Common Findings: Lifeline Program

Relevant FCC Rules

• 47 CFR § 54.407(c)
• 47 CFR § 54.407
• 47 CFR § 54.417

Description of Finding

This finding occurs when a carrier fails to properly identify subscribers who have not used their service within 30 consecutive days when the company does not assess or collect a monthly fee. The carrier must:

• Identify and count as valid usage those activities eligible per the FCC Rules.
• Identify non-usage within 30 days and provide a 15-day notice to the subscriber informing them that failure to use the service will result in termination.
• De-enroll subscribers who have not used the service for 45 consecutive days.
• Retain adequate documentation demonstrating that a compliant non-usage process is in place.

Relevant FCC Rules

• 47 CFR § 54.410
• 47 CFR § 54.410(f)(1)
• 47 CFR § 54.410(f)(4)
• 47 CFR § 54.417
• 47 CFR § 54.400(o)
• 47 CFR § 54.409
• 47 CFR § 54.410(f)(2)(iii)

Description of Finding

This finding occurs when a carrier fails to maintain the necessary documentation to demonstrate compliance with Lifeline and Tribal Link Up program rules, as outlined in 47 CFR § 54.417. Specifically, the carrier may fail to:

• Maintain records for at least three full preceding calendar years or for as long as a subscriber receives Lifeline service, whichever is longer.
• Ensure that these records are available for inspection by the Commission or Administrator upon request.
• Provide recertification documentation to show evidence of successful recertification. Recertification documentation provided is not adequate (form was not the correct form based on the period under review, PII on form did not match the sampled subscriber’s PII in LCS, etc.,) to support the subscriber’s continued eligibility to receive Lifeline benefits.
• Provide eligibility documentation to support the subscriber’s eligibility in the program. Eligibility documentation provided is not adequate to support the subscriber’s eligibility such as, benefit coverage period was outside of the application period, benefit card was dated over a year from the enrollment date, suspicious documentation, documentation did not indicate eligibility, Income documentation reviewed does not show three consecutive months, etc.

Relevant FCC Rule

• 47 CFR § 54.406

Description of Finding

This finding occurs when a carrier does not comply with FCC requirements regarding the registration and activities of enrollment representatives. Specifically, violations include:

• Failure to properly register all enrollment representatives with the Universal Service Administrative Company (USAC), including the collection of required identifying information.
• Improper use of unique identifiers, such as representatives using identifiers assigned to others to enroll or recertify Lifeline subscribers.
• Failure to ensure that enrollment representatives recertify their status or update their registration information as required.
• Offering commission-based compensation to enrollment representatives or their direct supervisors based on the number of consumers enrolled in the Lifeline program, which is prohibited. 

Carriers must ensure that internal or external enrollment representatives do not receive offers or paid commissions in violation of FCC rules.

Relevant FCC Rule

• 47 CFR § 54.405

Description of Finding

This finding occurs when a carrier fails to properly de-enroll subscribers in accordance with the de-enrollment procedures specified in 47 CFR § 54.405. This includes:

• Failing to de-enroll subscribers who are no longer eligible for Lifeline service or not providing proper notification and a 30-day window for subscribers to demonstrate continued eligibility.
• Not de-enrolling subscribers who are receiving duplicative Lifeline support, even after notification from the Administrator, within the required five business days.
• Failing to de-enroll subscribers for non-usage after 30 consecutive days without service or not providing proper notice regarding impending termination.
• Not de-enrolling subscribers who fail to respond to re-certification requests within the required 60-day period.
• Failing to process subscriber-initiated de-enrollment requests within the required two business days.

Such errors result in ineligible subscribers continuing to receive Lifeline support. Carriers must ensure they only claim subscribers that are eligible to receive Lifeline support and de-enroll those that are no longer eligible.

Relevant FCC Rules

• 47 CFR § 54.403
• 47 CFR § 54.514

Description of Finding

This finding occurs when a carrier fails to pass through the full amount of Lifeline support to qualifying low-income consumers, as required under FCC rules. Specific violations include:

• Failing to pass the full federal Lifeline support credit to eligible subscribers.
• Incorrectly applying the Lifeline support amount, such as charging consumers more than the required discount or failing to reduce charges appropriately.
• Not applying the additional $25 per month in support for residents of Tribal lands or failing to demonstrate compliance with Tribal Lifeline support requirements.

Carriers must ensure that they only claim subscribers in LCS for whom the full amount of Lifeline support has been passed through.

Relevant FCC Rule

• 47 CFR § 54.400(g)

Description of Finding

This finding occurs when subscribers or BQPs share the same PII, such as first name, last name, address, date of birth, or photo . Carriers must ensure that only one discount is claimed per household.