State May Permanently Shrink Internet And Cell Phone Discounts For Low-Income Californians

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State May Permanently Shrink Internet And Cell Phone Discounts For Low-Income Californians
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Companies and consumers aren’t happy, but consumer advocates say the proposed rule could be a more efficient use of the public’s money.

that would limit how much communication companies could make from the state’s Lifeline program, which provides discounts to low-income households for home phone and cell phone services.

The outcome of the proposal “is perverse, elitist, discriminatory and profoundly harmful to California’s low-income consumers,” six California Lifeline providers and the National Lifeline Association recently wrote to the commission.Some 1.7 million California residents are enrolled in the state’s Lifeline program, which is an offshoot of the federal Lifeline program.

Now, at best, consumers can apply one Lifeline plan and one Affordable Connectivity Plan discount per household. The commission is considering making that limit permanent. At least 30 members of the public wrote to the commission opposing changes to the discounts and defending their use of data. “This proposed decision would exacerbate inequality and expand the digital divide for low-income Californians struggling to compete in today’s rapidly changing digital economy,” he wrote.

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