a result of the elimination of Link Up 

funds but the Commission has 

concluded that Link Up support has 

been abused by some carriers and that 

USF dollars are better spent supporting 

other aspects of the program. 

99. Subscriber Usage of Customer 

Supported Services. We extend the 

consumer usage condition (whereby 

subscribers will be de-enrolled if they 

fail to use the service within a 

consecutive 60-day period) only to free 

pre-paid services, which are those 

services for which subscribers do not 

receive monthly bills and do not have 

any regular billing relationship with the 

ETC, and decline at this time to impose 

this condition on other types of Lifeline 

supported services. We are sensitive to 

the administrative burden that a 60-day 

usage requirement may have on postpaid services, and at this time do not 

extend the usage requirements to postpaid services, whether wireline or 

wireless. 

100. Audits and Enforcement. We 

adopt a requirement that every ETC 

providing Lifeline service and drawing 

$5 million or more in the aggregate on 

an annual basis from the low-income 

program hire an independent audit firm 

to assess the ETC’s overall compliance 

with the program’s requirements every 

two years. We considered imposing the 

biennial independent audit requirement 

on all ETCs but rejected that as too 

burdensome on small entities. We 

concluded it was appropriate to focus 

the mandatory independent audit 

requirement on the largest recipients 

who post the biggest risk to the program 

if they lack effective internal controls to 

ensure compliance with Commission 

requirements. 

101. Payment of Low-Income Support. 

The Commission sought comment on a 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12965 

one month transition, as proposed by 

USAC, however the Commission found 

that the financial impact of the one 

month proposed transition could have 

been overly burdensome on the 

financial well-being of small entities 

participating in the Lifeline program. 

The Commission considered a two 

month transition as suggested by 

commenters, and went one step further 

to extend the transition to three months, 

thus allowing all carriers, especially 

small entities, to minimize any potential 

negative financial impact by spreading 

the transition out over the three months. 

102. Bundled Services. We considered 

adopting a rule mandating that all ETCs 

allow Lifeline discounts to be applied to 

any package containing a voice 

component; however, we determined 

that we did not have sufficient 

information in the record to evaluate the 

impact of a rule at this time. We also 

adopt a rule that ETCs must explicitly 

notify Lifeline subscribers purchasing 

bundled packages or packages 

containing optional calling features that 

partial payments will first be applied to 

pay down the allocated price of the 

Lifeline voice services, and require 

ETCs to provide clear language to this 

effect on the subscriber’s bill. We do not 

expect that this rule will 

disproportionately impact small 

businesses, which, as above, may opt 

not to offer such plans to Lifeline 

subscribers. Additionally, we expect 

that some carriers may already have 

processes in place to apply partial 

payments to maintain the voice portion 

of a Lifeline calling plan. Moreover, this 

rule will help to prevent Lifeline 

subscribers from being disconnected 

from voice service for non-payment, 

thereby reducing potential burdens that 

may result to ETCs from having to reenroll disconnected subscribers. 

103. Report to Congress: The 

Commission will send a copy of the 

Order, including this FRFA, in a report 

to be sent to Congress pursuant to the 

Congressional Review Act. In addition, 

the Commission will send a copy of the 

Order, including this FRFA, to the Chief 

Counsel for Advocacy of the SVA. A 

copy of the Order and FRFA (or 

summaries thereof) will also be 

published in the Federal Register. 

XII. Ordering Clauses 

104. Accordingly, it is ordered, that 

pursuant to the authority contained in 

sections 1, 2, 4(i), 10, 201–206, 214, 

218–220, 251, 252, 254, 256, 303(r), 332, 

and 403 of the Communications Act of 

1934, as amended, and section 706 of 

the Telecommunications Act of 1996, 47 

U.S.C. 151, 152, 154(i), 160, 201–206, 

214, 218–220, 251, 252, 254, 256, 303(r), 

332, 403, 1302, and §§ 1.1 and 1.427 of 

the Commission’s rules, 47 CFR 1.1, 

1.427, this Report and Order is Adopted. 

105. It is further ordered that, Part 54 

of the Commission’s rules, 47 CFR part 

54, is Amended as set forth in this rule, 

and such rule amendments shall be 

effective April 2, 2012, except for those 

rules and requirements that involve 

Paperwork Reduction Act burdens, 

which shall become effective 

immediately upon announcement in the 

Federal Register of OMB approval and 

of effective dates of such rules, and 

except for the amendments contained 

herein to 47 CFR 54.411, 54.412, 54.413 

and 54.414 which shall become effective 

April 1, 2012; and 47 CFR 54.409 which 

shall become effective June 1, 2012. 

106. It is further ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, the petition for forbearance 

filed by AMERICAN BROADBAND & 

TELECOMMUNICATIONS is granted to 

the extent discussed herein and 

conditioned on fulfillment of the 

obligations set forth in this order. 

107. It is further ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, the petition for forbearance 

filed by MILLENNIUM 2000, INC. is 

granted to the extent discussed herein 

and conditioned on fulfillment of the 

obligations set forth in this order. 

108. It Is Further Ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, the petition for forbearance 

filed by NORTH AMERICAN LOCAL, 

LLC is granted to the extent discussed 

herein and conditioned on fulfillment of 

the obligations set forth in this order. 

109. It is further ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, the petition for forbearance 

filed by TOTAL CALL MOBILE, INC. is 

granted to the extent discussed herein 

and conditioned on fulfillment of the 

obligations set forth in this order. 

110. It is further ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, the petition for forbearance 

filed by AIRVOICE WIRELESS, LLC Is 

granted to the extent discussed herein 

and conditioned on fulfillment of the 

obligations set forth in this order. 

111. It is further ordered that, 

pursuant to the authority contained in 

sections 4(i), 4(j), 10, 214, and 254 of the 

Communications Act of 1934, as 

amended, 47 U.S.C. 154(i), 154(j), 160, 

214, 254, we forbear from applying 

section 214(e)(1)(A) of the 

Communications Act, 47 U.S.C. 

214(e)(1)(A), and § 54.201(d)(1) and (i) 

of the Commission’s rules, 47 CFR 

54.201(d)(1), (i), to American Broadband 

& Telecommunications, Millennium 

2000, Inc., North American Local, LLC, 

Total Call Mobile, Inc. and Airvoice 

Wireless, LLC to the extent discussed 

herein and conditioned on fulfillment of 

the obligations set forth in this order. 

112. It is further ordered that the 

Petition of Qwest, Inc. regarding selfcertification of subscribers on Tribal 

lands, filed April 25, 2008, is granted. 

113. It is further ordered that the 

Petition of AMERICAN PUBLIC 

COMMUNICATIONS COUNCIL seeking 

a rulemaking regarding payphone 

service eligibility for Lifeline support, 

filed December 6, 2010, is denied. 

114. It is further ordered that the 

Petition of AMERICAN PUBLIC 

COMMUNICATIONS COUNCIL for 

interim relief seeking to allow ETCs to 

receive Lifeline support for services 

provided to payphones, filed December 

6, 2010, is denied. 

115. It is further ordered that the 

Commission shall send a copy of this 

Report and Order to Congress and to the 

Government Accountability Office 

pursuant to the Congressional Review 

Act, see 5 U.S.C. 801(a)(1)(A). 

116. It is further ordered that the 

Commission’s Consumer and 

Governmental Affairs Bureau, Reference 

Information Center, shall send a copy of 

this Report and Order, including the 

Final Regulatory Flexibility Analysis, to 

the Chief Counsel for Advocacy of the 

Small Business Administration. 

List of Subjects in 47 CFR Part 54 

Communications common carriers, 

Reporting and record keeping 

requirements, Telecommunications, 

Telephone. 

Federal Communications Commission. 

Marlene H. Dortch, 

Secretary. 

Final Rules 

For the reasons discussed in the 

preamble, the Federal Communications 

Commission amends 47 CFR part 54 as 

follows: 

mstockstill on DSK4VPTVN1PROD with RULES3

12966 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

PART 54—UNIVERSAL SERVICE 

■ 1. The authority citation for part 54 

continues to read as follows: 

Authority: 47 U.S.C. 151, 154(i), 201, 205, 

214, 219, 220, 254, 303(r), 403, and 1302 

unless otherwise noted. 

Subpart A—General Information 

■ 2. Amend § 54.5 by revising the 

definition of ‘‘eligible 

telecommunications carrier’’ to read as 

follows: 

§ 54.5 Terms and definitions. 

* * * * * 

Eligible telecommunications carrier. 

‘‘Eligible telecommunications carrier’’ 

means a carrier designated as such 

under subpart C of this part. 

* * * * * 

Subpart B—Services Designated for 

Support 

■ 3. Amend § 54.101 by revising 

paragraph (a) to read as follows: 

§ 54.101 Supported services for rural, 

insular and high cost areas. 

(a) Services designated for support. 

Voice Telephony services shall be 

supported by federal universal service 

support mechanisms. Eligible voice 

telephony services must provide voice 

grade access to the public switched 

network or its functional equivalent; 

minutes of use for local service 

provided at no additional charge to end 

users; access to the emergency services 

provided by local government or other 

public safety organizations, such as 911 

and enhanced 911, to the extent the 

local government in an eligible carrier’s 

service area has implemented 911 or 

enhanced 911 systems; and toll 

limitation services to qualifying lowincome consumers as provided in 

subpart E of this part. 

* * * * * 

Subpart C—Carriers Eligible for 

Universal Service Support 

■ 4. Amend § 54.201 by revising 

paragraphs (a)(1) and (h) to read as 

follows: 

§ 54.201 Definition of eligible 

telecommunications carriers generally. 

(a) * * * 

(1) Only eligible telecommunications 

carriers designated under this subpart 

shall receive universal service support 

distributed pursuant to part 36 of this 

chapter, and subparts D and E of this 

part. 

* * * * * 

(h) A state commission shall not 

designate a common carrier as an 

eligible telecommunications carrier for 

purposes of receiving support only 

under subpart E of this part unless the 

carrier seeking such designation has 

demonstrated that it is financially and 

technically capable of providing the 

supported Lifeline service in 

compliance with subpart E of this part. 

* * * * * 

■ 5. Revise § 54.202 to read as follows: 

§ 54.202 Additional requirements for 

Commission designation of eligible 

telecommunications carriers. 

(a) In order to be designated an 

eligible telecommunications carrier 

under section 214(e)(6), any common 

carrier in its application must: 

(1)(i) Certify that it will comply with 

the service requirements applicable to 

the support that it receives. 

(ii) Submit a five-year plan that 

describes with specificity proposed 

improvements or upgrades to the 

applicant’s network throughout its 

proposed service area. Each applicant 

shall estimate the area and population 

that will be served as a result of the 

improvements. Except, a common 

carrier seeking designation as an eligible 

telecommunications carrier in order to 

provide supported services only under 

subpart E of this part does not need to 

submit such a five-year plan. 

(2) Demonstrate its ability to remain 

functional in emergency situations, 

including a demonstration that it has a 

reasonable amount of back-up power to 

ensure functionality without an external 

power source, is able to reroute traffic 

around damaged facilities, and is 

capable of managing traffic spikes 

resulting from emergency situations. 

(3) Demonstrate that it will satisfy 

applicable consumer protection and 

service quality standards. A 

commitment by wireless applicants to 

comply with the Cellular 

Telecommunications and Internet 

Association’s Consumer Code for 

Wireless Service will satisfy this 

requirement. Other commitments will 

be considered on a case-by-case basis. 

(4) For common carriers seeking 

designation as an eligible 

telecommunications carrier for purposes 

of receiving support only under subpart 

E of this part, demonstrate that it is 

financially and technically capable of 

providing the Lifeline service in 

compliance with subpart E of this part. 

