January 4, 2021 – The Federal Communications Commission is seeking comment on the creation of an Emergency Broadband Benefit Program which will provide a discount to eligible households on the monthly cost of broadband services and certain connected devices.[1]

Benefits will be available during the emergency period related to the COVID-19 pandemic. Participating broadband providers will receive a reimbursement for providing the discount benefits, similar to the way the FCC’s Lifeline program operates.

Comments are due on or before January 25, 2021, and reply comments are due February 16, 2021.

Congress established a $3.2 billion Emergency Broadband Connectivity Fund as part of the Consolidated Appropriations Act, 2021. Congress directed the FCC to create an Emergency Broadband Benefit Program using the $3.2 billion in funding. Below are some of the primary details of the program:

Voluntary Participation – Participation in the program is voluntary, and is limited to broadband providers offering service as of December 1, 2020. However, to participate, a broadband Internet access service provider must either be designated as an Eligible Telecommunications Carrier (ETC) or be approved by the FCC.

Broadband Service Discounts – Funding will be used to support the provision of certain broadband services and connected devices to qualifying households. Participating providers will make available to eligible households a monthly discount off the standard rate for an Internet service offering and associated equipment, up to $50.00 per month. On Tribal lands, the monthly discount may be up to $75.00 per month.

Support For Connected Devices – Participating broadband providers that also supply an eligible household with a connected device – a laptop, desktop computer, or tablet – for use during the emergency period may receive a single reimbursement of up to $100 for the connected device, if the charge to the eligible household for that device is more than $10 but less than $50. An eligible household may receive only one supported device.

Provider Reimbursements – Participating broadband service providers will receive reimbursements from the Emergency Broadband Benefit Program for the discounts provided. This is similar to the way the Lifeline program operates.

Emergency Period – begins on the date of the enactment of the Consolidated Appropriations Act, 2021 (Dec. 27, 2020), and ends on the date that is 6 months after the date on which the Secretary of Health and Human Services determines that the COVID-19 public health emergency terminates.

In the Public Notice, the FCC’s Wireline Competition Bureau is seeking comment on how to structure the Emergency Benefit Program, consistent with the Congressional directives in the Consolidated Appropriations Act. Below are some of the issues and questions the Bureau is asking commenters to address:

Participating Providers – ETCs – Providers designated as ETCs may participate in the Emergency Broadband Benefit Program without seeking approval from the Commission.

Participating Providers – Non-ETCs – Broadband providers that are not ETCs must meet certain requirements and be approved by the FCC to participate in the Emergency Broadband Benefit Program. The FCC will establish an expedited process for such approval.

Designating Broadband Providers Where They Are Not ETCs – For a broadband provider that is not designated as an ETC in a particular area to participate, it must meet FCC oversight requirements. The FCC proposes that non-ETC providers will be required to meet two requirements: (i) any broadband provider seeking to participate will be required to make the Emergency Broadband Benefit available across all of its service areas in each of the states in which it is approved to participate; and (ii) broadband providers will be required to adopt a plan to combat waste, fraud, and abuse similar to the compliance plans required of non-facilities-based carriers seeking approval to participate in the Lifeline program.

Application To Participate In Areas Where A Provider Is Not An ETC – The FCC proposes to require broadband providers that wish to participate in the program in areas where they are not designated as ETCs to submit an application to the FCC, concurrently with an election notice to USAC. The FCC proposes that such notice indicate, at least: (1) the states in which it plans to participate, (2) the service areas in which the provider has the authority, if needed, to operate in each state but has not been designated an eligible telecommunications carrier, (3) documentation of the provider’s plan to combat waste, fraud, and abuse, (4) whether it seeks automatic approval because it offers an established program in each state, and (5) if seeking such automatic approval, documentation that the broadband provider has a qualifying established program in such states.

FCC & USAC Registration – Participating broadband providers will be required to register with the FCC and USAC, and have both an FCC Registration Number and a Service Provider Identification Number before filing an election notice.

