Ajit Pai’s supporters say he’s gone too far with plan that hurts poor people

Ajit Pai can usually count on support from broadband industry lobbyists and conservative think tanks each time he announces a new policy. But Pai’s proposal to limit broadband choices for poor people who rely on a telecom subsidy program is coming under fire from all directions. Pai, the Federal Communications Commission chairman, wants a major overhaul of Lifeline, a federal program that lets poor people use a $9.25 monthly household subsidy to buy Internet and/or phone service. Today, more than 70 percent of wireless phone users who rely on Lifeline subsidies buy their plans from resellers, i.e. companies that purchase capacity from network operators and then resell it directly to consumers. Further Reading Sorry, poor people: The FCC is coming after your broadband plans Pai’s Lifeline plan would force all of those customers to find new carriers, because he proposes to limit Lifeline subsidies to “facilities-based broadband” providers, those that operate their own networks. As we’ve previously reported , excluding resellers from the program would limit competition in the market for subsidized plans and push consumers toward network operators like AT&T, Verizon, T-Mobile USA, and Sprint. Consumer advocacy groups have criticized this proposal, just as they have previous Pai moves… Read full this story

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