(5) For common carriers seeking 

designation as an eligible 

telecommunications carrier for purposes 

of receiving support only under subpart 

E of this part, submit information 

describing the terms and conditions of 

any voice telephony service plans 

offered to Lifeline subscribers, including 

details on the number of minutes 

provided as part of the plan, additional 

charges, if any, for toll calls, and rates 

for each such plan. To the extent the 

eligible telecommunications carrier 

offers plans to Lifeline subscribers that 

are generally available to the public, it 

may provide summary information 

regarding such plans, such as a link to 

a public Web site outlining the terms 

and conditions of such plans. 

(b) Public interest standard. Prior to 

designating an eligible 

telecommunications carrier pursuant to 

section 214(e)(6), the Commission 

determines that such designation is in 

the public interest. 

(c) A common carrier seeking 

designation as an eligible 

telecommunications carrier under 

section 214(e)(6) for any part of Tribal 

lands shall provide a copy of its petition 

to the affected tribal government and 

tribal regulatory authority, as 

applicable, at the time it files its petition 

with the Federal Communications 

Commission. In addition, the 

Commission shall send any public 

notice seeking comment on any petition 

for designation as an eligible 

telecommunications carrier on Tribal 

lands, at the time it is released, to the 

affected tribal government and tribal 

regulatory authority, as applicable, by 

the most expeditious means available. 

§ 54.209 [Removed] 

■ 6. Section 54.209 is removed. 

Subpart E—Universal Service Support 

for Low-Income Consumers 

■ 7. Revise § 54.400 to read as follows: 

54.400 Terms and definitions. 

As used in this subpart, the following 

terms shall be defined as follows: 

(a) Qualifying low-income consumer. 

A ‘‘qualifying low-income consumer’’ is 

a consumer who meets the 

qualifications for Lifeline, as specified 

in § 54.409. 

(b) Toll blocking service. ‘‘Toll 

blocking service’’ is a service provided 

by an eligible telecommunications 

carrier that lets subscribers elect not to 

allow the completion of outgoing toll 

calls from their telecommunications 

channel. 

(c) Toll control service. ‘‘Toll control 

service’’ is a service provided by an 

eligible telecommunications carrier that 

allows subscribers to specify a certain 

amount of toll usage that may be 

incurred on their telecommunications 

channel per month or per billing cycle. 

(d) Toll limitation service. ‘‘Toll 

limitation service’’ denotes either toll 

blocking service or toll control service 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12967 

for eligible telecommunications carriers 

that are incapable of providing both 

services. For eligible 

telecommunications carriers that are 

capable of providing both services, ‘‘toll 

limitation service’’ denotes both toll 

blocking service and toll control service. 

(e) Eligible resident of Tribal lands. 

An ‘‘eligible resident of Tribal lands’’ is 

a ‘‘qualifying low-income consumer,’’ as 

defined in paragraph (a) of this section, 

living on Tribal lands. For purposes of 

this subpart, ‘‘Tribal lands’’ include any 

federally recognized Indian tribe’s 

reservation, pueblo, or colony, 

including former reservations in 

Oklahoma; Alaska Native regions 

established pursuant to the Alaska 

Native Claims Settlement Act (85 Stat. 

688); Indian allotments; Hawaiian Home 

Lands—areas held in trust for Native 

Hawaiians by the state of Hawaii, 

pursuant to the Hawaiian Homes 

Commission Act, 1920 July 9, 1921, 42 

Stat. 108, et. seq., as amended; and any 

land designated as such by the 

Commission for purposes of this subpart 

pursuant to the designation process in 

§ 54.412. 

(f) Income. ‘‘Income’’ is all income 

actually received by all members of a 

household. This includes salary before 

deductions for taxes, public assistance 

benefits, social security payments, 

pensions, unemployment compensation, 

veteran’s benefits, inheritances, 

alimony, child support payments, 

worker’s compensation benefits, gifts, 

lottery winnings, and the like. The only 

exceptions are student financial aid, 

military housing and cost-of-living 

allowances, irregular income from 

occasional small jobs such as babysitting or lawn mowing, and the like. 

(g) Duplicative support. ‘‘Duplicative 

support’’ exists when a Lifeline 

subscriber is receiving two or more 

Lifeline services concurrently or two or 

more subscribers in a household are 

receiving Lifeline services or Tribal Link 

Up support concurrently. 

(h) Household. A ‘‘household’’ is any 

individual or group of individuals who 

are living together at the same address 

as one economic unit. A household may 

include related and unrelated persons. 

An ‘‘economic unit’’ consists of all adult 

individuals contributing to and sharing 

in the income and expenses of a 

household. An adult is any person 

eighteen years or older. If an adult has 

no or minimal income, and lives with 

someone who provides financial 

support to him/her, both people shall be 

considered part of the same household. 

Children under the age of eighteen 

living with their parents or guardians 

are considered to be part of the same 

household as their parents or guardians. 

(i) National Lifeline Accountability 

Database or Database. The ‘‘National 

Lifeline Accountability Database’’ or 

‘‘Database’’ is an electronic system, with 

associated functions, processes, policies 

and procedures, to facilitate the 

detection and elimination of duplicative 

support, as directed by the Commission. 

(j) Qualifying assistance program. A 

‘‘qualifying assistance program’’ means 

any of the federal, state, or Tribal 

assistance programs participation in 

which, pursuant to § 54.409(a) or (b), 

qualifies a consumer for Lifeline service, 

including Medicaid; Supplemental 

Nutrition Assistance Program; 

Supplemental Security Income; Federal 

Public Housing Assistance (Section 8); 

Low-Income Home Energy Assistance 

Program; National School Lunch 

Program’s free lunch program; 

Temporary Assistance for Needy 

Families; Bureau of Indian Affairs 

general assistance; Tribally 

administered Temporary Assistance for 

Needy Families (Tribal TANF); Head 

Start (only those households meeting its 

income qualifying standard); or the 

Food Distribution Program on Indian 

Reservations (FDPIR), and with respect 

to the residents of any particular state, 

any other program so designated by that 

state pursuant to § 54.409(a). 

■ 8. Revise § 54.401 to read as follows: 

§ 54.401 Lifeline defined. 

(a) As used in this subpart, Lifeline 

means a non-transferable retail service 

offering: 

(1) For which qualifying low-income 

consumers pay reduced charges as a 

result of application of the Lifeline 

support amount described in § 54.403; 

and 

(2) That provides qualifying lowincome consumers with voice telephony 

service as specified in § 54.101(a). Toll 

limitation service does not need to be 

offered for any Lifeline service that does 

not distinguish between toll and nontoll calls in the pricing of the service. If 

an eligible telecommunications carrier 

charges Lifeline subscribers a fee for toll 

calls that is in addition to the per month 

or per billing cycle price of the 

subscribers’ Lifeline service, the carrier 

must offer toll limitation service at no 

charge to its subscribers as part of its 

Lifeline service offering. 

(b) Eligible telecommunications 

carriers may allow qualifying lowincome consumers to apply Lifeline 

discounts to any residential service plan 

that includes voice telephony service, 

including bundled packages of voice 

and data services; and plans that 

include optional calling features such 

as, but not limited to, caller 

identification, call waiting, voicemail, 

and three-way calling. Eligible 

telecommunications carriers may also 

permit qualifying low-income 

consumers to apply their Lifeline 

discount to family shared calling plans. 

(c) Eligible telecommunications 

carriers may not collect a service 

deposit in order to initiate Lifeline 

service for plans that: 

(1) Do not charge subscribers 

additional fees for toll calls; or 

(2) That charge additional fees for toll 

calls, but the subscriber voluntarily 

elects toll limitation service. 

(d) When an eligible 

telecommunications carrier is 

designated by a state commission, the 

state commission shall file or require 

the eligible telecommunications carrier 

to file information with the 

Administrator demonstrating that the 

carrier’s Lifeline plan meets the criteria 

set forth in this subpart and describing 

the terms and conditions of any voice 

telephony service plans offered to 

Lifeline subscribers, including details 

on the number of minutes provided as 

part of the plan, additional charges, if 

any, for toll calls, and rates for each 

such plan. To the extent the eligible 

telecommunications carrier offers plans 

to Lifeline subscribers that are generally 

available to the public, it may provide 

summary information regarding such 

plans, such as a link to a public Web 

site outlining the terms and conditions 

of such plans. Lifeline assistance shall 

be made available to qualifying lowincome consumers as soon as the 

Administrator certifies that the carrier’s 

Lifeline plan satisfies the criteria set out 

in this subpart. 

(e) Consistent with § 52.33(a)(1)(i)(C) 

of this chapter, eligible 

telecommunications carriers may not 

charge Lifeline customers a monthly 

number-portability charge. 

■ 9. Revise § 54.403 to read as follows: 

§ 54.403 Lifeline support amount. 

(a) The federal Lifeline support 

amount for all eligible 

telecommunications carriers shall equal: 

(1) Basic support amount. Federal 

Lifeline support in the amount of $9.25 

per month will be made available to an 

eligible telecommunications carrier 

providing Lifeline service to a 

qualifying low-income consumer, if that 

carrier certifies to the Administrator that 

it will pass through the full amount of 

support to the qualifying low-income 

consumer and that it has received any 

non-federal regulatory approvals 

necessary to implement the rate 

reduction. 

(2) Tribal lands support amount. 

Additional federal Lifeline support of 

up to $25 per month will be made 

mstockstill on DSK4VPTVN1PROD with RULES3

12968 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

available to an eligible 

telecommunications carrier providing 

Lifeline service to an eligible resident of 

Tribal lands, as defined in § 54.400 (e), 

to the extent that the eligible 

telecommunications carrier certifies to 

the Administrator that it will pass 

through the full Tribal lands support 

amount to the qualifying eligible 

resident of Tribal lands and that it has 

received any non-federal regulatory 

approvals necessary to implement the 

required rate reduction. 

(b) Application of Lifeline discount 

amount. 

(1) Eligible telecommunications 

carriers that charge federal End User 

Common Line charges or equivalent 

federal charges must apply federal 

Lifeline support to waive the federal 

End User Common Line charges for 

Lifeline subscribers. Such carriers must 

apply any additional federal support 

amount to a qualifying low-income 

consumer’s intrastate rate, if the carrier 

has received the non-federal regulatory 

approvals necessary to implement the 

required rate reduction. Other eligible 

telecommunications carriers must apply 

the federal Lifeline support amount, 

plus any additional support amount, to 

reduce the cost of any generally 

available residential service plan or 

package offered by such carriers that 

provides voice telephony service as 

described in § 54.101, and charge 

Lifeline subscribers the resulting 

amount. 

(2) Where a subscriber makes only a 

partial payment to an eligible 

telecommunications carrier for a 

bundled service package, the eligible 

telecommunications carrier must apply 

the partial payment first to the allocated 

price of the voice telephony service 

component of the package and then to 

the cost of any additional services 

included in the bundled package. 

(c) Toll limitation service. An eligible 

telecommunications carrier providing 

toll limitation service voluntarily 

elected by Lifeline subscribers whose 

Lifeline plans would otherwise include 

a fee for placing a toll call that would 

be in addition to the per month or per 

billing cycle price of the subscriber’s 

Lifeline service, shall, for April 2012 

Lifeline disbursements through 

December 2013 Lifeline disbursements, 

receive support in an amount equal to 

the lesser of: 

(1) The eligible telecommunications 

carrier’s incremental cost of providing 

either toll blocking services or toll 

control services to each Lifeline 

subscriber who has selected such 

service; or 

(2) The following amounts for each 

Lifeline subscriber who has selected toll 

blocking services or toll control 

services: 

(i) $3.00 per month per subscriber 

during 2012; and 

(ii) $2.00 per month per subscriber 

during 2013. 