Notice Of Participation – All broadband providers that wish to participate in the Emergency Broadband Benefit Program will be required to submit a notice to USAC indicating their election. The FCC proposes the notice indicate, at least: (1) the states in which the provider plans to participate, (2) a statement that, in each such state, it was a “broadband provider” within the meaning of the Consolidated Appropriations Act as of December 1, 2020, (3) whether it seeks to participate in each state because it is either a designated ETC or is seeking designation by the FCC to participate (or both), (4) whether the provider intends to distribute connected devices in each such state, (5) a description of any Internet service offerings for which it plans to seek reimbursement in each state, and (6) documentation demonstrating the standard rates for the services for which it may claim reimbursement from the Emergency Broadband Benefit Program.

Rolling Acceptance – The FCC proposes to accept elections on a rolling basis throughout the Emergency Broadband Benefit Program. Comment is sought on the following: Should the FCC adopt a specific timeframe for acting on provider elections; Once USAC has reviewed an election notice and verified the broadband provider is eligible to participate, how should it inform applicants of that determination; Should such a determination apply only prospectively or be effective as of the date the election notice was properly and completely filed; and What information should USAC disclose to the public about election notices as well as its determinations?

Standard Rate For Broadband Service – The Emergency Broadband Benefit will support “no more than the standard rate” for an Internet service offering (and associated equipment). The FCC proposes to require participating providers to submit documentation demonstrating the standard rates for the services for which it may claim reimbursement from the program. The Bureau is seeking comment on (1) the most efficient method for having participating providers submit the standard rate information; and (2) how the FCC should interpret the “standard rate” for supported offerings.

Lifeline Verifier & Accountability Database – The FCC is required to expedite the ability of all participating broadband providers to access the Lifeline National Eligibility Verifier and National Lifeline Accountability Database for the purposes of determining whether a household is an eligible household. The FCC proposes that all participating providers be required to have their agents and other enrollment representatives registered with the Representative Accountability Database, as previously recommended by the Office of the Inspector General for the Lifeline program, as a best practice to minimize waste, fraud, and abuse.

Tracking & Verifying Household Eligibility – The FCC proposes to use the definition of “household” provided in the Lifeline rules for purposes of administering the Emergency Broadband Benefit Program. A household that is eligible for the Emergency Broadband Benefit is not disqualified by participating in the Lifeline program and also may receive both benefits, either on the same or different services. To track the eligibility of households and prevent duplicative support, the FCC proposes to require all participating providers to track enrollments of eligible households in the Emergency Broadband Benefit Program in the National Lifeline Accountability Database.

Eligible Households – A household may qualify for the Emergency Broadband Benefit if at least one member of the household: (1) meets the qualifications for participation in the Lifeline program; (2) has been approved to receive benefits under the free and reduced price lunch program under the Richard B. Russell National School Lunch Act or the school breakfast program under section 4 of the Child Nutrition Act of 1966; (3) has experienced a substantial loss of income since February 29, 2020; (4) has received a Federal Pell Grant under section 401 of the Higher Education Act of 1965 in the current award year; or (5) meets the eligibility criteria for a participating provider’s existing low-income or COVID–19 program, subject to approval by the FCC and any other requirements deemed necessary. Participating providers may not disqualify a household because a “member of the household has any past or present arrearages with a broadband provider.”

Verifying Eligible Households – Participating providers must verify the eligibility of a household for the Emergency Broadband Benefit either by: (1) directing applicants to the National Verifier and the National Lifeline Accountability Database, (2) relying on a school to verify participation in the free and reduced price lunch program or the school breakfast program, or (3) using the provider’s eligibility verification process if such process is approved by the FCC.

Reimbursements – The FCC proposes that participating broadband providers be reimbursed through the Lifeline Claims System administered by USAC, and subject to all the requirements of the Lifeline Claims System.

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[1] Wireline Competition Bureau Seeks Comment On Emergency Broadband Connectivity Fund Assistance, WC Docket No. 20-445, Public Notice, DA 21-6 (Jan. 4, 2021), https://docs.fcc.gov/public/attachments/DA-21-6A1.pdf.