■ 10. Add § 54.404 to Subpart E to read 

as follows 

§ 54.404 The National Lifeline 

Accountability Database. 

(a) State certification. An eligible 

telecommunications carrier operating in 

a state that provides an approved valid 

certification to the Commission in 

accordance with this section is not 

required to comply with the 

requirements set forth in paragraphs (b) 

and (c) of this section with respect to 

the eligible telecommunications 

carriers’ subscribers in that state. A 

valid certification must include a 

statement that the state has a 

comprehensive system in place to 

prevent duplicative federal Lifeline 

support that is at least as robust as the 

system adopted by the Commission and 

that incorporates information from all 

eligible telecommunications carriers 

receiving low-income support in the 

state and their subscribers. A valid 

certification must also describe in detail 

how the state system functions and for 

each requirement adopted by the 

Commission to prevent duplicative 

support, how the state system performs 

the equivalent functions. The 

certification must be submitted to the 

Commission no later than six months 

from the effective date of this section of 

the Commission’s rules to be valid. 

Such certification will be considered 

approved unless the Wireline 

Competition Bureau rejects the 

certification within 90 days of filing. 

(b) The National Lifeline 

Accountability Database. In order to 

receive Lifeline support, eligible 

telecommunications carriers operating 

in states that have not provided the 

Commission with approved valid 

certification pursuant to paragraph (a) of 

this section must comply with the 

following requirements: 

(1) All eligible telecommunications 

carriers must query the National Lifeline 

Accountability Database to determine 

whether a prospective subscriber who 

has executed a certification pursuant to 

§ 54.410(d) is currently receiving a 

Lifeline service from another eligible 

telecommunications carrier; and 

whether anyone else living at the 

prospective subscriber’s residential 

address is currently receiving a Lifeline 

service. 

(2) If the Database indicates that a 

prospective subscriber, who is not 

seeking to port his or her telephone 

number, is currently receiving a Lifeline 

service, the eligible telecommunications 

carrier must not provide and shall not 

seek or receive Lifeline reimbursement 

for that subscriber. 

(3) If the Database indicates that 

another individual at the prospective 

subscriber’s residential address is 

currently receiving a Lifeline service, 

the eligible telecommunications carrier 

must not seek and will not receive 

Lifeline reimbursement for providing 

service to that prospective subscriber, 

unless the prospective subscriber has 

certified, pursuant to § 54.410(d) that to 

the best of his or her knowledge, no one 

in his or her household is already 

receiving a Lifeline service. 

(4) An eligible telecommunications 

carrier is not required to comply with 

paragraphs (b)(1) through (3) of this 

section if it receives notice from a state 

Lifeline administrator or other state 

agency that the administrator or other 

agency has queried the Database about 

a prospective subscriber and that 

providing the prospective subscriber 

with a Lifeline benefit would not result 

in duplicative support. 

(5) Eligible telecommunications 

carriers may query the Database only for 

the purposes provided in paragraphs 

(b)(1) through (b)(3) of this section, and 

to determine whether information with 

respect to its subscribers already in the 

Database is correct and complete. 

(6) Eligible telecommunications 

carriers must transmit to the Database in 

a format prescribed by the 

Administrator each new and existing 

Lifeline subscriber’s full name; full 

residential address; date of birth and the 

last four digits of the subscriber’s Social 

Security number or Tribal Identification 

number, if the subscriber is a member of 

a Tribal nation and does not have a 

Social Security number; the telephone 

number associated with the Lifeline 

service; the date on which the Lifeline 

service was initiated; the date on which 

the Lifeline service was terminated, if it 

has been terminated; the amount of 

support being sought for that subscriber; 

and the means through which the 

subscriber qualified for Lifeline. 

(7) In the event that two or more 

eligible telecommunications carriers 

transmit the information required by 

this paragraph to the Database for the 

same subscriber, only the eligible 

telecommunications carrier whose 

information was received and processed 

by the Database first, as determined by 

the Administrator, will be entitled to 

reimbursement from the Fund for that 

subscriber. 

(8) All eligible telecommunications 

carriers must update an existing Lifeline 

subscriber’s information in the Database 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12969 

within ten business days of receiving 

any change to that information, except 

as described in paragraph (b)(10) of this 

section. 

(9) All eligible telecommunications 

carriers must obtain, from each new and 

existing subscriber, consent to transmit 

the subscriber’s information. Prior to 

obtaining consent, the eligible 

telecommunications carrier must 

describe to the subscriber, using clear, 

easily understood language, the specific 

information being transmitted, that the 

information is being transmitted to the 

Administrator to ensure the proper 

administration of the Lifeline program, 

and that failure to provide consent will 

result in subscriber being denied the 

Lifeline service. 

(10) When an eligible 

telecommunications carrier de-enrolls a 

subscriber, it must transmit to the 

Database the date of Lifeline service deenrollment within one business day of 

de-enrollment. 

(c) Tribal Link Up and the National 

Lifeline Accountability Database. In 

order to receive universal service 

support reimbursement for Tribal Link 

Up, eligible telecommunications carriers 

operating in states that have not 

provided the Commission with a valid 

certification pursuant to paragraph (a) of 

this section, must comply with the 

following requirements: 

(1) Such eligible telecommunications 

carriers must query the Database to 

determine whether a prospective Link 

Up recipient who has executed a 

certification pursuant to § 54.410(d) has 

previously received a Link Up benefit at 

the residential address provided by the 

prospective subscriber. 

(2) If the Database indicates that a 

prospective subscriber has received a 

Link Up benefit at the residential 

address provided by the subscriber, the 

eligible telecommunications provider 

must not seek Link Up reimbursement 

for that subscriber. 

(3) An eligible telecommunications 

carrier is not required to comply with 

paragraphs (c)(1) through (c)(2) of this 

section, if it receives notice from a state 

Lifeline administrator or other state 

agency that the administrator or other 

agency has queried the Database about 

a prospective subscriber and that 

providing the prospective subscriber 

with a Link Up benefit would not result 

in duplicative support or support to a 

subscriber who had already received 

Link Up support at that residential 

address. 

(4) All eligible telecommunications 

carriers must transmit to the Database in 

a format prescribed by the 

Administrator each new and existing 

Link Up recipient’s full name; 

residential address; date of birth; and 

the last four digits of the subscriber’s 

Social Security number, or Tribal 

identification number if the subscriber 

is a member of a Tribal nation and does 

not have a Social Security number; the 

telephone number associated with the 

Link Up support; and the date of service 

activation. Where two or more eligible 

telecommunications carriers transmit 

the information required by this 

paragraph to the Database for the same 

subscriber, only the eligible 

telecommunications carrier whose 

information was received and processed 

by the Database first, as determined by 

the Administrator, will be entitled to 

reimbursement from the Fund for that 

subscriber. 

(5) All eligible telecommunications 

carriers must obtain, from each new and 

existing subscriber, consent to transmit 

the information required in paragraph 

(c) of this section. Prior to obtaining 

consent, the eligible 

telecommunications carrier must 

describe to the subscriber, using clear, 

easily understood language, the specific 

information being transmitted, that the 

information is being transmitted to the 

Administrator to ensure the proper 

administration of the Link Up program, 

and that failure to provide consent will 

result in the subscriber being denied the 

Link Up benefit. 

■ 11. Revise § 54.405 to read as follows: 

§ 54.405 Carrier obligation to offer Lifeline. 

All eligible telecommunications 

carriers must: 

(a) Make available Lifeline service, as 

defined in § 54.401, to qualifying lowincome consumers. 

(b) Publicize the availability of 

Lifeline service in a manner reasonably 

designed to reach those likely to qualify 

for the service. 

(c) Indicate on all materials describing 

the service, using easily understood 

language, that it is a Lifeline service, 

that Lifeline is a government assistance 

program, the service is non-transferable, 

only eligible consumers may enroll in 

the program, and the program is limited 

to one discount per household. For the 

purposes of this section, the term 

‘‘materials describing the service’’ 

includes all print, audio, video, and web 

materials used to describe or enroll in 

the Lifeline service offering, including 

application and certification forms. 

(d) Disclose the name of the eligible 

telecommunications carrier on all 

materials describing the service. 

(e) De-enrollment—(1) De-enrollment 

generally. If an eligible 

telecommunications carrier has a 

reasonable basis to believe that a 

Lifeline subscriber no longer meets the 

criteria to be considered a qualifying 

low-income consumer under § 54.409, 

the carrier must notify the subscriber of 

impending termination of his or her 

Lifeline service. Notification of 

impending termination must be sent in 

writing separate from the subscriber’s 

monthly bill, if one is provided, and 

must be written in clear, easily 

understood language. A carrier 

providing Lifeline service in a state that 

has dispute resolution procedures 

applicable to Lifeline termination, that 

requires, at a minimum, written 

notification of impending termination, 

must comply with the applicable state 

requirements. The carrier must allow a 

subscriber 30-days following the date of 

the impending termination letter 

required to demonstrate continued 

eligibility. A subscriber making such a 

demonstration must present proof of 

continued eligibility to the carrier 

consistent with applicable annual recertification requirements, as described 

in § 54.410(f). An eligible 

telecommunications carrier must 

terminate any subscriber who fails to 

demonstrate continued eligibility within 

the 30-day time period. A carrier 

providing Lifeline service in a state that 

has dispute resolution procedures 

applicable to Lifeline termination must 

comply with the applicable state 

requirements. 

(2) De-enrollment for duplicative 

support. Notwithstanding paragraph 

(e)(1) of this section, upon notification 

by the Administrator to any eligible 

telecommunications carrier that a 

subscriber is receiving Lifeline service 

from another eligible 

telecommunications carrier or that more 

than one member of a subscriber’s 

household is receiving Lifeline service 

and therefore that the subscriber should 

be de-enrolled from participation in that 

carrier’s Lifeline program, the eligible 

telecommunications carrier must deenroll the subscriber from participation 

in that carrier’s Lifeline program within 

five business days. An eligible 

telecommunications carrier shall not be 

eligible for Lifeline reimbursement for 

any de-enrolled subscriber following the 

date of that subscriber’s de-enrollment. 

(3) De-enrollment for non-usage. 

Notwithstanding paragraph (e)(1) of this 

section, if a Lifeline subscriber fails to 

use, as ‘‘usage’’ is defined in 

§ 54.407(c)(2), for 60 consecutive days a 

Lifeline service that does not require the 

eligible telecommunications carrier to 

assess or collect a monthly fee from its 

subscribers, an eligible 

telecommunications carrier must 

provide the subscriber 30 days’ notice, 

using clear, easily understood language, 

that the subscriber’s failure to use the 

mstockstill on DSK4VPTVN1PROD with RULES3

12970 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Lifeline service within the 30-day notice 

period will result in service termination 

for non-usage under this paragraph. If 

the subscriber uses the Lifeline service 

within 30 days of the carrier providing 

such notice, the eligible 

telecommunications carrier shall not 

terminate the subscriber’s Lifeline 

service. Eligible telecommunications 

carriers shall report to the Commission 

annually the number of subscribers deenrolled for non-usage under this 

paragraph. This de-enrollment 

information must be reported by month 

and must be submitted to the 

Commission at the time an eligible 

telecommunications carrier submits its 

annual certification report pursuant to 

§ 54.416. 

(4) De-enrollment for failure to recertify. Notwithstanding paragraph 

(e)(1) of this section, an eligible 

telecommunications carrier must deenroll a Lifeline subscriber who does 

not respond to the carrier’s attempts to 

obtain re-certification of the subscriber’s 

continued eligibility as required by 

§ 54.410(f); who fails to provide the 

annual one-per-household recertifications as required by § 54.410(f); 

or who relies on a temporary address 

and fails to respond to the carrier’s 

address re-certification attempts 

pursuant to § 54.410(g). Prior to deenrolling a subscriber under this 

paragraph, the eligible 

telecommunications carrier must notify 

the subscriber in writing separate from 

the subscriber’s monthly bill, if one is 

provided using clear, easily understood 

language, that failure to respond to the 

re-certification request within 30 days of 

the date of the request will trigger deenrollment. If a subscriber does not 

respond to the carrier’s notice of 

impending de-enrollment, the carrier 

must de-enroll the subscriber from 

Lifeline within five business days after 

the expiration of the subscriber’s time to 

respond to the re-certification efforts. 

■ 12. Revise § 54.407 to read as follows: 

§ 54.407 Reimbursement for offering 

Lifeline. 

(a) Universal service support for 

providing Lifeline shall be provided 

directly to an eligible 

telecommunications carrier, based on 

the number of actual qualifying lowincome consumers it serves. 

(b) An eligible telecommunications 

carrier may receive universal service 

support reimbursement for each 

qualifying low-income consumer 

served. For each qualifying low-income 

consumer receiving Lifeline service, the 

reimbursement amount shall equal the 

federal support amount, including the 

support amounts described in 

§ 54.403(a) and (c). The eligible 

telecommunications carrier’s universal 

service support reimbursement shall not 

exceed the carrier’s rate for that offering, 

or similar offerings, subscribed to by 

consumers who do not qualify for 

Lifeline. 

(c) An eligible telecommunications 

carrier offering a Lifeline service that 

does not require the eligible 

telecommunications carrier to assess or 

collect a monthly fee from its 

subscribers: 

(1) Shall not receive universal service 

support for a subscriber to such Lifeline 

service until the subscriber activates the 

service by whatever means specified by 

the carrier, such as completing an 

outbound call; and 

(2) After service activation, an eligible 

telecommunications carrier shall only 

continue to receive universal service 

support reimbursement for such Lifeline 

service provided to subscribers who 

have used the service within the last 60 

days, or who have cured their non-usage 

as provided for in § 54.405(e)(3). Any of 

these activities, if undertaken by the 

subscriber will establish ‘‘usage’’ of the 

Lifeline service: 

(i) Completion of an outbound call; 

(ii) Purchase of minutes from the 

eligible telecommunications carrier to 

add to the subscriber’s service plan; 

(iii) Answering an incoming call from 

a party other than the eligible 

telecommunications carrier or the 

eligible telecommunications carrier’s 

agent or representative; or 

(iv) Responding to direct contact from 

the eligible communications carrier and 

confirming that he or she wants to 

continue receiving the Lifeline service. 

(d) In order to receive universal 

service support reimbursement, an 

eligible telecommunications carrier 

must certify, as part of each request for 

reimbursement, that it is in compliance 

with all of the rules in this subpart, and, 

to the extent required under this 

subpart, has obtained valid certification 

and re-certification forms from each of 

the subscribers for whom it is seeking 

reimbursement. 

(e) In order to receive universal 

service support reimbursement, an 

eligible telecommunications carrier 

must keep accurate records of the 

revenues it forgoes in providing Lifeline 

services. Such records shall be kept in 

the form directed by the Administrator 

and provided to the Administrator at 

intervals as directed by the 

Administrator or as provided in this 

subpart. 

■ 13. Revise § 54.409 to read as follows: 

§ 54.409 Consumer qualification for 

Lifeline. 

(a) To constitute a qualifying lowincome consumer: 

(1) A consumer’s household income 

as defined in § 54.400(f) must be at or 

below 135% of the Federal Poverty 

Guidelines for a household of that size; 

or 

(2) The consumer, one or more of the 

consumer’s dependents, or the 

consumer’s household must receive 

benefits from one of the following 

federal assistance programs: Medicaid; 

Supplemental Nutrition Assistance 

Program; Supplemental Security 

Income; Federal Public Housing 

Assistance (Section 8); Low-Income 

Home Energy Assistance Program; 

National School Lunch Program’s free 

lunch program; or Temporary 

Assistance for Needy Families; or 

(3) The consumer must meet 

eligibility criteria established by a state 

for its residents, provided that such 

state-specific criteria are based solely on 

income or factors directly related to 

income. 

(b) A consumer who lives on Tribal 

lands is eligible for Lifeline service as a 

‘‘qualifying low-income consumer’’ as 

defined by § 54.400(a) and as an 

‘‘eligible resident of Tribal lands’’ as 

defined by § 54.400(e) if that consumer 

meets the qualifications for Lifeline 

specified in paragraph (a) of this section 

or if the consumer, one or more of the 

consumer’s dependents, or the 

consumer’s household participates in 

one of the following Tribal-specific 

federal assistance programs: Bureau of 

Indian Affairs general assistance; 

Tribally administered Temporary 

Assistance for Needy Families; Head 

Start (only those households meeting its 

income qualifying standard); or the 

Food Distribution Program on Indian 

Reservations. 

(c) In addition to meeting the 

qualifications provided in paragraph (a) 

or (b) of this section, in order to 

constitute a qualifying low-income 

consumer, a consumer must not already 

be receiving a Lifeline service, and there 

must not be anyone else in the 

subscriber’s household subscribed to a 

Lifeline service. 

■ 14. Revise § 54.410 to read as follows: 

§ 54.410 Subscriber eligibility 

determination and certification. 

(a) All eligible telecommunications 

carriers must implement policies and 

procedures for ensuring that their 

Lifeline subscribers are eligible to 

receive Lifeline services. 

(b) Initial income-based eligibility 

determination. 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12971 

(1) Except where a state Lifeline 

administrator or other state agency is 

responsible for the initial determination 

of a subscriber’s eligibility, when a 

prospective subscriber seeks to qualify 

for Lifeline or using the income-based 

eligibility criteria provided for in 

§ 54.409(a)(1) or (a)(3) an eligible 

telecommunications carrier: 

(i) Must not seek reimbursement for 

providing Lifeline to a subscriber, 

unless the carrier has received a 

certification of eligibility from the 

prospective subscriber that complies 

with the requirements set forth in 

paragraph (d) of this section and has 

confirmed the subscriber’s incomebased eligibility using the following 

procedures: 

(A) If an eligible telecommunications 

carrier can determine a prospective 

subscriber’s income-based eligibility by 

accessing one or more databases 

containing information regarding the 

subscriber’s income (‘‘income 

databases’’), the eligible 

telecommunications carrier must access 

such income databases and determine 

whether the prospective subscriber 

qualifies for Lifeline. 

(B) If an eligible telecommunications 

carrier cannot determine a prospective 

subscriber’s income-based eligibility by 

accessing income databases, the eligible 

telecommunications carrier must review 

documentation that establishes that the 

prospective subscriber meets the 

income-eligibility criteria set forth in 

§ 54.409(a)(1) or (a)(3). Acceptable 

documentation of income eligibility 

includes the prior year’s state, federal, 

or Tribal tax return; current income 

statement from an employer or 

paycheck stub; a Social Security 

statement of benefits; a Veterans 

Administration statement of benefits; a 

retirement/pension statement of 

benefits; an Unemployment/Workers’ 

Compensation statement of benefit; 

federal or Tribal notice letter of 

participation in General Assistance; or a 

divorce decree, child support award, or 

other official document containing 

income information. If the prospective 

subscriber presents documentation of 

income that does not cover a full year, 

such as current pay stubs, the 

prospective subscriber must present the 

same type of documentation covering 

three consecutive months within the 

previous twelve months. 

(ii) Must not retain copies of the 

documentation of a prospective 

subscriber’s income-based eligibility for 

Lifeline. 

(iii) Must, consistent with § 54.417, 

keep and maintain accurate records 

detailing the data source a carrier used 

to determine a subscriber’s eligibility or 

the documentation a subscriber 

provided to demonstrate his or her 

eligibility for Lifeline. 

(2) Where a state Lifeline 

administrator or other state agency is 

responsible for the initial determination 

of a subscriber’s eligibility, an eligible 

telecommunications carrier must not 

seek reimbursement for providing 

Lifeline service to a subscriber, based on 

that subscriber’s income eligibility, 

unless the carrier has received from the 

state Lifeline administrator or other 

state agency: 

(i) Notice that the prospective 

subscriber meets the income-eligibility 

criteria set forth in § 54.409(a)(1) or 

(a)(3); and 

(ii) A copy of the subscriber’s 

certification that complies with the 

requirements set forth in paragraph (d) 

of this section. 

(c) Initial program-based eligibility 

determination. 

(1) Except in states where a state 

Lifeline administrator or other state 

agency is responsible for the initial 

determination of a subscriber’s programbased eligibility, when a prospective 

subscriber seeks to qualify for Lifeline 

service using the program-based criteria 

set forth in § 54.409(a)(2), (a)(3) or (b), 

an eligible telecommunications carrier: 

(i) Must not seek reimbursement for 

providing Lifeline to a subscriber unless 

the carrier has received a certification of 

eligibility from the subscriber that 

complies with the requirements set forth 

in paragraph (d) of this section and has 

confirmed the subscriber’s programbased eligibility using the following 

procedures: 

(A) If the eligible telecommunications 

carrier can determine a prospective 

subscriber’s program-based eligibility 

for Lifeline by accessing one or more 

databases containing information 

regarding enrollment in qualifying 

assistance programs (‘‘eligibility 

databases’’), the eligible 

telecommunications carrier must access 

such eligibility databases to determine 

whether the prospective subscriber 

qualifies for Lifeline based on 

participation in a qualifying assistance 

program; or 

(B) If an eligible telecommunications 

carrier cannot determine a prospective 

subscriber’s program-based eligibility 

for Lifeline by accessing eligibility 

databases, the eligible 

telecommunications carrier must review 

documentation demonstrating that a 

prospective subscriber qualifies for 

Lifeline under the program-based 

eligibility requirements. Acceptable 

documentation of program eligibility 

includes the current or prior year’s 

statement of benefits from a qualifying 

assistance program, a notice or letter of 

participation in a qualifying assistance 

program, program participation 

documents, or another official 

document demonstrating that the 

prospective subscriber, one or more of 

the prospective subscriber’s dependents 

or the prospective subscriber’s 

household receives benefits from a 

qualifying assistance program. 

(ii) Must not retain copies of the 

documentation of a subscriber’s 

program-based eligibility for Lifeline 

services. 

(iii) Must, consistent with § 54.517, 

keep and maintain accurate records 

detailing the data source a carrier used 

to determine a subscriber’s programbased eligibility or the documentation a 

subscriber provided to demonstrate his 

or her eligibility for Lifeline. 

(2) Where a state Lifeline 

administrator or other state agency is 

responsible for the initial determination 

of a subscriber’s eligibility, when a 

prospective subscriber seeks to qualify 

for Lifeline service using the programbased eligibility criteria provided in 

§ 54.409, an eligible 

telecommunications carrier must not 

seek reimbursement for providing 

Lifeline to a subscriber unless the 

carrier has received from the state 

Lifeline administrator or other state 

agency: 

(i) Notice that the subscriber meets 

the program-based eligibility criteria set 

forth in §§ 54.409(a)(2), (a)(3) or (b); and 

(ii) a copy of the subscriber’s 

certification that complies with the 

requirements set forth in paragraph (d) 

of this section. 

(d) Eligibility certifications. Eligible 

telecommunications carriers and state 

Lifeline administrators or other state 

agencies that are responsible for the 

initial determination of a subscriber’s 

eligibility for Lifeline must provide 

prospective subscribers Lifeline 

certification forms that in clear, easily 

understood language: 

(1) Provide the following information: 

(i) Lifeline is a federal benefit and that 

willfully making false statements to 

obtain the benefit can result in fines, 

imprisonment, de-enrollment or being 

barred from the program; 

(ii) Only one Lifeline service is 

available per household; 

(iii) A household is defined, for 

purposes of the Lifeline program, as any 

individual or group of individuals who 

live together at the same address and 

share income and expenses; 

(iv) A household is not permitted to 

receive Lifeline benefits from multiple 

providers; 

(v) Violation of the one-per-household 

limitation constitutes a violation of the 

mstockstill on DSK4VPTVN1PROD with RULES3

12972 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Commission’s rules and will result in 

the subscriber’s de-enrollment from the 

program; and 

(vi) Lifeline is a non-transferable 

benefit and the subscriber may not 

transfer his or her benefit to any other 

person. 

(2) Require each prospective 

subscriber to provide the following 

information: 

(i) The subscriber’s full name; 

(ii) The subscriber’s full residential 

address; 

(iii) Whether the subscriber’s 

residential address is permanent or 

temporary; 

(iv) The subscriber’s billing address, if 

different from the subscriber’s 

residential address; 

(v) The subscriber’s date of birth; 

(vi) The last four digits of the 

subscriber’s social security number, or 

the subscriber’s Tribal identification 

number, if the subscriber is a member of 

a Tribal nation and does not have a 

social security number; 

(vii) If the subscriber is seeking to 

qualify for Lifeline under the programbased criteria, as set forth in § 54.409, 

the name of the qualifying assistance 

program from which the subscriber, his 

or her dependents, or his or her 

household receives benefits; and 

(viii) If the subscriber is seeking to 

qualify for Lifeline under the incomebased criterion, as set forth in § 54.409, 

the number of individuals in his or her 

household. 

(3) Require each prospective 

subscriber to certify, under penalty of 

perjury, that: 

(i) The subscriber meets the incomebased or program-based eligibility 

criteria for receiving Lifeline, provided 

in § 54.409; 

(ii) The subscriber will notify the 

carrier within 30 days if for any reason 

he or she no longer satisfies the criteria 

for receiving Lifeline including, as 

relevant, if the subscriber no longer 

meets the income-based or programbased criteria for receiving Lifeline 

support, the subscriber is receiving 

more than one Lifeline benefit, or 

another member of the subscriber’s 

household is receiving a Lifeline 

benefit. 

(ii) If the subscriber is seeking to 

qualify for Lifeline as an eligible 

resident of Tribal lands, he or she lives 

on Tribal lands, as defined in 54.400(e); 

(iii) If the subscriber moves to a new 

address, he or she will provide that new 

address to the eligible 

telecommunications carrier within 30 

days; 

(iv) If the subscriber provided a 

temporary residential address to the 

eligible telecommunications carrier, he 

or she will be required to verify his or 

her temporary residential address every 

90 days; 

(v) The subscriber’s household will 

receive only one Lifeline service and, to 

the best of his or her knowledge, the 

subscriber’s household is not already 

receiving a Lifeline service; 

(vi) The information contained in the 

subscriber’s certification form is true 

and correct to the best of his or her 

knowledge, 

(vii) The subscriber acknowledges 

that providing false or fraudulent 

information to receive Lifeline benefits 

is punishable by law; and 

(viii) The subscriber acknowledges 

that the subscriber may be required to 

re-certify his or her continued eligibility 

for Lifeline at any time, and the 

subscriber’s failure to re-certify as to his 

or her continued eligibility will result in 

de-enrollment and the termination of 

the subscriber’s Lifeline benefits 

pursuant to § 54.405(e)(4). 

(e) State Lifeline administrators or 

other state agencies that are responsible 

for the initial determination of a 

subscriber’s eligibility for Lifeline must 

provide each eligible 

telecommunications carrier with a copy 

of each of the certification forms 

collected by the state Lifeline 

administrator or other state agency from 

that carrier’s subscribers. 

(f) Annual eligibility re-certification 

process. 

(1) All eligible telecommunications 

carriers must annually re-certify all 

subscribers except for subscribers in 

states where a state Lifeline 

administrator or other state agency is 

responsible for re-certification of 

subscribers’ Lifeline eligibility. 

(2) In order to re-certify a subscriber’s 

eligibility, an eligible 

telecommunications carrier must 

confirm a subscriber’s current eligibility 

to receive Lifeline by: 

(i) Querying the appropriate eligibility 

databases, confirming that the 

subscriber still meets the program-based 

eligibility requirements for Lifeline, and 

documenting the results of that review; 

or 

(ii) Querying the appropriate income 

databases, confirming that the 

subscriber continues to meet the 

income-based eligibility requirements 

for Lifeline, and documenting the 

results of that review; or 

(iii) Obtaining a signed certification 

from the subscriber that meets the 

certification requirements in paragraph 

(d) of this section. 

(3) Where a state Lifeline 

administrator or other state agency is 

responsible for re-certification of a 

subscriber’s Lifeline eligibility, the state 

Lifeline administrator or other state 

agency must confirm a subscriber’s 

current eligibility to receive a Lifeline 

service by: 

(i) Querying the appropriate eligibility 

databases, confirming that the 

subscriber still meets the program-based 

eligibility requirements for Lifeline, and 

documenting the results of that review; 

or 

(ii) Querying the appropriate income 

databases, confirming that the 

subscriber continues to meet the 

income-based eligibility requirements 

for Lifeline, and documenting the 

results of that review; or 

(iii) Obtaining a signed certification 

from the subscriber that meets the 

certification requirements in paragraph 

(d) of this section. 

(4) Where a state Lifeline 

administrator or other state agency is 

responsible for re-certification of 

subscribers’ Lifeline eligibility, the state 

Lifeline administrator or other state 

agency must provide to each eligible 

telecommunications carrier the results 

of its annual re-certification efforts with 

respect to that eligible 

telecommunications carrier’s 

subscribers. 

(5) If an eligible telecommunications 

carrier is unable to re-certify a 

subscriber or has been notified of a state 

Lifeline administrator’s or other state 

agency’s inability to re-certify a 

subscriber, the eligible 

telecommunications carrier must 

comply with the de-enrollment 

requirements provided for in 

§ 54.405(e)(4). 

(g) Re-certification of temporary 

address. An eligible 

telecommunications carrier must recertify, every 90 days, the residential 

address of each of its subscribers who 

have provided a temporary address as 

part of the subscriber’s initial 

certification or re-certification of 

eligibility, pursuant to paragraphs (d), 

(e), or (f) of this section. 

§ 54.411 [Removed] 

■ 15. Section 54.411 is removed. 

■ 16. Add § 54.412 to Subpart E to read 

as follows: 

§ 54.412 Off reservation Tribal lands 

designation process. 

(a) The Commission’s Wireline 

Competition Bureau and the Office of 

Native Affairs and Policy may, upon 

receipt of a request made in accordance 

with the requirements of this section, 

designate as Tribal lands, for the 

purposes of the Lifeline and Tribal Link 

Up program, areas or communities that 

fall outside the boundaries of existing 

Tribal lands but which maintain the 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12973 

same characteristics as lands identified 

as Tribal lands defined as in § 54.400(c). 

(b) A request for designation must be 

made to the Commission by a duly 

authorized official of a federally 

recognized American Indian Tribe or 

Alaska Native Village. 

(c) A request for designation must 

clearly describe a defined geographical 

area for which the requesting party 

seeks designation as Tribal lands. 

(d) A request for designation must 

demonstrate the Tribal character of the 

area or community. 

(e) A request for designation must 

provide sufficient evidence of a nexus 

between the area or community and the 

Tribe, and describe in detail how 

program support to the area or 

community would aid the Tribe in 

serving the needs and interests of its 

citizens and further the Commission’s 

goal of increasing telecommunications 

access on Tribal lands. 

(f) Upon designation by the Wireline 

Competition Bureau and the Office of 

Native Affairs and Policy, the area or 

community described in the designation 

shall be considered Tribal lands for the 

purposes of this subpart. 

■ 17. Revise § 54.413 to read as follows: 

§ 54.413 Link Up for Tribal lands. 

(a) Definition. For purposes of this 

subpart, the term ‘‘Tribal Link Up’’ 

means an assistance program for eligible 

residents of Tribal lands seeking 

telecommunications service from a 

telecommunications carrier that is 

receiving high-cost support on Tribal 

lands, pursuant to subpart D of this part, 

that provides: 

(1) A 100 percent reduction, up to 

$100, of the customary charge for 

commencing telecommunications 

service for a single telecommunications 

connection at a subscriber’s principal 

place of residence imposed by an 

eligible telecommunications carrier that 

is also receiving high-cost support on 

Tribal lands, pursuant to subpart D of 

this part. For purposes of this subpart, 

a ‘‘customary charge for commencing 

telecommunications service’’ is the 

ordinary charge an eligible 

telecommunications carrier imposes and 

collects from all subscribers to initiate 

service with that eligible 

telecommunications carrier. A charge 

imposed only on qualifying low-income 

consumers to initiate service is not a 

customary charge for commencing 

telecommunications service. Activation 

charges routinely waived, reduced, or 

eliminated with the purchase of 

additional products, services, or 

minutes are not customary charges 

eligible for universal service support; 

and 

(2) A deferred schedule of payments 

of the customary charge for commencing 

telecommunications service for a single 

telecommunications connection at a 

subscriber’s principal place of residence 

imposed by an eligible 

telecommunications carrier that is also 

receiving high-cost support on Tribal 

lands, pursuant to subpart D of this part, 

for which the eligible resident of Tribal 

lands does not pay interest. The interest 

charges not assessed to the eligible 

resident of tribal lands shall be for a 

customary charge for connecting 

telecommunications service of up to 

$200 and such interest charges shall be 

deferred for a period not to exceed one 

year. 

(b) An eligible resident of Tribal lands 

may receive the benefit of the Tribal 

Link Up program for a second or 

subsequent time only for otherwise 

qualifying commencement of 

telecommunications service at a 

principal place of residence with an 

address different from the address for 

which Tribal Link Up assistance was 

provided previously. 

■ 18. Add § 54.414 to Subpart E to read 

as follows: 

§ 54.414 Reimbursement for Tribal Link 

Up. 

(a) Eligible telecommunications 

carriers that are receiving high-cost 

support, pursuant to subpart D of this 

part, may receive universal service 

support reimbursement for the 

reduction in their customary charge for 

commencing telecommunications 

service and for providing a deferred 

schedule for payment of the customary 

charge for commencing 

telecommunications services for which 

the subscriber does not pay interest, in 

conformity with § 54.413. 

(b) In order to receive universal 

support reimbursement for providing 

Tribal Link Up, eligible 

telecommunications carriers must 

follow the procedures set forth in 

§ 54.410 to determine an eligible 

resident of Tribal lands’ initial 

eligibility for Tribal Link Up. Eligible 

telecommunications carriers must 

obtain a certification form from each 

eligible resident of Tribal lands that 

complies with § 54.410 prior to 

enrolling him or her in Tribal Link Up. 

(c) In order to receive universal 

service support reimbursement for 

providing Tribal Link Up, eligible 

telecommunications carriers must keep 

accurate records of the reductions in 

their customary charge for commencing 

telecommunications service and for 

providing a deferred schedule for 

payment of the charges assessed for 

commencing service for which the 

subscriber does not pay interest, in 

conformity with § 54.413. Such records 

shall be kept in the form directed by the 

Administrator and provided to the 

Administrator at intervals as directed by 

the Administrator or as provided in this 

subpart. The reductions in the 

customary charge for which the eligible 

telecommunications carrier may receive 

reimbursement shall include only the 

difference between the carrier’s 

customary connection or interest 

charges and the charges actually 

assessed to the subscriber receiving 

Lifeline services. 

§ 54.415 [Removed] 

■ 19. Section 54.415 is removed. 

■ 20. Revise § 54.416 to read as follows: 

§ 54.416 Annual certifications by eligible 

telecommunications carriers. 

(a) Eligible telecommunications 

carrier certifications. Eligible 

telecommunications carriers are 

required to make and submit to the 

Administrator the following annual 

certifications, under penalty of perjury, 

relating to the Lifeline program: 

(1) An officer of each eligible 

telecommunications carrier must certify 

that the carrier has policies and 

procedures in place to ensure that its 

Lifeline subscribers are eligible to 

receive Lifeline services. Each eligible 

telecommunications carrier must make 

this certification annually to the 

Administrator as part of the carrier’s 

submission of annual re-certification 

data pursuant to this section. In 

instances where an eligible 

telecommunications carrier confirms 

consumer eligibility by relying on 

income or eligibility databases, as 

defined in § 54.410(b)(1)(i)(A) or 

(c)(1)(i)(A), the representative must 

attest annually as to what specific data 

sources the eligible telecommunications 

carrier used to confirm eligibility. 

(2) An officer of the eligible 

telecommunications carrier must certify 

that the carrier is in compliance with all 

federal Lifeline certification procedures. 

Eligible telecommunications carriers 

must make this certification annually to 

the Administrator as part of the carrier’s 

submission of re-certification data 

pursuant to this section. 

(3) An officer of the eligible 

telecommunications carrier must certify 

annually that the carrier has obtained a 

valid certification form for each 

subscriber for whom the carrier seeks 

Lifeline reimbursement. 

(b) All eligible telecommunications 

carriers must annually provide the 

results of their re-certification efforts, 

performed pursuant to § 54.410(f), to the 

Commission and the Administrator. 

mstockstill on DSK4VPTVN1PROD with RULES3

12974 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Eligible telecommunications carriers 

designated as such by one or more states 

pursuant to § 54.201 must also provide, 

on an annual basis, the results of their 

re-certification efforts to state 

commissions for subscribers residing in 

those states where the state designated 

the eligible telecommunications carrier. 

Eligible telecommunications carriers 

must also provide their annual recertification results for subscribers 

residing on Tribal lands to the relevant 

Tribal governments. 

(c) States that mandate Lifeline 

support may impose additional 

standards on eligible 

telecommunications carriers operating 

in their states to ensure compliance 

with state Lifeline programs. 

■ 21. Revise § 54.417 to read as follows: 

§ 54.417 Recordkeeping requirements. 

(a) Eligible telecommunications 

carriers must maintain records to 

document compliance with all 

Commission and state requirements 

governing the Lifeline and Tribal Link 

Up program for the three full preceding 

calendar years and provide that 

documentation to the Commission or 

Administrator upon request. 

Notwithstanding the preceding 

sentence, eligible telecommunications 

carriers must maintain the 

documentation required in § 54.410(d) 

and (f) for as long as the subscriber 

receives Lifeline service from that 

eligible telecommunications carrier. 

(b) If an eligible telecommunications 

carrier provides Lifeline discounted 

wholesale services to a reseller, it must 

obtain a certification from that reseller 

that it is complying with all 

Commission requirements governing the 

Lifeline and Tribal Link Up program. 

(c) Non-eligible-telecommunicationscarrier resellers that purchase Lifeline 

discounted wholesale services to offer 

discounted services to low-income 

consumers must maintain records to 

document compliance with all 

Commission requirements governing the 

Lifeline and Tribal Link Up program for 

the three full preceding calendar years 

and provide that documentation to the 

Commission or Administrator upon 

request. To the extent such a reseller 

provides discounted services to lowincome consumers, it must fulfill the 

obligations of an eligible 

telecommunications carrier in 

§§ 54.405(e), 54.405(f), and 54.410. 

■ 22. Add § 54.419 to Subpart E to read 

as follows: 

§ 54.419 Validity of electronic signatures. 

(a) For the purposes of this subpart, 

an electronic signature, defined by the 

Electronic Signatures in Global and 

National Commerce Act, as an 

electronic sound, symbol, or process, 

attached to or logically associated with 

a contract or other record and executed 

or adopted by a person with the intent 

to sign the record, has the same legal 

effect as a written signature. 

(b) For the purposes of this subpart, 

an electronic record, defined by the 

Electronic Signatures in Global and 

National Commerce Act as a contract or 

other record created, generated, sent, 

communicated, received, or stored by 

electronic means, constitutes a record. 

■ 23. Add § 54.420 to Subpart E to read 

as follows: 

§ 54.420 Low income program audits. 

(a) Independent audit requirements 

for eligible telecommunications carriers. 

Companies that receive $5 million or 

more annually in the aggregate, on a 

holding company basis, in Lifeline 

reimbursements must obtain a third 

party biennial audit of their compliance 

with the rules in this subpart. Such 

engagements shall be agreed upon 

performance attestations to assess the 

company’s overall compliance with 

rules and the company’s internal 

controls regarding these regulatory 

requirements. 

(1) For purposes of the $5 million 

threshold, a holding company consists 

of operating companies and affiliates, as 

that term is defined in section 3(2) of 

the Communications Act of 1934, as 

amended, that are eligible 

telecommunications carriers. 

(2) The initial audit must be 

completed one year after the 

Commission issues a standardized audit 

plan outlining the scope of the 

engagement and the extent of 

compliance testing to be performed by 

third-party auditors and shall be 

conducted every two years thereafter, 

unless directed otherwise by the 

Commission. The following minimum 

requirements shall apply: 

(i) The audit must be conducted by a 

licensed certified public accounting 

firm that is independent of the carrier. 

(ii) The engagement shall be 

conducted consistent with government 

accounting standards (GAGAS). 

(3) The certified public accounting 

firm shall submit to the Commission 

any rule interpretations necessary to 

complete the biennial audit, and the 

Administrator shall notify all firms 

subject to the biennial audit 

requirement of such requests. The audit 

issue will be noted, but not held as a 

negative finding, in future audit reports 

for all carriers subject to this 

requirement unless and until guidance 

has been provided by the Commission. 

(4) Within 60 days after completion of 

the audit work, but prior to finalization 

of the report, the third party auditor 

shall submit a draft of the audit report 

to the Commission and the 

Administrator, who shall be deemed 

authorized users of such reports. 

Finalized audit reports must be 

provided to the Commission, the 

Administrator, and relevant states and 

Tribal governments within 30 days of 

the issuance of the final audit report. 

The reports will not be considered or 

deemed confidential. 

(5) Delegated authority. The Wireline 

Competition Bureau and the Office of 

Managing Director have delegated 

authority to perform the functions 

specified in paragraphs (a)(2) and (a)(3) 

of this section. 

(b) Audit requirements for new 

eligible telecommunications carriers. 

After a company is designated for the 

first time in any state or territory the 

Administrator will audit that new 

eligible telecommunications carrier to 

assess its overall compliance with the 

rules in this subpart and the company’s 

internal controls regarding these 

regulatory requirements. This audit 

should be conducted within the carrier’s 

first twelve months of seeking federal 

low-income Universal Service Fund 

support. 

■ 24. Add § 54.422 to Subpart E to read 

as follows: 

§ 54.422 Annual reporting for eligible 

telecommunications carriers that receive 

low-income support. 

(a) In order to receive support under 

this subpart, an eligible 

telecommunications carrier must 

annually report the company name, 

names of the company’s holding 

company, operating companies and 

affiliates, and any branding (a ‘‘dba,’’ or 

‘‘doing-business-as company’’ or brand 

designation) as well as relevant 

universal service identifiers for each 

such entity by Study Area Code. For 

purposes of this paragraph, ‘‘affiliates’’ 

has the meaning set forth in section 3(2) 

of the Communications Act of 1934, as 

amended. 

(b) In order to receive support under 

this subpart, a common carrier 

designated as an eligible 

telecommunications carrier under 

section 214(e)(6) of the Act must 

annually provide: 

(1) Detailed information on any 

outage in the prior calendar year, as that 

term is defined in 47 CFR 4.5, of at least 

30 minutes in duration for each service 

area in which the eligible 

telecommunications carrier is 

designated for any facilities it owns, 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12975 

operates, leases, or otherwise utilizes 

that potentially affect: 

(i) At least ten percent of the end 

users served in a designated service 

area; or 

(ii) A 911 special facility, as defined 

in 47 CFR 4.5(e). 

(iii) Specifically, the eligible 

telecommunications carrier’s annual 

report must include information 

detailing: 

(A) The date and time of onset of the 

outage; 

(B) A brief description of the outage 

and its resolution; 

(C) The particular services affected; 

(D) The geographic areas affected by 

the outage; 

(E) Steps taken to prevent a similar 

situation in the future; and 

(F) The number of customers affected. 

(2) The number of complaints per 

1,000 connections (fixed or mobile) in 

the prior calendar year; 

(3) Certification of compliance with 

applicable service quality standards and 

consumer protection rules; 

(4) Certification that the carrier is able 

to function in emergency situations as 

set forth in § 54.202(a)(2); 

(5) Information describing the terms 

and conditions of any voice telephony 

service plans offered to Lifeline 

subscribers, including details on the 

number of minutes provided as part of 

the plan, additional charges, if any, for 

toll calls, and rates for each such plan. 

To the extent the eligible 

telecommunications carrier offers plans 

to Lifeline subscribers that are generally 

available to the public, it may provide 

summary information regarding such 

plans, such as a link to a public Web 

site outlining the terms and conditions 

of such plans. 

(c) All reports required by this section 

must be filed with the Office of the 

Secretary of the Commission, and with 

the Administrator. Such reports must 

also be filed with the relevant state 

commissions and the relevant authority 

in a U.S. territory or Tribal 

governments, as appropriate. 

Note: The following appendixes will not 

appear in the Code of Federal Regulations. 

Appendix A 

Certification Requirements for Lifeline 

Subscribers 

Pursuant to the Universal Service LowIncome Order, all ETCs (or the state Lifeline 

program administrator, where applicable) 

must provide the following information in 

clear, easily understandable language on 

their initial and annual Lifeline certification 

forms: 

Household Information for Initial and 

Annual Certification Forms 

• Contact Information: All certification 

forms must ask for the Lifeline subscriber’s 

name and address information. 

• Residential Address: Prior to providing 

service to a consumer, ETCs must collect a 

residential address from each subscriber, 

which the subscriber must indicate is his/her 

permanent address, and a billing address, if 

different than the subscriber’s residential 

address. ETCs should inform subscribers 

that, if the subscriber moves, they must 

provide their new address to the ETC within 

30 days of moving. 

• A consumer who lacks a permanent 

residential address (e.g., address not 

recognized by the Post Office, temporary 

living situation) must provide a temporary 

residential service address or other address 

identifying information that could be used to 

perform a check for duplicative support. 

• Consumers using Post Office Box 

Addresses: Lifeline subscribers may not use 

a post office box as their residential address. 

An ETC may accept a P.O. Box or General 

Delivery address as a billing address, but not 

a residential address. 

• Consumers with Temporary Addresses: 

ETCs must collect permanent addresses from 

subscribers. If a subscriber does not have a 

permanent address, ETCs must: 

• Inform applicants that, if they use a 

temporary address, the ETC will attempt to 

verify every 90 days that the subscriber 

continues to rely on that address, and (as 

noted above) the subscriber must notify the 

ETC within 30 days of their new address after 

moving. 

• Inform the subscriber that if he or she 

does not respond to the ETC’s address 

verification attempts within 30 days, the 

subscriber may be de-enrolled from the ETC’s 

Lifeline service. 

• Multiple Households Sharing an 

Address: Upon receiving an application for 

Lifeline support, all ETCs must check the 

duplicates database to determine whether an 

individual at the applicant’s residential 

address is currently receiving Lifelinesupported service. The ETC must also search 

its own internal records to ensure that it does 

not already provide Lifeline-supported 

service to someone at that residential 

address. 

• If nobody at the residential address is 

currently receiving Lifeline-supported 

service, the ETC may initiate Lifeline service 

after determining that the household is 

otherwise eligible to receive Lifeline and 

obtaining all required certifications from the 

household. 

• If the ETC determines that an individual 

at the applicant’s residential address is 

currently receiving Lifeline-supported 

service, the ETC must collect from the 

applicant upon initial enrollment and 

annually thereafter a worksheet that: (1) 

Explains the Commission’s one-perhousehold rule; (2) contains a check box that 

an applicant can mark to indicate that he or 

she lives at an address occupied by multiple 

households; (3) provides a space for the 

applicant to initial or certify that he or she 

shares an address with other adults who do 

not contribute income to the applicant’s 

household and/or share in the household’s 

expenses; and (4) notifies applicants of the 

one-per-household certification requirement 

adopted below and the penalty for a 

consumer’s failure to make the required oneper-household certification (i.e., deenrollment). 

• One-per-Household Certification: All 

consumers must certify that they receive 

Lifeline support for a single subscription per 

household. 

• All ETCs (or state agencies or thirdparties, where they are responsible for 

Lifeline enrollment in a state) must obtain a 

certification from the subscriber at sign up 

and annually thereafter attesting under 

penalty of perjury that the subscriber’s 

household is receiving no more than one 

Lifeline-supported service. In addition, the 

certification form must include a place for 

the subscriber to separately acknowledge 

that, to the best of his or her knowledge, no 

one at the consumer’s household is receiving 

a Lifeline-supported service from any other 

provider. 

• The certification form must explain in 

clear, easily understandable language that: (1) 

Lifeline is a federal benefit; (2) Lifeline 

service is available for only one line per 

household; (3) a household is defined, for 

purposes of the Lifeline program, as any 

individual or group of individuals who live 

together at the same address and share 

income and expenses; and (4) households are 

not permitted to receive benefits from 

multiple providers. 

• The certification form must also contain 

clear, easily understandable language stating 

that violation of the one-per-household 

requirement would constitute a violation of 

the Commission’s rules and would result in 

the consumer’s de-enrollment from the 

program, and potentially, prosecution by the 

United States government. 

Eligibility Information for Initial and Annual 

Certification Forms 

• Identity Information: All certification 

forms must ask for the Lifeline subscriber’s 

date of birth and the last 4 digits of the 

subscriber’s social security number. 

• Establishing eligibility for Lifeline: 

• The certification form should be written 

in clear, easily understandable language and 

should include a place for the customer to 

sign under penalty of perjury attesting to his/ 

her eligibility for Lifeline. All ETCs (or the 

state Lifeline program administrator, where 

applicable) should obtain the consumer’s 

signature certifying under penalty of perjury 

that: 

• The consumer either participates in a 

qualifying federal program or meets the 

income qualifications to establish eligibility 

for Lifeline; 

• The consumer has provided 

documentation of eligibility, if required to do 

so; 

• The consumer attests that the 

information contained in his or her 

application is true and correct to the best of 

his or her knowledge and acknowledging that 

providing false or fraudulent information to 

receive Lifeline benefits is punishable by 

law. The certification form should explain 

that Lifeline is a government benefit program 

mstockstill on DSK4VPTVN1PROD with RULES3

12976 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

and consumers who willfully make false 

statements in order to obtain the benefit can 

be punished by fine or imprisonment or can 

be barred from the program. 

• The certification form must include 

space for consumers qualifying for Lifeline 

under an income-based criterion to certify 

the number of individuals in their 

household. 

• ETCs (or the state administrator, where 

applicable) should also obtain the 

consumer’s initials or signature on the 

certification form acknowledging that the 

consumer may be required to re-certify his or 

her continued eligibility for Lifeline at any 

time, and that failure to do so will result in 

the termination of the consumer’s Lifeline 

benefits. 

• Consumer no longer eligible for Lifeline: 

The certification form must notify the 

consumer using clear, easily understandable 

language that he or she must inform the ETC 

within 30 days if (1) The consumer ceases to 

participate in a federal qualifying program or 

programs or the consumer’s annual 

household income exceeds 135% of the 

Federal Poverty Guidelines; (2) the consumer 

is receiving more than one Lifeline-supported 

service; or (3) the consumer, for any other 

reason, no longer satisfies the criteria for 

receiving Lifeline support. Additionally, 

prior to enrolling in Lifeline, consumers must 

certify attest under penalty of perjury that 

they understand the notification requirement, 

and that they may be subject to penalties if 

they fail to follow this requirement. 

• Tribal eligibility: Consumers seeking 

Tribal lands Lifeline support must certify 

that they reside on Federally-recognized 

Tribal lands. 

• Non-transferability of Lifeline benefit: 

The certification form should inform 

consumers that Lifeline service is a nontransferable benefit, and that a Lifeline 

subscriber may not transfer his or her service 

to any other individual, including another 

eligible low-income consumer. 

Annual Re-Certification of Consumer 

Eligibility for Lifeline 

• By the end of 2012, each Lifeline 

subscriber enrolled in the program as of June 

1, 2012 must provide a signed re-certification 

form to the ETC (or the state Lifeline 

administrator, where applicable) attesting to 

their continued eligibility for Lifeline. This 

signed certification should collect all of the 

subscriber information noted above, 

including an updated address. Consumers 

may provide the re-certification in writing, 

by phone, by text message, by email, or 

otherwise through the Internet. 

• Alternatively, where a database 

containing consumer eligibility data is 

available, the carrier (or state Lifeline 

administrator, where applicable) must query 

the database by the end of 2012 and maintain 

a record of what specific data was used to recertify the consumer’s eligibility and the date 

that the consumer was re-certified. 

• The ETC or the state administrator, 

where applicable, must report the results of 

their re-certification efforts to USAC, the 

Commission, and the relevant state 

commission (where the state has jurisdiction 

over the carrier) by January 31, 2013. ETCs 

or the state administrator, where applicable, 

should also provide their re-certification 

results to the relevant Tribal government, for 

subscribers residing on reservations or Tribal 

lands. 

• ETCs must remind consumers about the 

annual re-certification requirement on the 

ETC’s certification form that is completed 

upon program enrollment and annually 

thereafter. 

Database 

• Consent to provide information to the 

database: An ETC must obtain 

acknowledgement and consent from each of 

its subscribers that is written in clear, easily 

understandable language that the subscriber’s 

name, telephone number, and address will be 

divulged to the Universal Service 

Administrative Company (USAC) (the 

administrator of the program) and/or its 

agents for the purpose of verifying that the 

subscriber does not receive more than one 

Lifeline benefit. In the event that USAC 

identifies a consumer as receiving more than 

one Lifeline subsidy per household, all 

carriers involved may be notified so that the 

consumer may select one service and be deenrolled from the other. 

Appendix B 

Lifeline Verification Survey Results for 2011 

and 2007 

TABLE 1—LIFELINE VERIFICATION RESULTS FOR 2011 

State/territory Subscribers 

surveyed 

Found 

ineligible 

No response 

to survey 

Percentage 

deemed 

ineligible 

Percentage 

nonresponders 

Federal Default States 

American Samoa ................................................................. 62 0 16 0 26 

Delaware .............................................................................. 534 56 217 10 41 

Hawaii .................................................................................. 499 61 116 12 23 

Indiana ................................................................................. 2,066 340 647 16 31 

Iowa ...................................................................................... 12,015 711 4,936 6 41 

Louisiana .............................................................................. 3,656 331 926 9 25 

New Hampshire ................................................................... 629 115 156 18 25 

North Dakota ........................................................................ 2,240 419 706 19 32 

Northern Mariana Islands .................................................... 1,857 0 0 0 0 

South Dakota ....................................................................... 2,411 243 802 10 33 

Non-Federal-Default States Mandating That ETCs Follow Federal Verification Procedures 

Arkansas .............................................................................. 6,114 384 653 6 11 

New York ............................................................................. 6,276 401 1,755 6 28 

North Carolina ...................................................................... 4,288 171 689 4 16 

Non-Federal-Default States Requiring ETCs To Submit Verification Results to USAC 

Alabama ............................................................................... 4,594 858 1,193 19 26 

Arizona ................................................................................. 1,982 180 674 9 34 

Pennsylvania ........................................................................ 2,519 226 395 9 16 

West Virginia ........................................................................ 1,123 198 338 18 30 

Average ................................................................................ 52,865 4,694 14,219 9 27 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12977 

TABLE 2—LIFELINE VERIFICATION RESULTS FOR 2007 

State/territory Subscribers 

surveyed 

Found 

ineligible 

No response 

to survey 

Percentage 

deemed 

ineligible 

Percentage 

nonresponders 

Federal Default States 

American Samoa ................................................................. 154 3 0 2 0 

Delaware .............................................................................. 250 4 162 2 65 

Hawaii .................................................................................. 296 54 11 18 4 

Iowa ...................................................................................... 9,492 1,646 1,219 17 13 

Indiana ................................................................................. 2,669 991 1,065 37 40 

Louisiana .............................................................................. 2,141 673 175 31 8 

New Hampshire ................................................................... 483 108 212 22 44 

North Dakota ........................................................................ 2,795 342 574 12 21 

Northern Mariana Islands .................................................... 947 0 0 0 0 

South Dakota ....................................................................... 1,823 472 447 26 25 

Non-Federal-Default States Mandating That ETCs Follow Federal Verification Procedures 

Arkansas .............................................................................. 5,650 1,608 296 28 5 

New York ............................................................................. 4,208 624 585 15 14 

North Carolina ...................................................................... 10,534 940 600 9 6 

Non-Federal-Default States Requiring ETCs To Submit Verification Results to USAC 

Alabama ............................................................................... 4,618 1,393 454 30 10 

Arizona ................................................................................. 1,313 619 525 47 40 

Kentucky .............................................................................. 11,482 1,253 1,788 11 16 

Pennsylvania ........................................................................ 138,453 10,956 9,866 8 7 

Puerto Rico .......................................................................... 4 3 0 75 0 

Tennessee ........................................................................... 4,907 1,562 891 32 18 

West Virginia ........................................................................ 838 109 702 13 84 

Average ................................................................................ 203,057 23,360 19,572 12 10 

Appendix C 

INITIAL COMMENTERS

Commenter Abbreviation 

AARP .............................................................................................................................................................................. AARP 

Advocates for Basic Legal Equality, Inc., Community Counseling Bristol County, Community Voice Mail, Crossroads Urban Center, Disability Right Advocates, Legal Services Advocacy Project, Low Income Utility Advocacy 

Project, National Center for Medical-Legal Partnership, National Consumer Law Center, On Behalf of Our, LowIncome Clients, New Jersey Shares, Ohio Poverty Law Center, Open Access Connections, Pennsylvania Utility 

Law Project, Pro Seniors, Inc., Salt Lake Community Action Program, Texas Legal Services Center, Virginia Citizens Consumer Council.

Consumer Groups 

Alaska Telephone Association ....................................................................................................................................... ATA 

American Library Association ......................................................................................................................................... ALA 

American Public Communications Council, Inc. ............................................................................................................. APCC 

Amvensys Telecom Holdings, LLC ................................................................................................................................ Amvensys 

Area Agency on Aging of West Central Arkansas ......................................................................................................... Area Agency on Aging 

WCA 

Arkansas Advocates for Nursing Home Residents ........................................................................................................ AANHR 

Association of Programs for Rural Independent Living .................................................................................................. APRIL 

AT&T ............................................................................................................................................................................... AT&T 

Benton Foundation and Center for Rural Strategies Public Knowledge and United Church of Christ, OC Inc. ........... Benton/PK/UCC

Box Top Solutions, Inc. .................................................................................................................................................. Box Top 

Budget Prepay, Inc., GreatCall, Inc. and PR Wireless Inc. d/b/a Open Mobile ............................................................ Budget/GreatCall/PR 

CenturyLink ..................................................................................................................................................................... CenturyLink 

CGM, LLC ....................................................................................................................................................................... CGM 

Cincinnati Bell Inc. .......................................................................................................................................................... Cincinnati Bell 

City Councilor Sean Paulhus (ME) 

City of New York ............................................................................................................................................................. City of NY 

City of North Las Vegas ................................................................................................................................................. North Las Vegas 

Comcast Corporation ...................................................................................................................................................... Comcast 

Commissioner Brenda Howerton (NC) 

Commissioner Joe Bowser (NC) 

Commissioner Lawrence Weekly (NV) 

Commissioner Michael Page (NC) 

Ogden-Weber Community Action Partnership ............................................................................................................... OWCAP 

COMPTEL ....................................................................................................................................................................... COMPTEL 

mstockstill on DSK4VPTVN1PROD with RULES3

12978 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

INITIAL COMMENTERS—Continued 

Commenter Abbreviation 

Conexions LLC d/b/a Conexion Wireless ....................................................................................................................... Conexions 

Consumer Cellular, Inc. .................................................................................................................................................. CCI 

Connecticut Department of Public Utility Control ........................................................................................................... CT DPUC 

Councilman Christopher A. Hilbert (VA) 

Councilman Howard Clement (NC) 

Councilman Jamie Benoit (MD) 

Councilman Kelvin E. Washington, Sr. (SC) 

Councilman Ricki Y. Barlow (NV) 

Councilwoman Cora Cole-McFadden (NC) 

Cox Communication Inc. ................................................................................................................................................ Cox 

CTIA–The Wireless Association ..................................................................................................................................... CTIA 

Daniel Reyes, III 

Delegate Benjamin S. Barnes 

Delegate Eileen Filler-Corn 

Delegate Joe Morrissey (VA) 

Delegate Paula J. Miller (VA) 

Public Service Commission of the District of Columbia ................................................................................................. DC PSC 

Educational Services Network, Corp. ............................................................................................................................. EDNet 

Executive Councilor Daniel St. Hilaire (NH) 

Florida Public Service Commission ................................................................................................................................ FL PSC 

General Communication, Inc. ......................................................................................................................................... GCI 

Gila River Telecommunications, Inc. .............................................................................................................................. GRTI 

House Democratic Caucus (GA) 

Indiana Family and Social Services Administration ....................................................................................................... Indiana FSSA 

Indiana Utility Regulatory Commission ........................................................................................................................... IN URC 

Institute for Health, Law & Ethics ................................................................................................................................... IHLE 

Iridium Satellite LLC ....................................................................................................................................................... Iridium 

Keep USF Fair Coalition ................................................................................................................................................. Keep USF Fair 

Kevan Lee Deckelmann 

Las Vegas Urban League ............................................................................................................................................... Las Vegas Urban League 

The Leadership Conference on Civil and Human Rights .............................................................................................. LCCHR 

Leap Wireless International, Inc. and Cricket Communications, Inc. ............................................................................ Cricket 

Massachusetts Department of Telecommunications and Cable .................................................................................... MA DTC 

Mayor Jim Bouley (NH) 

Media Action Grassroots Network .................................................................................................................................. MAG-Net 

Michigan Public Service Commission ............................................................................................................................ MI PSC 

Minority Media and Telecommunications Council .......................................................................................................... MMTC 

Mississippi Public Service Commission ......................................................................................................................... MS PSC 

Public Service Commission of the State of Missouri ..................................................................................................... MO PSC 

National ALEC Association/Prepaid Communications Association ................................................................................ NALA/PCA 

National Association for the Advancement of Colored People Reno/Sparks Branch #1112 ........................................ NAACP Reno Sparks 

National Association of State Utility Consumer Advocates ............................................................................................ NASUCA 

National Association of Telecommunications Officers and Advisors ............................................................................. NATOA 

National Cable & Telecommunications Association ....................................................................................................... NCTA 

National Consumer Law Center ..................................................................................................................................... NCLC 

National Telecommunications Cooperative Association ................................................................................................ NTCA 

Nebraska Public Service Commission ........................................................................................................................... NE PSC 

New America Foundation ............................................................................................................................................... NAF 

New Hampshire Coalition of Aging Services ................................................................................................................. NH Coalition of Aging 

New Hampshire Coalition Against Domestic and Sexual Violence ............................................................................... NHCADSV 

New Jersey Division of Rate Counsel ............................................................................................................................ NJ DRC 

New York State Public Service Commission ................................................................................................................. NY PSC 

Nexus Communications, Inc. .......................................................................................................................................... Nexus 

Ohio Association of Second Harvest Food Banks ......................................................................................................... OASHF 

Open Access Connections (formerly Twin Cities Community Voice Mail), Energy Cents Coalition, Main Street 

Project, Minnesota Center for Neighborhood, Organizing Voices for Change.

Open Access 

One Economy Corp. ....................................................................................................................................................... One Economy 

Partnership for a Connected Illinois ............................................................................................................................... PCI 

Public Utilities Commission of Ohio ............................................................................................................................... OH PUC 

Public Utilities Commission of Oregon ........................................................................................................................... OR PUC 

Rainbow PUSH Coalition ................................................................................................................................................ Rainbow PUSH 

Reunion Communications, Inc. ....................................................................................................................................... Reunion 

San Juan Cable LLC d/b/a OneLink Communications .................................................................................................. OneLink 

Several Members of the Texas House Democratic Caucus 

Smith Bagley, Inc. ........................................................................................................................................................... SBI 

Solix, Inc. ........................................................................................................................................................................ Solix 

Southern Nevada Children First ..................................................................................................................................... SNCF 

Sprint Nextel Corp. ......................................................................................................................................................... Sprint 

State Representative Barbara B. Boyd, Ed. D. (OH) 

State Representative Bob Turner (WI) 

State Representative Christopher J. England (AL) 

State Representative Cory Mason (WI) 

mstockstill on DSK4VPTVN1PROD with RULES3

Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12979 

INITIAL COMMENTERS—Continued 

Commenter Abbreviation 

State Representative Demetrius C. Newton (AL) 

State Representative Denise Driehaus (OH) 

State Representative Denise Harlow (ME) 

State Representative Diane Russell (ME) 

State Representative Dennis Murray (OH) 

State Representative J.M. Lozano (TX) 

State Representative John F. Knight (AL) 

State Representative John Robinson (AL) 

State Representative John W. Rogers (AL) 

State Representative Leslie Milam Post (AR) 

State Representative Mark Eves (ME) 

State Representative Peter Stuckey (ME) 

State Representative Ralph Howard (AL) 

State Representative Richard Laird (AL) 

State Representative Sheila Lampkin (AR) 

State Representative Stacy Adams (GA) 

State Representative Tony Payton (PA) 

State Senator Jason Wilson (OH) 

State Senator John C. Astle (MD) 

State Senator Thomas Mac Middleton (MD) 

Suzanne Burke 

TCA ................................................................................................................................................................................. TCA 

TracFone Wireless, Inc. .................................................................................................................................................. TracFone 

United States Telecom Association ................................................................................................................................ USTelecom 

Verizon and Verizon Wireless ........................................................................................................................................ Verizon 

ViaSat, Inc. ..................................................................................................................................................................... ViaSat 

Virginia Interfaith Center for Public Policy ...................................................................................................................... Virginia Interfaith Center 

YourTel America, Inc. ..................................................................................................................................................... YourTel 

Appendix D 

REPLY COMMENTERS

Commenter Abbreviation 

Advocates for Basic Legal Equality, Inc., Community Voice Mail National, Disability Rights Advocates, Low Income 

Utility Advocacy Project, The National Consumer Law Center, on Behalf of our Low-Income Clients, Ohio Poverty Law Center, Open Access Connections, Pennsylvania Utility Law Project, Pro Seniors, Inc., Texas Legal 

Services Center, Virginia Citizens Consumer Council.

Consumer Groups 

American Public Communications Council, Inc .............................................................................................................. APCC 

Amvensys Telecom Holdings, LLC ................................................................................................................................ Amvensys 

AT&T ............................................................................................................................................................................... AT&T 

California Public Utilities Commission ............................................................................................................................ CA PUC 

COMPTEL ....................................................................................................................................................................... COMPTEL 

CTIA—The Wireless Association ................................................................................................................................... CTIA 

Emerios ........................................................................................................................................................................... Emerios 

Fletcher School (Tufts University) .................................................................................................................................. Fletcher School 

General Communication, Inc .......................................................................................................................................... GCI 

Leap Wireless International, Inc. and Cricket Communications, Inc ............................................................................. Cricket 

Media Action Grassroots Network .................................................................................................................................. MAG–Net 

MFY Legal Services, Inc ................................................................................................................................................ MFY Legal Services 

Michigan Public Service Commission ............................................................................................................................ MI PSC 

Montana Independent Telecommunications Systems, LLC ........................................................................................... MITS 

National ALEC Association/Prepaid Communications Association ................................................................................ NALA/PCA 

National Association of State Utility Consumer Advocates ............................................................................................ NASUCA 

National Hispanic Media Coalition .................................................................................................................................. NHMC 

New Jersey Division of Rate Counsel ............................................................................................................................ NJ DRC 

Nexus Communications, Inc ........................................................................................................................................... Nexus 

One Economy Corp., League of United Latin America Citizens, Minority Media and Telecommunications Council ... One Economy 

Open Access Connections ............................................................................................................................................. Open Access Connections 

PR Wireless, Inc. d/b/a Open Mobile ............................................................................................................................. PR Wireless 

Regulatory Commission of Alaska ................................................................................................................................. Alaska Commission 

Reunion Communications, Inc ........................................................................................................................................ Reunion 

Sprint Nextel Corporation ............................................................................................................................................... Sprint 

State of Alaska ............................................................................................................................................................... Alaska 

Texas Statewide Telephone Cooperative, Inc ............................................................................................................... TX Telephone Cooperative 

TracFone Wireless, Inc ................................................................................................................................................... TracFone 

Verizon and Verizon Wireless ........................................................................................................................................ Verizon 

YourTel America, Inc.

mstockstill on DSK4VPTVN1PROD with RULES3

12980 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Appendix E 

USAC DISBURSEMENT PUBLIC NOTICE COMMENTERS

Commenter Abbreviation 

Alexicon Telecommunications Consulting ...................................................................................................................... Alexicon 

CenturyLink ..................................................................................................................................................................... CenturyLink 

COMPTEL ....................................................................................................................................................................... Comptel 

Michigan Public Service Commission ............................................................................................................................ MI PSC 

PR Wireless, Inc. d/b/a Open Mobile ............................................................................................................................. PR Wireless 

Smith Bagley, Inc ............................................................................................................................................................ Smith Bagley 

South Carolina Office of Regulatory Staff ...................................................................................................................... South Carolina Office of 

Regulatory Staff 

Sprint Nextel Corporation ............................................................................................................................................... Sprint 

United States Telecom Association ................................................................................................................................ USTelecom 

Verizon and Verizon Wireless ........................................................................................................................................ Verizon and Verizon Wireless 

Reply Commenter 

Massachusetts Department of Telecommunications and Cable .................................................................................... MDTC 

National Tribal Telecommunications Association ........................................................................................................... NTTA 

Nexus Communications, Inc ........................................................................................................................................... Nexus 

[FR Doc. 2012–4978 Filed 3–1–12; 8:45 am] 

BILLING CODE 6712–01–P 

mstockstill on DSK4VPTVN1PROD with RULES3